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FC CASE 1998 CAPITAL OUTLAY By: Jessie Hart, Finance Officer Background: The Finance Committee and City Council have been presented with various cases requesting approval to proceed with the capital items included in the Adopted 1998 General Fund Budget. These purchases have been delayed until a comprehensive financing plan is complete. It is anticipated that this comprehensive financing plan will be presented to the Finance Committee, in the form of the 1998 - 2003 Capital Improvement Program, on Monday, March 23, 1998. As the year progresses, it becomes more important to move forward with these purchases to ensure delivery in time for the approaching busy seasons and by the next snow season. In anticipation of a favorable financing report, the authorization to proceed with the purchase of the following capital items, listed in order of importance, is being requested: PUBLIC WORKS One-Ton with Dump Box and Plow Included in the 1998 budget is $35,000 for the purchase of a truck cab and chassis for the existing water truck, although the Public Works department has determined that this purchase can wait one to two more years as it has become more important to replace one of the existing one-ton plow trucks. Unit #615, a 1989 GMT 4X4 dump truck with plow is used year-round, including a designated cul-de-sac plow route. After approximately three plowing seasons, this vehicle became plagued with transmission problems. This truck has had five plus transmission repairs and/or replacements to date. It is the opinion of the Public Works departments that prolonging the useful life of this vehicle is not cost effective. It has been determined that neither of the cooperative purchasing ventures have awarded contracts for this type of truck making it necessary to prepare specifications and solicit sealed bids, as it is estimated to be in excess of $25,000. It is being requested that staff be allowed to prepare specifications and solicit sealed bids for the purchase of a one-ton with dump box and plow. Two and One-Half Ton Dump Truck with Plow, Wing and Sander Included in the 1998 budget is $80,000 for the replacement International equipped with dump box, plow, wing and sander. truck has deteriorated to the point that replacement is needed. of Unit #610, a 1984 The condition of the The new truck, a Sterling L8511 [2-1/2 ton] can be purchased through the State of Minnesota Cooperative Purchasing contract for a price of $51,800. The remaining budget of $28,200 will be necessary for the remainder of the equipment on the truck. The dump box, plow, wing and sander will be also be purchased through the State contract.