HomeMy WebLinkAboutNB 5 WATER TRUCK 10-06-86TO:
FROM:
SUBJECT:
WILLIAI"I HUSTON, CITY I~ANAGER
PUBLIC WORKS DEPARTMENT/ENGINEERING DIVISION
PURCHASE OF WATER TRUCK
RECOMMENDATION:
Request the Tustin City Council, at their regular meeting of October 6, 1986, to
reappropriate $12,500 from the 1985-86 fiscal budget into the 1986-87 fiscal
budget and authorize the purchase of a used 1981 water truck from Hertz Rental for
$17,500.
BACKGROUND:
In fiscal 1984-85, one of the existing street sweepers was to be replaced. Due to
bidding problems this did not occur. However, with the anticipated sweeper
replacement, in fiscal 1985-86, $12,500 was budgeted for the conversion of the
Ecolotec sweeper to a water truck. Since the conversion was not possible, at that
time, and because we will, in the near future, have the sweeper replacements, it
is requested that the $12,500 be reappropriated in the fiscal 1986-87 budget.
DISCUSSION:
For the past few years, we have been renting a water truck from Hertz Rental.
Hertz now wants to sell the water truck and has approached the City to purchase
same at a cost of $17,500.
If we convert the Ecolotec sweeper to a water truck, we would not have utilization
of the equipment for approximately six months. Even at that time, we would have a
piece of equipment with an estimated five to six years service life due to the age
and previous use of the sweeper. However, if we sell the Ecolotec, it is
estimated that the City will recover $2,000 to $2,500.
The resale value of the Ecolotec plus the reappropriated funding for conversion
from the 1985-86 budget would leave us approximately $2,500 short of the asking
price from Hertz. This shortfall is fundable through the vehicle lease fund.
Purchase of a new water truck would be approximately $60,000 With a life
expectancy of about 20 years; the Hertz equipment is only five years old. It is
anticpated that, with the City's utilization of the equipment, this piece of
equipment would have a 15 year life expectancy.
The water truck would be used in all field operations including the Water
Division. Given this, staff feels the purchase of the Hertz water truck is the
most economic and practical course of action.
OCTOBER 1, 1986
PAGE TWO
It has been difficult to obtain comparative prices for a like and kind sweeper.
However, Aquatic Truck Rentals of Riverside just sold a 1973 model with 86,000
miles for $10,000; and, Carmanita Ford recently sold a 1979 model with unknown
mileage for 14,000. Given this, it would appear that the asking price for the
1981 sweeper is somewhat under the market place and would warrant an exception to
purchasing by the black letter of the City's purchasing ordinance.
'B6b Le~ndecker
Director of Public Works/City Engineer
BL:MB:jm
Monda Buckley /
Acting Maintenance Superintendent