The Parks Department uses dump trucks for many tasks including hauling soil, gravel, rock, landscaping materials and larger equipment in the maintenance and construction of City parks. Currently, the Department has a 1984, 4 cy. dump truck and a 1981 grain truck.  Neither unit is suitable for park use as one is too big and requires a Commercial Drivers License to operate and the other cannot haul soil materials adequately.  They are both over 28 years old, parts are hard to obtain, and maintenance costs are high.  Replacements for these trucks were approved through the Equipment Replacement Plan, and the Council approved a budget amendment earlier this year to provide the funding.

Specifications for two new Landscape Dump Trucks were developed, and sealed bids were requested in the Billings Times on March 1 and 8, 2012, and posted on the City's website. Bids were opened on March 13, 2012 , and the following three bids were received:

Company	Base Bid	Storage Box	5-Year Ext. Warranty	Net Bid
Motor Power Equipment	$165,718	$250	$2,275	$168,243
Motor Power Equipment	$157,402	$250	$2,275	$159,927
I-State Truck Center	$157,950	$250	$1,450	$159,650

I-State Truck Center provided the lowest net bid when adding the Storage Box and 5 year extended warranty.  They meet the bid specifications and requirements. Delivery of the two trucks is expected to be within 150 days of bid award.

Trade-in values were not used in computing the net bid price.  Both bidders offered very low trade-in values.  As a result, the trucks will be sold through auction, which should result in a higher price for each one, and the proceeds will be deposited into the Capital Equipment Replacement Fund.

City Council may:
 
1. Approve the I-State Truck Center bid for both dump trucks or;
2. Reject all bids and provide guidance to staff on the desired next steps.

The two landscape dump trucks are being purchased through the Capital Equipment Replacement Fund. The cost falls within the budgeted amounts for the equipment.

Staff recommends that the City Council approve the bid of $159,650 from I-State Truck Center for the purchase of two new landscape trucks with dump body and not accept the trade-in values offered for Units 1693 and 1624.