The township is purchasing two new pickup trucks at a total cost of a little over $70,000.
Council authorized staff to purchase a 2016 Dodge Ram 1500 4×4 with a diesel engine and extended warranty coverage from Howes and Reeves Ltd. in Fergus for $34,081 plus HST including the trade-in value. Four bids were received on the tender, but only two offering a diesel engine option. The Howes and Reeves bid was the lower of the two.
Public works director Brad McRoberts explained in a staff report an optional cost to upgrade to diesel was requested on the tenders “as diesel engines provide additional value in that the engines can perform longer and at greater fuel economies.”
McRoberts noted the price difference between diesel and regular fuel is variable depending up season (higher than gasoline in winter but lower in summer), and likely does not represent any significant cost savings.
The report estimates that based upon a savings rate of one litre per 100 kilometers and an anticipated 200,000 kilometer engine life for a non-diesel engine, total savings of $2,000 on fuel could be achieved.
“More significant is the longer engine life expectancy of a diesel engine,” the report states.
“If a minimum of an additional two years of service life was achieved the deferral of a new vehicle cost for a two year period would result in an approximate $5,600 savings.”
Council also authorized the purchase of a 2016 Ford F-450 XL 4×4 from Reliable Ford with extended warranty and the trade in bringing the bid amount to $36,591 plus HST. The bid was the lower of two received.
McRoberts noted that $100,000 had been budget for the purchase. The budget amount also includes the installation on a new box to be provided by Eloquip for $20,875 plus a new Ford plow mounting harness assembly. The current plow attachment will be reused.
