HomeMy WebLinkAbout10A Authorizing 2011 Equipment Replacement PurchasesPRI �'' \
CITY COUNCIL AGENDA REPORT
MEETING DATE:
APRIL 4, 2011
AGENDA #:
10A
PREPARED BY:
AL FRIEDGES, PARK & FLEET SUPERVISOR
PRESENTER:
AL FRIEDGES
AGENDA ITEM: CONSIDER APPROVAL OF A RESOLUTION AUTHORIZING 2011
EQUIPMENT REPLACEMENT PURCHASES
DISCUSSION: Introduction
The purpose of this agenda item is to seek City Council approval for the
replacement of the following vehicles and equipment:
1. 1999 Ford F350 Utility Truck ( #756)
2. 1996 80KW Cat Generator ( #776)
3. 1995 JCB Backhoe ( #785)
4. 2006 Melroe Bobcat S250 skid loader ( #501)
History
To effectively deliver services in all City Departments including police, fire
and public works, the City makes two key investments. The investments
are: 1) employees who have the training, knowledge and motivation 10 ac-
complish the work; and 2) the necessary equipment and vehicles to per-
form the work. The investment in both areas is critical to getting daily work
done quickly, safely, correctly and in extreme weather conditions. The in-
vestment in one area or the lack thereof impacts the other.
Years ago the City would purchase vehicles and heavy equipment using
four -year equipment bonds. Using this funding source, each vehicle and
piece of equipment had to be paid off in four years. As the City grew in its
size and maintenance responsibilities, the number and types of equipment
needed increased. The cost of equipment increased as well. In the early
1990's, the City realized the four year equipment bonds were not keE;ping
up with replacement needs. This was demonstrated by the fact that about
70% of the equipment owned by the City was beyond its expected life span
in hours and /or miles. The result was waste of staff time trying to stall
equipment and extensive breakdowns once the equipment was in service.
In 1998, the Equipment Replacement Plan became a new element to our
five -year Capital Improvement Program. The Equipment Replacement Plan
identifies the City's equipment needs on a long term basis (12 years) and
provides a schedule for identifying acquisitions and replacement of new
equipment. The Revolving Equipment Fund was created that would fund
the program and eliminate the necessity to issue debt in the form of four
year equipment certificates.
The Equipment Replacement Plan is broken down by departments - Fire,
Police, Buildings, Engineering, Parks and Public Works, and includes a
summary sheet of expenditure and revenue totals with a running cumula-
tive fund balance. Each piece of equipment has been assigned a life ex-
pectancy ranging from 6 - 30 years with the exception of the Fire Depart-
ment's equipment that does not experience typical usage. By establishing a
regular replacement schedule, service costs and down time are reduced.
Currently, there are 138 vehicles and pieces of equipment in the fleet. The
total number of vehicles and pieces of equipment includes squad cars, fire
equipment, pickup trucks, utility equipment, dump trucks, sweepers, mow-
ers, loaders, skid loaders, trailers, tractors, street repair equipment, s 'low
and anti -ice equipment, forestry equipment, utility vehicles, generators and
staff cars.
As part of the Capital Improvement Program (CIP) the City Council adopts
the Equipment Replacement Plan each year. The purpose of the Plan is to
identify and program equipment and vehicles that need replacement Jue to
age or wear, or for additional equipment that needs to be replaced due to
growth. Actual expenditures for all equipment identified in the Plan a
subject to Council approval.
Current Circumstances
The Equipment Replacement Plan is a tool which provides funds which are
likely to be needed for vehicle and equipment acquisition and refurbishing
but the decision whether to expend the funds is subject to the City Coun-
cil's final evaluation and approval.
Prior to the recommendation for replacement or addition of vehicles and
equipment, the following criteria are analyzed to determine whether si ve-
hicle /equipment should be replaced, how and with what type:
1. Vehicle and Equipment Refurbishing
2. Lease, Rental and Borrowing Options
3. Equipment Zero Value Operation
4. Alternative Fuels
5. Vehicle and Equipment Scheduling and Operations Procedures
6. Equipment Partnerships
7. Investigation of Used vs. New
8. Alternative Annual Cost Analysis
Attached for City Council review is the detailed eight -step analysis for each
proposed replacement. For 2011 the Equipment Replacement Plan in-
cluded the following equipment/vehicles and budgeted funds:
1. 1999 One -Ton Utility Truck ($81,370.00 - Street and Utility Depart-
ment)
2. 1996 80KW Towable Emergency Generator ($40,170.00 - Stre -et and
Utility Department)
3. 1996 Backhoe ($118,450.00 - Street and Utility Department)
4. 2001 16 -ft Rotary Turf Mower ($79,516.00 - Parks Department)
5. 2006 Skid Loader ($60,000.00 - Parks Department)
6. 2001 One -Ton Pickup Truck w/ Plow ($61,594 - Streets and Utilities)
7. 2005 Inspection Squad Car ($12,000 - Code Enforcement)
Annually, City staff evaluates any vehicles and equipment that can have
their useful lives extended. After a comprehensive analysis of the proposed
2011 vehicle and equipment identified for replacement, staff recommends
that the 2001 One -Ton Pickup Truck and Code Enforcement Squad Car
should have their life extended and be replaced in the future. Staff is also
recommending that replacement of the 2001 Rotary Mower be delayed to
allow staff to evaluate private contract mowing options. The recommenda-
tions for the remaining four vehicles and pieces of equipment are noted be-
low.
1. 1999 Ford F350 4X4 (1 Ton) Utility Truck (Unit #756)
The Streets and Utilities Division of Public Works currently utilize a Ford
F350 4X4 truck equipped with a utility box and crane for the maintenance
and emergency repairs of the City's 39 lift stations. The utility box equipped
on this vehicle is utilized for transporting repair parts, tools, testing equip-
ment and confined space entry equipment, and has the capability to power
pertinent equipment. In addition, this piece of equipment is depended upon
for the reconstruction of 200 plus manholes annually.
The existing 1999 Ford F350 4X4 (one ton) utility truck is 12 years old and
has accumulated 127,200 miles. This vehicle will require $6,244.88 of re-
pairs in the near future to continue use. The City needs to upgrade the ex-
isting winch on this truck to safely handle pumps in the City's lift stations.
The current 1 ton chassis does not meet the new winch weight require-
ments.
The attached detailed analysis contains additional information on the rec-
ommendation for replacement. Based on that analysis, the lowest anlual
cost option that meets the City's needs is to replace the existing utility truck
with a new 1 '/z ton utility truck.
In accordance with the City's purchasing policy, quotes were solicited
through the State of Minnesota Purchasing Program for Ford, General Mo-
tors (GM) and Chrysler. Because of non - availability in the 4500 series ve-
hicle, Nelson Auto (representing GM) did not respond with a bid.
The low quote amount of $33,792.82 was submitted by Midway Ford. Staff
is recommending this vendor. The bid /quotes were received as follows:
In addition to the truck chassis, quotes were received for the utility box,
crane and appurtenant equipment and are as follows:
3
Nelson Auto
Chevrolet
Nelson Auto
(Dodge)
Midway Ford
Ford
State Bid
Yes
Yes
Make /Model
4500 series
4500
F -450
Price
not available
38,758.92
$37,431.88
Trade -in
$6,800.00
$6,000.00
Sub -Total
$31,958.92
$31,431.88
Tax 6.875%
$2,197.18
$2,160.94
License Fee
$200.00
$2 00.00
Total
$34,356.10
$33,7 92.82
In addition to the truck chassis, quotes were received for the utility box,
crane and appurtenant equipment and are as follows:
3
Vendor
Aspen
ABM
Truck Utilities
Fiberglass Ser-
vice Body
$10,736.00
$8,248.00
$9,704.00
Compartments
$2,732.00
$2,466.00
$2,339.00
Service Body
Options
$5,760.00
$5,474.00
$7,344.00
Crane /Outriggers
$23,054.00
$28,154.00
$26,550.00
Power Inverter
$2,136.00
$1,617.00
$2,150.00
Led Warning
Lights
$406.00
$856.00
$197.00
Sub -total
$44,824.00
$46,815.00
$48,284.00
Tax
$3,081.65
$3,218.53
3,319.53
Total
$47,905.65
$50,033.53
$51,603.53
A low quote in the amount of $47,905.65 was submitted by Aspen for the
utility box and appurtenant equipment. The total cost for the truck chassis,
utility box, crane and appurtenant equipment is $81,698.47. The 2011
Equipment Plan budgeted $81,370.00 programmed for this purchase.
2. 1996 Caterpillar 80KW Generator (Unit #776)
The Utility Division of Public Works currently utilizes an 80KW generator for
emergency power on the City's 39 lift stations. Staff recommends the trade -
in of this generator and proposes to purchase an 80KW Caterpillar portable
diesel generator.
The existing 1996 Caterpillar 80KW generator is 15 years old and has ac-
cumulated 3710 hours, is a 480 volt unit, and is only capable of operating
eight of the 39 City lift stations. In order for a generator to operate all of the
lift stations, it must be equipped with 120/240 and 277/480 volt electrical
system.
The City of Prior Lake has approved Caterpillar Generators as our Stan-
dardized Emergency Generator. By standardizing the generator equipment
the City is able to maintain inventory parts and enter into a single mainten-
ance contract which results in savings to the taxpayers. Because these
generators are used for emergencies, it is important that they be standar-
dized to allow for minimal operation issues and maximum familiarity for
staff. This is of specific importance with the City's portable generators as
they are utilized as emergency power for the City's 39 lift stations and
standardization is critical in emergency response for equipment. Nine of the
eleven generators which the City maintains for emergency purposes are
Caterpillar. At such time, the non - Caterpillar generators needing future re-
placement will be earmarked for standardization, as well.
The attached detailed analysis contains additional information on the rec-
ommendation for replacement. Based on that analysis, the lowest annual
cost option that meets the City's needs is to replace the existing generator
with a new generator.
The quote for a Caterpillar 80KW Generator from Ziegler is $36,773.55.
Staff is recommending the purchase from this vendor. The bid /quote is as
follows:
4
Vendor
Ziegler
Make /Model
Caterpillar D80 -4
Price
$41,408.00
Trade -in
$7,000.00
Sub- Total
$34,408.00
Tax 6.875%
$2,365.55
Total
$36,773.55
The total cost for the generator is $36,773.55. The Equipment Plan bud-
geted $40,170.00 for this purchase.
3. 1995 JCB Backhoe (Unit #785)
The Streets, Utilities and Parks Divisions of Public Works currently utilize a
backhoe for utility installation and repairs. The existing 1995 JCB backhoe
is not equipped with a frost bucket for winter operations, a compactor and
an integrated tool carrier to accommodate additional apparatus. It is also
not equipped with the sufficient boom height to load spoils directly into
trucks nor is it capable of adequately placing and removing shoring and
trenching equipment as required by OSHA.
The existing 1995 JCB backhoe is 16 years old and has accumulated 4,154
hours. This piece of equipment will require $42,885.05 of repairs in the
near future to continue use. Additionally, if the repairs were performed, this
piece of equipment would still not be capable of meeting OSHA require-
ments relating to trench box installation.
The attached detailed analysis contains additional information on the rec-
ommendation for replacement. Based on that analysis, staff believes the
purchase of a new backhoe is the most cost - effective option for the City.
In accordance with the City's purchasing policy, quotes were solicited
through the State of Minnesota Purchasing Program for Caterpillar, John
Deere and Case. The low quote amount of $94,699.31 was submitted by
RDO Equipment. Staff is recommending this vendor. The bids were re-
ceived as follows:
Manufacturer
John Deere
(RDO)
Case
Caterpillar
Make /Model
410
590N
430
Tractor
$78,360.00
$90,072.00
$90,670.00
Extend -a -hoe
$7,185.00
STD
$3,000.00
Multi- purpose
bucket
$3,320.00
$3,740.00
$10,160.00
Hydraulic corn-
pactor
$6,515.00
$5,497.00
$8,900.00
Ripper
$1,065.00
$1,050.00
$2,400.00
Hydraulic Coup-
ler
$3,395.00
$1596.00
$1,300.00
Rear bucket
$890.00
$791.00
$910.00
Sub -Total
$100,730.00
$102,746.00
$117,340.00
Trade
$12,100.00
$14,000.00
$14,000.00
Tax
$6,093.31
$6,101.29
$7104.63
Total
$94,699.31
$94,847.29
$110,444.63
5
The total cost for the backhoe is $94,699.31. The Equipment Plan bud-
geted $118,450.00 for the purchase.
4. 2006 Melroe Bobcat S250 (Unit # 501)
The Parks, Streets and Utilities Divisions of Public Works currently utilize
three skid loaders in our fleet. These skid loaders are relied upon daily and
are probably the most labor saving machines in our equipment fleet. Their
primary uses are to push, dig, level, backfill and grade all types of mate-
rials. Because of its compact design and zero turning radius, this machine
becomes especially effective for many tasks and projects. With our various
attachments, this piece of equipment is also used for drilling holes for post
or tree planting, trenching for drain tile, irrigation installation, sweeping,
blowing snow, milling blacktop, backfilling water and sewer line breaks,
loading trucks, removing trees and brush and other miscellaneous tasks.
The existing 2006 skid loader is five years old and has accumulated 3,169
hours. This piece of equipment will require $10,156.40 of repairs in the
near future to continue use.
The attached detailed analysis contains additional information on the rec-
ommendation for replacement. Based on that analysis, staff believes that
the purchase of a used skid loader is the most cost effective option for the
City.
In accordance with the City's purchasing policy, quotes were solicited for
new skid loaders through the State of Minnesota Purchasing Program for
Caterpillar, Melroe, John Deere and Case. In addition, staff requested used
quotes for a comparable skid loader from the same vendors. Caterpillar
was the only vendor that provided a bid for a used machine.
The low quote for a used skid loader for $11,488.15 was submitted by Zieg-
ler. Staff is recommending this vendor. The quotes were received as fol-
lows:
Skid Loader (New)
Vendor
Zie ler
RDO
St. Joseph
Lano
State Bid
Yes
Yes
Yes
Yes
Make /Model
Caterpillar
262C
John Deere
328D
Case
SV250
Bobcat
S750
Price
$43,970.00
$39,800.00
$37,894.00
$32,967.08
Trade -in
$12,000.00
$14,500.00
$16,000.00
$17,000.00
Sub -Total
$31,970.00
$25,300.00
$21,894.00
$15,967.08
Tax 6.875%
$2,197.94
$1,739.38
$1,505.21
$1,097.74
Total
$34,167.94
$27,039.38
$23,399.21
$17,064.82
Skid Loader (Used)
Vendor
Ziegler
RDO
St. Joseph
Lano
Make /Model
Caterpillar
262C
No Quote
Received
No Quote
Received
No Quote
Received
Price
$23,029.85
Trade -in
$12,000.00
Sub -Total
$11,029.85
Tax 6.875%
$758.30
Total
$11,788.15
0
The total cost for a used skid loader is $11,788.15. The Equipment Re-
placement Plan had $60,000.00 programmed for this purchase. It should
be noted that staff determined that a smaller non -track skid loader would
meet the City's current needs resulting in substantial savings.
Conclusion
Based on the City's detailed vehicle and equipment needs and financial
analysis, staff is recommending the purchase of the following:
1. One 2011 Ford F450 Utility Truck and Appurtenant Equipment
2. One 2011 Caterpillar D80 -4 Generator
3. One 2011 John Deere Backhoe
4. One (Used) 2010 Caterpillar 262C Skid Loader
ISSUES: The attached needs analysis considers each piece of equipment in the fol-
lowing categories:
1.
Refurbishing
2.
Lease /Rental Options
3.
Zero Value Operation
4.
Alternative Fuel Analysis
5.
Equipment Utilization
6.
Equipment Partnerships
7.
Used Equipment Options
8.
Alternative Annual Cost Analysis
By analyzing each of the categories and performing the cost analysis on
each piece of equipment, staff believes the best options for replacement of
the needed equipment have been provided in this report.
FINANCIAL The Equipment Replacement Plan programmed and the Revolving Equip -
IMPACT: ment Fund budgeted $453,100 for the replacement of seven pieces of
equipment. Staff recommends having the life expectancy extended for
three of these vehicles as outlined in this report. The budgeted amount for
the remaining four vehicles and equipment to be replaced is $299,990.
The replacement costs for the four proposed vehicles and equipment are
$224,959.48 which is $75,030.52 less than budgeted. The primary savings
were due to an excellent bid on the John Deere Backhoe, purchasing a
smaller used skid loader in 2011, and delaying purchase of the larger skid
loader as part of a future replacement.
ALTERNATIVES: 1. Approve a resolution authorizing the purchase of the proposed equip-
ment and trade in the existing equipment as detailed in this report.
2. Table this agenda item for a specific reason.
3. Deny this agenda item for a specific reason and provide staff with direc-
tion.
RECOMMENDED Alternative #1
MOTION:
FraW B9y1es jCitj Manager
7
of \
RESOLUTION 11 -xxx
A RESOLUTION AUTHORIZING REPLACEMENT OF 1999 F350 UTILITY TRUCK (UNIT #756), 1996
80KW CATERPILLAR GENERATOR (UNIT #776), 1995 JCB BACKHOE (UNIT #785) AND 2006
BOBCAT SKID LOADER (UNIT #501)
Motion By:
Second By:
WHEREAS, Each year the City Council adopts an Equipment Replacement Plan as part of the Capital
Improvement Program (CIP); and
WHEREAS, The 2011 Equipment Replacement Plan contemplates the replacement of:
1. 1999 Ford F350 Utility Truck (Unit #756)
2. 1996 80KW Caterpillar Generator (Unit #776)
3. 1995 JCB Backhoe (Unit #785)
4. 2001 Toro 580D Mower (Unit #504)
5. 2006 Melroe Bobcat (Unit #501)
6. 2001 Ford F350 4X4 Truck (Unit #451)
7. 2005 Ford Crown Victoria (Unit #205)
WHEREAS, Staff has determined that the useful life of the 2001 Ford F350 4X4 Truck (Unit #451) and
the 2005 Ford Crown Victoria (Unit #204) should be extended and therefore will not be
replaced in 2011; and
WHEREAS, Staff has determined that replacement of the 2001 Toro 580D Mower (Unit #504) should
be delayed until staff has evaluated private contract mowing options further; and
WHEREAS, The 2011 Equipment Replacement Plan programmed the following purchases:
1. $81,370.00 for a 1 ' / 2 Ton Utility Truck (Street & Utility Dept)
2. $40,170.00 for a 80KW Emergency Generator (Street & Utility Dept)
3. $118,450.00 for a Backhoe (Street & Utility Dept)
4. $60,000.00 Skid Loader (Parks)
WHEREAS, A detailed needs and financial analysis of each piece of equipment proposed for
replacement has been completed and was included in the agenda report; and
WHEREAS, Quotes were received through the State Purchasing Program and from non state venders
to ensure the lowest prices.
NOW THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE,
MINNESOTA as follows:
1. The recitals set forth above are incorporated herein.
2. Staff is authorized to trade -in the following equipment:
a. 1999 Ford F350 Utility Truck (Unit #756)
b. 1996 80KW Caterpillar Generator (Unit #776)
c. 1995 JCB Backhoe (Unit #785)
d. 2006 Melroe Bobcat (Unit #501)
3, Staff is authorized to purchase the following equipment:
a. 2011 Ford F450 Utility Truck from Midway Ford and appurtenant equipment from Aspen
for a cost not to exceed $81,698.47
b. 2011 Caterpillar D80 -4 Generator from Ziegler for a cost not to exceed $36,773.55
c. 2011 John Deere 410 Backhoe from RDO for a cost not to exceed $94,699.31
d. Used Caterpillar 262C Skid Loader from Ziegler for a cost not to exceed
$11,788.15
4. Collectively the pieces of equipment shall be purchased for a price not to exceed $224,959.48.
5. Funds are to be drawn from the Revolving Equipment Fund. A total of $213,171.33 (Public Works)
from account #410- 43100 -580 and $11,788.15 (Parks) from account #410- 45200 -580.
PASSED AND ADOPTED THIS 4th DAY OF APRIL 2011.
YES NO
M ser
M ser
Erickson
Erickson
Hedberg
Hedber
Keeney
Keene
Soukup
Souku
Frank Boyles, City Manager
CADocuments and Settingslcgreen\My Documents\SharePoint Drafts12011 Equipment Purchase Revised Resolution.doc
2
EQUIPMENT NEED ANALYSIS
Equipment: Ford F350 (1 Ton) Utility Truck ( #756)
Year: 1999 Mileage /Hours 127,200
I. Refurbishing Analysis:
The 1999 Ford F350 4X4 utility truck needs $6,244.88 in repairs to be retained and operational for its
intended use -see below for reference. These repairs do not take into account potential engine,
transmission and drive train failures and expenses that may occur if we retain this vehicle. Currently
this truck has accumulated 127,200 miles and the life expectancy is 10 years or 100,000 miles for this
vehicle type. Safety requirements for removal of pumps require the City to upgrade the existing
winch. The new winch exceeds the capacity of the current vehicle and therefore repair is not
recommended.
Summary of Needed Repairs for the Existing 1999 Ford F350 Utility Truck (Unit #756)
Repairs Needed
Cost for
Re airs
Projected
Labor
Cost for
Labor
Grand Total
Repairs/Labor
Front u joints
$98.62
2.0 hours
$60.00
$158.62
4x4 hubs
$440.58
2.0 hours
$60.00
$500.58
Stabilizer links
$130.84
2.0 hours
$60.00
$190.84
Tie rod ends
$464.58
3.0 hours
$90.00
$554.58
4X4 seal and o -rings
$224.00
2.0 hours
$60.00
$284.00
Rear leaf springs
$800.93
6.0 hours
$180.00
$980.93
Rear pads and rotors
$205.00
2.0 hours
$60.00
$265.00
Shifter tube
$69.40
3.0 hours
$90.00
$159.40
Ball joints
$227.79
3.0 hours
$90.00
$317.90
Front tires
$203.14
1.0 hours
$30.00
$233.14
Seat repair
$200.00
none included
$0
$200.00
Box repair
$2,400.00
in house
$0
$2,400.00
Totals
$5,464.88
26 hours
$780.00
$6,244.88
Created on 3/30/2011 10:12:00 AM
II. Lease /Rental Options:
The City retains this type of vehicle for ten years or 100,000 miles. If the City entered into a lease
option on this utility truck, it would result in a long term lease. Long term leases cost more than a
purchase.
III. Zero Value Operation:
This truck has met its life expectancy for its intended purpose. Repairs of $6,244.88 are needed to
keep this truck operational. At this point the City will receive a trade -in value of $6,000.00. To repair
this vehicle to its intended functional use would lose $6,244.88 and 6,000.00 (trade -in value) for a
total of $12,244.88. The truck is not capable of supporting the required winch system to meet current
safety requirements.
IV. Alternative Fuel Analysis:
The proposed Ford F450 is equipped with a diesel engine capable of operating on B -20 diesel fuel.
The engine is low emissions and is US EPA compliant.
V. Equipment Utilization:
This vehicle will predominantly be utilized by the Streets and Utilities Divisions of Public Works as
outlined in this report. Maintenance staff foreman meet daily to assure that all vehicles and equipment
are scheduled to their maximum potential.
VI. Equipment Partnership:
All City owned trucks are utilized on a daily basis by Public Works Maintenance Division employees.
Partnerships with other organizations with trucks are not a viable option.
VII. Used Equipment Options:
One 2010 F450 that could be modified and equipped for a cost of $96,000 was located.
VIII. Alternative Annual Cost Analysis
Staff analyzed the costs of four viable options for replacement of the backhoe. Because the backhoe
is not able to lift the safety equipment now required for deeper sewer and water repairs staff is not
recommending repair of the machine.
Option
Total Initial
PV Future
Life
Annual
Interest
Total
Cost
Trade
(yrs)
Maint Cost
Rate
Annual
Cost
New
$81,698
$6,000
12
$1,615
2
$8,785
Used
$96,000
$6,000
11
$1,615
2
$11,753
The lowest annual cost option for the City is to purchase a new F450. The state bid prices for base
model new F450's are lower than low mileage used trucks (typically with upgrades) in this class.
Created on 3/30/2011 10:12:00 AM
EQUIPMENT NEED ANALYSIS
I. Refurbishinq Analysis:
The 1996 Caterpillar 80KW generator is 15 years old and has accumulated 3710 hours. This
unit is equipped with a 480 volt electrical system and is only capable of operating 8 of the 39
City owned lift stations. Because this is emergency equipment it is critical that it be capable
of operating all lift stations.
It should be noted that the City has standardized lift station and emergency equipment to
ensure compatibility during incidents. The City's Standardized Generator is Caterpillar.
II. Lease /Rental Options:
The City intends to retain its generators for 30 years. If the City entered into a lease option on
this generator, it would result in a long term lease. Long term leases cost more than a
purchase.
III. Zero Value Operation:
In an emergency this generator is only capable of operating 8 of the 39 City owned lift
stations. The existing generator cannot be upgraded with the proper voltage to operate all of
our lift stations.
IV. Alternative Fuel Analysis:
The current generator operates on diesel fuel. The proposed 2011 Caterpillar D80 -4
generator is equipped with a diesel engine capable of operating on B -20 diesel fuel. The
engine is low emissions and is US EPA compliant.
Created on 3/30/2011 10:17:00 AM
Equipment: Caterpillar 80KW Generator
Year: 1996 Mileage /Hours 3710
This is the only engine available on this piece of equipment.
V. Equipment Utilization:
This generator is a specialized piece of equipment that is relied on by the Utilities Division of
Public Works as outlined in this report.
VI. Equipment Partnership:
This piece of equipment is heavily depended on for emergency situations, particularly during
power outages. Sharing a generator that is relied on for these situations will result in
scheduling conflicts. For this reason, partnerships with other Agencies is not a viable option.
VII. Used Equipment Options:
A 2005 Caterpillar generator meeting the City requirements was located for a total cost of
$21,737. Based on existing hours this generator would have an expected life of 15 years
VIII. Alternative Annual Cost Analysis
Staff analyzed the costs of two viable options for replacement of the emergency generator.
Option
Total Initial
PV Future
Life
Annual
Interest
Total
Cost
Trade
(yrs)
Maint Cost
Rate
Annual
Cost
New
$36,773
$3,000
30
$2,500
2
$4,006
Used
$21,737
$3,000
15
$2,500
2
$3,957
The used generator has an annual cost of $49 less per year than the new generator.
Because the used generator only has a 15 year life expectancy staff is recommending
purchase of the new generator.
Created on 3/30/2011 10:17:00 AM
EQUIPMENT NEED ANALYSIS
I. Refurbishing Analysis
The 1995 JCB backhoe needs $42,885.05 in repairs to be retained and operational for its
intended use —see below for reference. These repairs do not take into account that potential
engine, transmission and drive train failures and expenses that may occur if we retain this
piece of equipment. Currently this machine has accumulated 4,154 hours and the
manufacturer's life expectancy is 13 years or 4,000 hours. To refurbish and extend the life
expectancy of this back hoe is not cost effective.
Summary of Needed Repairs for the Existing 1995 JCB Backhoe
Repairs
Needed
Cost for
Repairs
Projected
Labor
Cost for
Labor
Grand Total
Repairs/Labor
Bucket teeth
$321.01
3.5 hours
$105.00
$426.01
Front grill
$6,963.54
14 hours
$420.00
$7,383.54
Stabilizer pads
$3,385.97
28 hours
$840.00
$4,225.97
Door frame
$2,515.15
14 hours
$420.00
$2,935.15
Bucket pins
$3,962.59
28 hours
$840.00
$4,802.59
Cylinder pins
$18,409.92
56 hours
$1,680.00
$20,089.92
Tires
$2,601.87
out source
$420.00
$3,021.87
Totals
$38,160.05
143.5 hours
$4,725.00
$42,885.05
Staff doesn't recommend this option due to cost and safety concerns. The existing backhoe
is unable to move the safety trench box mandated by OSHA for deeper sanitary sewer and
watermain repairs. Council will recall we were fined as a result of this.
Created on 3/30/2011 10:22:00 AM
Equipment: JCB Backhoe ( #785)
Year: 1995 Mileage /Hours 4,154
II. Lease /Rental Options:
The City retains this type of equipment for 13 years or 4,000 hours. If the City entered into a
lease option on this backhoe it would result in a long term lease. Long term leases cost more
than a purchase. The cost of leasing the backhoe annually is not cost effective. This
equipment is used for emergency response so the lease would need to be annual.
The Streets and Utilities Division of Public Works conducts approximately 50 utility repairs
annually. To rent a backhoe to perform the excavation for these repairs would cost an
average of $850.00 per repair or $42,500 annually.
III. Zero Value Operation:
This backhoe has met its life expectancy for its intended purpose. Repairs of $42,885.05 are
needed to keep this piece of equipment operational. At this time, the City will receive a trade -
in value of $12,100.00. To repair this backhoe to its intended functional use would lose
$42,885.05 and $12,100.00 (trade -in value) for a total of $54,985.05. In addition to this cost
retaining this machine to a point where it no longer functions will result in additional costs for
rentals or contracting out utility repairs.
IV. Alternative Fuel Analysis:
The current backhoe operates on diesel fuel. The proposed John Deere backhoe is equipped
with a diesel engine capable of operating on B -20 fuel. The engine is low emissions and is
US EPA compliant.
V. Equipment Utilization:
This backhoe is a specialized piece of equipment and is utilized by Parks, Streets and
Utilities Divisions of Public Works as outlined in this report.
VI. Equipment Partnership:
This piece of equipment is heavily depended on for emergency situations relating to utility
repairs. Sharing equipment that is relied on for these situations will result in scheduling
conflicts. For this reason, partnerships with other agencies are not a viable option.
VII. Used Equipment Options:
Quotes were obtained for three used backhoes. (Caterpillar, John Deere and Case) The
lowest cost quoted with the required used equipment is about $112,000. The State Bid
contract for new equipment actually provides lower costs than used or new non -state bid
options.
VIII. Alternative Annual Cost Analysis
Staff analyzed the costs of four viable options for replacement of the backhoe. Because the
backhoe is not able to lift the safety equipment now required for deeper sewer and water
repairs staff is not recommending repair of the machine.
Option
Total Initial
Cost
PV Future
Trade
Life
(yrs)
Annual
Maint Cost
Interest
Rate
Total
Annual
Cost
New
$94,699
$12,000
13
$1,500
2
$8,785
Used
$112,325
$12,000
11
$1,500
2
$11,753
Rental (r )
$32,760
$32
Rental (Inc)*
$42,500
$42,500
Rental as needed based on 50 incidents with avg cost of $850 /incident
The lowest annual cost option for the City is to purchase a new backhoe.
Created on 3/30/2011 10:22:00 AM
EQUIPMENT NEED ANALYSIS
Equipment: Melroe Bobcat S250 ( #501)
Year: 2006 Mileage /Hours 3169
I. Refurbishing Analysis:
The 2006 Melroe Bobcat S250 skid loader needs $9,946.40 in repairs to be retained and
operational for its intended use —see below for reference. These repairs do not take into
account the potential engine, transmission and drive train failures and expenses that may
occur if we retain this piece of equipment. Currently, this skid loader has accumulated 3,169
hours and the life expectancy is six years or 3,000 hours.
Summary of Needed Repairs for the existing 2006 Melroe Bobcat
Repairs
Needed
Cost for
Repairs
Projected
Labor
Cost for
Labor
Grand Total
Repairs/Labor
Fluids /filters
$243.92
7 hours
$210.00
$453.92
Step alarm
$184.87
7 hours
$210.00
$394.87
Quick- attach
$1,998.33
14 hours
$420.00
$2,418.33
Drive chains
$5,626.50
28 hours
$840.00
$6,466.50
Wiper motor
$107.78
3.5 hours
$105.00
$212.78
Totals
$8,161.40
59.5 hours
$1,785.00
$9,946.40
II. Lease /Rental Options:
The City retains its skid loaders for six years or 3,000 hours. If the City entered into a lease
option on skid loaders, it would result in a long term lease. Because this skid loader is utilized
year- around the annual cost would be $21,000 for a 12 month rental /lease.
Created on 3/30/2011 10:08:00 AM
During the summer months the City does take advantage of renting an additional skid loader
to utilize during peak work demands.
III. Zero Value Operation:
This skid loader has met its life expectancy for its intended purpose. Repairs of $9,946.40 are
needed to keep this machine operational. At this time, the City will receive a trade -in value of
$12,000.00. To repair this piece of equipment to its intended functional use would lose
$9,946.40 and $12,000.00 (trade -in) for a total of $21,946.40. In addition to this cost,
retaining this skid loader to a point where it no longer functions could result in additional costs
for rentals.
IV. Alternative Fuel Analysis:
The proposed Caterpillar 262C is equipped with a diesel engine capable of operating on B -20
fuel. The engine is low emissions and is US EPA compliant. The proposed Caterpillar 262C
skid loader is equipped with a foot control throttle to vary the engine speed and minimize fuel
consumption. Staff will evaluate fuel savings against our currently owned skid loaders by
utilizing past history documented in our Fleet program.
V. Equipment Utilization:
The skid loaders are utilized by all Public Works Maintenance Divisions for tasks as outlined
in this report. Maintenance staff foreman meet daily to assure that all vehicles and equipment
are scheduled to their maximum potential.
VI. Equipment Partnership:
With the heavy utilization of the skid loaders needed by the City Maintenance Divisions, the
occasional shortage of machines and the need to rent additional skid loaders during peak
work demands, partnerships with other agencies is not a viable option.
VII. Used Equipment Options:
Staff researched the possibility of purchasing a slightly used skid loader vs. obtaining a new
machine. A used 2009 Caterpillar 262C can be purchased for a cost of $11,788.15. This skid
loader has been rented previously by the City and we are familiar with the maintenance
history.
VIII. Alternative Annual Cost Analysis
Staff analyzed the costs of four viable options for replacement of the skid loader.
Option
Total Initial
Cost
PV Future
Trade
Life
(yrs)
Annual
Maint Cost
Interest
Rate
Total
Annual
Cost
New
$17,064
$10,000
6
$3,500
2
$4,761
Used
$11,788
$10,000
4
$3,500
2
$3,969
Rental r
$21,000
$21,000
Re air
$9,946
1 $2,500 1
1
$3,500
$11,094
The lowest annual cost option for the City is to purchase a used skid loader.
Created on 3/30/2011 10:08:00 AM