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Home My WebLink About9.b. 2018 Proposed Public Works Equipment PurchasesI:\City Clerk\Agenda Items\Approved Items\9.b. 2018 Proposed Public Works Equipment Purchases.docx EXECUTIVE SUMMARY City Council Regular Meeting: December 19, 2017 AGENDA ITEM: 2018 Proposed Public Works Equipment Purchases AGENDA SECTION: New Business PREPARED BY: Brian Erickson, PE, Director of Public Works/City Engineer AGENDA NO. 9.b. ATTACHMENTS: 2018 Equipment Purchase Recommendation Report APPROVED BY: LJM RECOMMENDED ACTION: Motion to Declare Surplus Property and Authorize the Purchase of Equipment as outlined the 2018 Equipment Purchase Recommendation Report ISSUE Staff is seeking City Council authorization to purchase equipment as outlined in the 2018 – 2027 Capital Improvement Program (CIP), 2018 operating budgets and the 2018 Equipment Purchase Recommendation Report. BACKGROUND In accordance with the adopted guidelines for equipment replacement as outlined in the Public Works Quality Standards, staff has developed a list of equipment proposed for replacement in 2018. This list represents equipment with a score of 30+ in all but one case as described in the Equipment Evaluation Matrix (Matrix) which is shown in Appendix A of the report. The Matrix was developed with Council input and direction and ultimately adopted in 2012. The goal was to establish a data-driven, objective formula for determining when equipment should be considered for replacement. Based on a number of parameters, each unit is assigned an overall score from a minimum of 7 and no maximum limit. Equipment with a score of 30 or greater should be considered for replacement. The attached Equipment Purchase Recommendation Report provides detailed information about the existing units that are proposed to be replaced, as well as a staff recommendation for the replacement of each unit. All quoted replacement pricing is from State Bid vendors, and includes all applicable taxes and licensing. Page two of the report shows the existing equipment that is proposed to be declared surplus property and replaced as recommended in the report. Surplus property will be disposed of through dealer trade or auction to maximize the salvage value. All replacement units will be purchased from State Contract vendors. The total anticipated net cost for vehicle replacement is $489,115 which is $3,615 or 0.74% higher than the net cost approved in the CIP of $485,500. Staff is reviewing the potential for reducing this difference. In light of the vehicle leasing program, the potential to save on equipment cost with early orders, and to ensure operational availability of equipment, staff is bringing the equipment purchase recommendations to Council earlier than has happened historically. Because the Equipment Evaluation Process has been well- 2 established and the replacement criteria have now been in place a number of years, staff found it most efficient to bring the report and recommendations directly to Council at a regular meeting. Below is a summary of the equipment recommended for replacement, and the resulting staff recommendations. Item 1 – Equipment Trailer (0503) This 19-year old trailer is used for transporting skid steers and other small equipment to various job sites. The CIP provides $18,500 from the Equipment CIP and $1,500 in other funding for a total of $20,000. The estimated replacement cost of $15,000 and the anticipated salvage value of $1,500 results in an estimated net cost of $13,500 to replace this trailer. This is $6,500 less that the CIP funding. Item 2 – Groundsmaster Mower (8068) This 10-year old mower is used for daily mowing of athletic fields and parks as needed. The CIP provides $77,000 from the Equipment CIP and $8,000 in other funding for a total of $85,000. The estimated replacement cost of $105,700 and the anticipated trade-in value of $7,000 results in an estimated net cost of $98,700 to replace this mower. This is $13,700 more than the CIP funding, primarily due to new government-regulated emissions standards for this type of equipment. It should be noted that this overage is covered by lower anticipated net costs on other equipment to be purchased in 2018. By ordering this piece of equipment before 2018, the city will likely realize a cost savings of $1,000 to $1,500. Item 3 – Trash Pump (8088) Included for replacement is a 29-year old trash pump with an estimated replacement cost of $50,000, which was updated from last year based on the quotes received. At the time, staff recommended replacement be deferred since this unit was expected to remain in adequate working condition. However, with the consecutive wet summers of 2016 and 2017 and the emergency pumping that occurred this year, staff is recommending that one of these pumps be replaced in 2018 and the other in 2019. The approved operating budgets include funding for this pump with $16,600 from the Water Utility, $16,700 from the Sewer Utility and $16,700 from the Storm Water Utility for a total of $50,000. The estimated replacement cost is $44,000 and anticipated salvage value is $1,500 resulting in an estimated net cost of $42,500. This is $7,500 less than the budgeted funding. It should be noted that this pump was not moved from the 2017 to the 2018 CIP; however, the operating budgets do include this purchase. Item 4 – Trackless Sidewalk Plow (8417) This 14-year old piece of equipment is used for snow removal operations and minor sweeping tasks. Staff is proposing to replace it with a similar unit. In addition, a snow blower attachment is being proposed for purchase as well to allow for more versatility in snow removal operations. The CIP provides $130,000 from the Equipment CIP and $15,000 in other funding for a total of $145,000. The estimated cost of $131,049 and the anticipated trade-in value of $9,000 results in an estimated net cost of $122,049. This is $22,951 less than the CIP funding. Item 5 – Skid Steer (8420) This 10-year old piece of equipment is used for various tasks including smaller earth moving work that doesn’t require a full-size backhoe or front-end loader; moving planters, plows and other mid-sized items; and downtown snow removal. Staff is recommending this item be replaced with a similar unit that has tracks instead of tires. This will allow for easier use on turf such as mowing around ponds and embankments. This will not preclude its use in snow removal. In addition, staff is proposing the purchase of a jackhammer and brush removal attachments which can be used on either skid steer. The CIP provides $15,000 from the Equipment CIP, $50,000 from the Storm Water Utility and $5,000 in other funding for a total of $70,000. The estimated cost of $65,518 and the anticipated trade-in value of $20,218 results in an estimated net cost of $45,300. This is $24,700 less than the CIP funding. 3 Item 6 – Single Axle Dump Truck (8436) This 13 year old truck is used for snow plowing as well as hauling dirt, rock and asphalt. It should be noted that replacement of the hydraulic pump (a substantial cost) is anticipated in the near term. Staff is recommending the purchase of a similar single-axle dump truck to replace this unit. The CIP provides $145,000 from the Equipment CIP and $35,000 in other funding for a total of $180,000. The estimated cost of $205,066 and the anticipated trade-in value of $38,000 results in an estimated net cost of $167,066. This is $12,934 less than the CIP funding. It should be noted that ordering this truck in 2017 will insure that it is prepared and ready for the 2018-2019 winter. Vehicle Lease Finally, as was discussed at the October 9, 2017 Work Session, staff has been moving the vehicle leasing program forward. Currently, Enterprise Fleet Management has the necessary information to place orders for the 2018 light truck and vehicle fleet. Those vehicles are not shown in the 2018 Equipment Purchase Recommendation Report; however they are detailed in the 2018-2027 Capital Improvement Plan. It is anticipated that these vehicles will be available in the second quarter of 2018. Until that time the staff will have access to the vehicles being replaced. The vehicles planned for replacement in 2018 are: • 2003 1-Ton Pickup with Dump body • 2006 ½-Ton Extended Cab Pickup • 2006 1-Ton Pickup with Dump body • 2007 1-Ton Pickup • 2006 ½-Ton Extended Cab Pickup These replacements do not include any Police Department vehicles, as they are being pursued via a separate agreement with Enterprise Fleet Management. SUMMARY Staff is requesting City Council authorization to declare the existing equipment as surplus property, and to purchase replacement units as outlined in the attached 2018 Equipment Purchase Recommendation Report. Page 1 I:\City Clerk\Agenda Items\Approved Items\9.b. 2018 Proposed Public Works Equipment Purchases - Attachment 1.docx 2018 Equipment Purchase Recommendation Report Page 2 I:\City Clerk\Agenda Items\Approved Items\9.b. 2018 Proposed Public Works Equipment Purchases - Attachment 1.docx Proposed Equipment Replacement Summary Unit Description Age (Years) Mileage /Hours Score Purchase Cost Estimated Replacement Cost Updated Replacement Cost Anticipated Salvage/Trade- in Value Anticipated Net Cost 0503 Equipment Trailer 19 n/a 43 $4,176 $20,000 $15,000 $1,500 $13,500 8068 Groundsmaster Mower 10 4,033 34 $73,653 $85,000 $105,700 $7,000 $98,700 8088 Trash Pump 29 1,476 47 $4,256 $50,000 $44,000 $1,500 $42,500 8417 Sidewalk Plow & Blower 14 1,282 32 $74,336 $145,000 $131,049 $9,000 $122,049 8420 Skid Steer 10 1,774 29 $32,416 $70,000 $65,518 $20,218 $45,300 8436 Single Axle Dump Truck 13 52,247 32 $126,878 $180,000 $205,066 $38,000 $167,066 Totals $550,000 $566,333 $77,218 $489,115 Net Cost Approved in CIP $485,500 Page 3 I:\City Clerk\Agenda Items\Approved Items\9.b. 2018 Proposed Public Works Equipment Purchases - Attachment 1.docx 1999 EQUIPMENT TRAILER (0503) DESCRIPTION • Purchase cost: $4,176 • CIP Replacement Price: $20,000 • Quoted Replacement Price: $15,000 • Estimated Salvage Value: $1,500 CONDITION • 19 years old • Overall score: 43 • Overall condition score: 4.0 (significant wear) • Maintenance costs to-date: $6,678 • Maintenance issues: Decking in poor condition and will need to be replaced USED FOR • Hauling skid steers and other small equipment to job sites DESIRED SPECIFICATIONS FOR REPLACEMENT UNIT • 16 feet long x 8.5 feet wide • Oak decking STAFF RECOMMENDATION • Purchase similar unit for estimated net cost of $13,500 after $1,500 auction of current unit • Funding from Equipment CIP Fund Page 4 I:\City Clerk\Agenda Items\Approved Items\9.b. 2018 Proposed Public Works Equipment Purchases - Attachment 1.docx 2008 GROUNDSMASTER MOWER (8068) DESCRIPTION • 2008 Toro Groundsmaster • 4,033 hours • Purchase Price: $73,653 • Estimated Replacement Price: $105,700 • Estimated Trade-in Value: $7,000 CONDITION • 10 years old • Overall score: 34 • Condition score: 4.5 (extreme wear) • Maintenance costs to-date: $32,413 USED FOR • Daily mowing of athletic fields RECOMMENDED SPECIFICATIONS FOR REPLACEMENT UNIT • Toro Groundsmaster with safety enclosure • 16-foot cutting width • 1” – 6” cutting heights in 0.5” increments STAFF RECOMMENDATION • Purchase Toro Groundsmaster for estimated net cost of $98,700 after $7,000 trade- in of current unit • Funding from Equipment CIP Fund Page 5 I:\City Clerk\Agenda Items\Approved Items\9.b. 2018 Proposed Public Works Equipment Purchases - Attachment 1.docx 1989 LARGE (6”) TRASH PUMP (8088) DESCRIPTION • 1,476 hours • Purchase cost: $4,256 • Estimated Replacement Price: $44,000 • Estimated Salvage Value: $1,500 CONDITION • 29 years old • Overall score: 47 • Overall condition score: 3.0 (moderate wear) • Maintenance costs to-date: $2,642 USED FOR • Pumping ponds to prevent flooding STAFF RECOMMENDATION • Replace with updated pump to accommodate the increasing need to pump landlocked ponds. This unit is still serviceable, but since both pumps are more than 22 years old, we need newer, reliable equipment to deal with potential emergency flooding situations. The other pump is currently scheduled for replacement in 2019. • Purchase similar unit for estimated net cost of $42,500 after estimated $1,500 auction of current unit • Funding from Water Utility, Sewer Utility and Storm Utility funds Page 6 I:\City Clerk\Agenda Items\Approved Items\9.b. 2018 Proposed Public Works Equipment Purchases - Attachment 1.docx 2003 TRACKLESS SIDEWALK PLOW (8417) DESCRIPTION • 1,282 hours • Purchase Price: $74,336 • Estimated Replacement Price: $131,049 • Estimated Trade Value: $9,000 CONDITION • 14 years old • Overall score: 32 • Condition score: 4.5 (extreme wear) • Maintenance costs to-date: $21,793 USED FOR • Plowing 5-foot sidewalks • Can be used for minor sweeping tasks (trails, boulevards) DESIRED SPECIFICATIONS FOR REPLACEMENT UNIT • Replace with similar Trackless unit with 60” wide snow blower STAFF RECOMMENDATION • Purchase Trackless plow for estimated net cost of $122,045 after estimated $9,000 trade-in of current unit • Funding from Equipment CIP Fund Page 7 I:\City Clerk\Agenda Items\Approved Items\9.b. 2018 Proposed Public Works Equipment Purchases - Attachment 1.docx 2008 SKID STEER (8420) DESCRIPTION • 1,774 hours • Purchase Price: $32,416 • Estimated Replacement Price: $65,518 • Estimated Trade Value: $20,218 CONDITION • 10 years old • Overall score: 29 • Condition score: 4.0 (significant wear) • Maintenance costs to-date: $16,540 USED FOR • Smaller earth-moving tasks that don’t require full-size backhoe or loader • Moving planters, plows, and other mid-size items • Downtown snow removal DESIRED SPECIFICATIONS FOR REPLACEMENT UNIT • Similar unit with tracks instead of tires, so it can be used for mowing/brushing around pond embankments • Jackhammer and brush attachments STAFF RECOMMENDATION • Purchase new skid steer with tracks for estimated net cost of $45,300 after estimated $20,218 trade-in of current unit • Funding from Equipment CIP and Storm Utility fund Page 8 I:\City Clerk\Agenda Items\Approved Items\9.b. 2018 Proposed Public Works Equipment Purchases - Attachment 1.docx 2005 SINGLE-AXLE DUMP TRUCK (8436) DESCRIPTION • 52,247 miles • Purchase Price: $126,878 • Estimated Replacement Price: $205,070 • Estimated Trade Value: $31,000 CONDITION • 12 years old • Overall score: 32 • Condition score: 4.5 (extreme wear) • Maintenance costs to-date: $45,516 • Maintenance issues: Will need new hydraulic pump soon USED FOR • Plowing • Hauling gravel, dirt, asphalt, etc. STAFF RECOMMENDATION • Purchase single-axle dump truck for estimated net cost of $167,066 after estimated $38,000 trade-in of current unit • Funding from Equipment CIP Fund Page 9 I:\City Clerk\Agenda Items\Approved Items\9.b. 2018 Proposed Public Works Equipment Purchases - Attachment 1.docx Appendix A Page 10 I:\City Clerk\Agenda Items\Approved Items\9.b. 2018 Proposed Public Works Equipment Purchases - Attachment 1.docx 1 2 3 4 5 AGE One point for each year of chronological age, based on in- service date. Light duty vehicles and pickups - 1 point for every 10,000 miles Plow trucks - 1 point for every 15,000 miles Off-road equipment over 150 hp - 1 point for every 1,000 hours Off-road equipment under 150 hp - 1 point for every 500 hours CONDITION This category takes into consideration body condition, rust, interior condition, accident history and anticipated repairs.Like New Slight Wear / Few Deficiencies Moderate Wear / Some Deficiencies Significant Wear / Multiple Deficiencies Extreme Wear / Numerous Deficiencies SERVICE TYPE 1, 2, or 3 points based on how the vehicle is used.Administrative or Infrequent Use Frequent Light Duty Frequent Heavy Duty REDUNDANCY (CRITICAL FUNCTION) This category takes into consideration the vehicle function and the effects of downtime on overall service levels. More than one same unit. Service levels unaffected by downtime. One other same unit. Service levels slightly affected by downtime. One other similar unit. Service levels moderately affected by down time Only unit of this type, but easily rentable. Service levels moderately affected by downtime. Specialized and not rentable. Service levels significantly affected by downtime. MAINTENANCE AND REPAIR Points are assigned based on the total M&R costs as a percentage of the vechicle cost. One point for each 10% step (i.e. 8 points if M&R is 80% of original cost, no limit) Less than 20% of the vehicle cost Between 20% and 30% of the vehicle cost Between 30% and 40% of the vehicle cost Between 40% and 50% of the vehicle cost Greater than 50% of the vehicle cost RELIABILITY Year-Round Equipment Less than 5 hours per year Between 5 and 10 hours per year More than 10 hours per year RELIABILITY Seasonal Equipment Less than 3 hours per year Between 3 and 6 hours per year More than 6 hours per year 1, 3, or 5 points based on how often the vehicle is out of service for repairs. This excludes routine maintenance and repairs due to accidents. Equipment Evaluation Matrix Category Definitions Points MILES / HOURS