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Home My WebLink About6.f. 2019 Proposed Equipment PurchasesI:\City Clerk\Agenda Items\Approved Items\6.f. 2019 Proposed Equipment Purchases.docx EXECUTIVE SUMMARY City Council Meeting: January 15, 2019 AGENDA ITEM: 2019 Proposed Equipment Purchases AGENDA SECTION: Consent PREPARED BY: Brian Erickson, PE, Public Works Director / City Engineer AGENDA NO. 6.f. ATTACHMENTS: 2019 Equipment Purchase Recommendation Report APPROVED BY: LJM RECOMMENDED ACTION: Motion to Declare Surplus Property and Authorize the Purchase of Equipment as outlined the 2019 Equipment Purchase Recommendation Report ISSUE Staff is seeking City Council authorization to purchase equipment as outlined in the 2019 Capital Improvement Program (CIP), 2019 operating budgets, and the 2019 Equipment Purchase Recommendation Report (Report). BACKGROUND In accordance with the adopted guidelines for equipment replacement in the Public Works Quality Standards, staff has developed a list of equipment proposed for replacement in 2019. This list represents equipment with a score of 30+ 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 initially adopted in 2012. The goal was to establish a data-driven, objective formula for determining when equipment should be considered for replacement. Each unit is assigned an overall score based on the parameters of age, mileage, condition, service type, criticality, maintenance cost and reliability. Equipment with a score of 30 or greater is generally scheduled for replacement. The attached Report provides detailed information about the units that are proposed to be replaced in 2019, as well as information about two new generators that are included in the 2019 CIP. 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 the equipment purchases is $511,308 which is 27.5% less than the net cost of $706,000 approved in the 2019 CIP. The primary savings comes from potentially retaining and rehabbing the Jetter truck instead of purchasing a new one (this option is described in more detail in the Report). The increase of televising sanitary lines rather than jetting has reduced the need for a new vehicle. We also do not need to purchase the equipment trailer, which was originally approved for purchase in 2018 but put on hold in order to evaluate it further. Funds were included in the 2019 CIP in case the purchase was delayed a year, but the trailer was purchased in December 2018 for $6,940. 2 As a reminder, all light-duty trucks, vans and SUVs are now replaced in accordance with the Council- approved leasing plan. Those vehicles are not shown in the Report, but they are included in the 2019 CIP. The vehicles planned for replacement via lease in 2019 are: • 2011 1-ton pickup with extended cab (Public Works) • 2011 1-ton pickup (Public Works) • 2003 full size passenger van (Parks & Rec) • 2013 minivan (Parks & Rec) • 2008 small pickup (Building Inspections) RECOMMENDATION Staff recommends City Council authorization to declare the existing equipment as surplus property, and to purchase replacement units as outlined in the attached 2019 Equipment Purchase Recommendation Report. I:\City Clerk\Agenda Items\Approved Items\6.f. 2019 Proposed Equipment Purchases - Attach 1.docx 2019 Equipment Purchase Recommendation Report I:\City Clerk\Agenda Items\Approved Items\6.f. 2019 Proposed Equipment Purchases - Attach 1.docx Proposed Equipment Replacement Summary Unit Description Age (Years) Mileage /Hours Score Original Purchase Cost CIP Approved Net Cost Actual Anticipated Net Cost 0123 Blower Attachment 11 n/a 40 $1,598 $6,000 $4,208 0503 Equipment Trailer 20 n/a 46 $4,177 $12,000 $0 8418 Skid Steer w/Blade 11 2,270 30 $32,822 $55,000 $32,600 8406 Tractor 12.5 3,864 34 $42,363 $83,000 $83,000 8342 Utility Truck w/Crane 12 50,825 32 $93,402 $95,000 $116,500 8445 Jet Truck 13 3,216 31 $172,453 $265,000 $100,000 8058 NEW Portable Generator n/a n/a n/a n/a $90,000 $75,000 GEN- W7 NEW Standby Generator (Well 7) n/a n/a n/a n/a $100,000 $100,000 Totals $346,815 $706,000 $511,308 I:\City Clerk\Agenda Items\Approved Items\6.f. 2019 Proposed Equipment Purchases - Attach 1.docx 2008 SNOWBLOWER ATTACHMENT (0123) DESCRIPTION • Purchase cost: $1,598 • CIP Approved Amount: $6,000 • Quoted Replacement Price: $5,208 • Quoted Trade Value: $1,000 CONDITION • 11 years old • Overall score: 40 • Overall condition score: 3.0 (moderate wear) • Maintenance costs to-date: $3,304 (207% of purchase cost) USED FOR • Downtown snow removal • Ice rink maintenance • Snow removal on trails DESIRED SPECIFICATIONS FOR REPLACEMENT UNIT • Similar unit STAFF RECOMMENDATION • Purchase new snowblower attachment for quoted net cost of $4,208 after $1,000 trade-in of current unit • Funding from Equipment CIP I:\City Clerk\Agenda Items\Approved Items\6.f. 2019 Proposed Equipment Purchases - Attach 1.docx 2008 SKID STEER w/BLADE (8418) DESCRIPTION • 2,270 hours • Purchase Price: $32,822 • CIP Approved Amount: $60,000 • Quoted Replacement Price: $49,600 • Quoted Trade Value: $17,000 CONDITION • 11 years old • Overall score: 30 • Condition score: 4.0 (significant wear) • Maintenance costs to-date: $15,583 (47% of purchase cost) USED FOR • Smaller earth-moving tasks that don’t require full-size backhoe or loader • Moving planters, plows, and other mid-size items • Snow removal (ice rinks, parking lots and trails) • Milling pavement • Digging holes for tree planting DESIRED SPECIFICATIONS FOR REPLACEMENT UNIT • Similar unit with plow blade STAFF RECOMMENDATION • Purchase new skid steer for quoted net cost of $32,600 after $15,000 trade-in of current unit (includes $6,900 for plow blade) • Funding from Equipment CIP I:\City Clerk\Agenda Items\Approved Items\6.f. 2019 Proposed Equipment Purchases - Attach 1.docx 2006 TRACTOR (8406) DESCRIPTION • 3,864 hours • Purchase Price: $42,363 • CIP Approved Amount: $90,000 • Estimated Replacement Price: $90,000 • Estimated Trade Value: $7,000 CONDITION • 12 years old • Overall score: 34 • Condition score: 4.0 (significant wear, may need new clutches) • Maintenance costs to-date: $22,199 (52% of purchase cost) USED FOR • Ballfield dragging/grading • Fertilizer spreading • Aerating • Sweeping ice rinks and trails in winter DESIRED SPECIFICATIONS FOR REPLACEMENT UNIT • Similar unit STAFF RECOMMENDATION • Purchase new tractor for estimated net cost of $83,000 after estimated $7,000 trade- in of current unit • Funding from Equipment CIP I:\City Clerk\Agenda Items\Approved Items\6.f. 2019 Proposed Equipment Purchases - Attach 1.docx 2008 UTILITY TRUCK w/CRANE (8342) DESCRIPTION • 50,825 miles • Purchase Price: $93,402 • CIP Approved Amount: $110,000 • Quoted Replacement Price: $131,500 • Estimated Salvage Value: $15,000 CONDITION • 12 years old • Overall score: 32 • Condition score: 4.0 (significant wear, rust on frame of box) • Maintenance costs to-date: $28,019 (30% of purchase cost) USED FOR • Daily utility appointments and activities • Manhole and lift station maintenance • Assist mechanics with stranded vehicles DESIRED SPECIFICATIONS FOR REPLACEMENT UNIT • Similar unit STAFF RECOMMENDATION • Purchase new unit for estimated net cost of $116,500 after estimated $15,000 trade- in of current unit • Funding from Water, Sewer and Storm Utility Funds I:\City Clerk\Agenda Items\Approved Items\6.f. 2019 Proposed Equipment Purchases - Attach 1.docx 2006 JETTER TRUCK (8445) DESCRIPTION • 3,216 hours • Purchase Price: $172,453 • CIP Approved Amount: $290,000 • Estimated Rehabilitation Price: $100,000 CONDITION • 13 years old • Overall score: 31 • Condition score: 3.5 (moderate wear, rust on tank area) • Maintenance costs to-date: $31,562 (18% of purchase cost) USED FOR • Cleaning sanitary and storm sewer lines STAFF RECOMMENDATION • Retain and refurbish existing unit for estimated cost of $100,000 o Repaint unit o New pumps, hoses and controls • New unit is not necessary. The televising program has led to jetting much less of the system, thus reducing the wear on this piece of equipment. • Staff prefers the features on this unit vs. the newer models • Funding from Sewer and Storm Utility Funds • Apply $190,000 savings to future purchase of televising unit and/or future engine refurbish (if needed) I:\City Clerk\Agenda Items\Approved Items\6.f. 2019 Proposed Equipment Purchases - Attach 1.docx NEW PORTABLE GENERATOR (8058) DESCRIPTION • CIP Approved Amount: $90,000 • Estimated Replacement Price: $75,000 USED FOR • Emergency power at productions wells and lift stations STAFF RECOMMENDATION • Purchase smaller portable unit due to limited storage space and site restrictions at Well 16 (smaller site makes it difficult to maneuver a large generator on a trailer) • Funding from Water, Sewer and Storm Utility Funds • Apply $15,000 savings to future purchase of standby generator at Well 16 I:\City Clerk\Agenda Items\Approved Items\6.f. 2019 Proposed Equipment Purchases - Attach 1.docx NEW STANDBY GENERATOR (WELL 7) DESCRIPTION • CIP Approved Amount: $100,000 • Estimated Replacement Price: $100,000 USED FOR • On-site emergency power at Well 7, which is the master control center for the SCADA system STAFF RECOMMENDATION • Purchase standby generator similar to the one at Well 14 (pictured) • Funding from Water Utility Fund I:\City Clerk\Agenda Items\Approved Items\6.f. 2019 Proposed Equipment Purchases - Attach 1.docx APPENDIX A 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