HomeMy WebLinkAbout6.d. 2021 Proposed Front End Loader PurchaseI:\City Clerk\Agenda Items\Approved Items\6.d. 2021 Proposed Front End Loader Purchase.docx
EXECUTIVE SUMMARY
City Council Meeting: November 4, 2020
AGENDA ITEM: 2021 Proposed Front End Loader Purchase AGENDA SECTION:
Consent
PREPARED BY: Brian Erickson, PE, Public Works Director / City
Engineer
Jim Koslowski, Public Works Supervisor
Debra Sisneros, Public Works Coordinator
AGENDA NO. 6.d.
ATTACHMENTS: 2021 Front End Loader Purchase
Recommendation Report APPROVED BY: LJM
RECOMMENDED ACTION: Motion to Declare Surplus Property and Authorize the Purchase
of a Front End Loader as outlined the 2021 Front End Loader Purchase Recommendation
Report
BACKGROUND
Staff is seeking City Council early authorization to purchase a front end loader as outlined in the 2021
Capital Improvement Program (CIP), 2021 operating budgets, and the 2021 Front End Loader Purchase
Recommendation Report (attached).
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 2021. 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 and 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 is only for the front-end loader and information
for the other equipment will be provided during the full CIP discussion in December.
The attached Report provides detailed information about the front-end loader and staff is requesting
authorization prior to December 1, 2020 to avoid anticipated cost increases occurring on December 1,
2020. Page two of the Report shows the details for the loader proposed to be declared surplus property
and replaced as recommended. Surplus property will be disposed of through dealer trade or auction to
maximize the salvage value. Staff is also proposing the purchase of a grapple bucket to increase the
versatility of this equipment.
The total anticipated net cost for the loader purchase is $218,714 which is 20.4% less than the net cost of
$275,000 approved in the CIP.
RECOMMENDATION
Staff recommends City Council authorization to declare the loader as surplus property, and to purchase
replacement unit as outlined in the attached 2021 Front End Loader Purchase Recommendation Report.
I:\City Clerk\Agenda Items\Approved Items\6.d. 2021 Proposed Front End Loader Purchase - Attach 1.docx
2020 Front End Loader
Purchase
Recommendation Report
I:\City Clerk\Agenda Items\Approved Items\6.d. 2021 Proposed Front End Loader Purchase - 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
8419 2005 Caterpillar
Loader, Plow, Wing 15 4,385 34 $200,711 $275,000 $218,714
Totals $200,711 $275,000 $293,714
I:\City Clerk\Agenda Items\Approved Items\6.d. 2021 Proposed Front End Loader Purchase - Attach 1.docx
2005 CATERPILARL LOADER (8419)
DESCRIPTION
• 4,385 miles
• Purchase Price: $200,711
• CIP Approved Amount: $275,000
• Quoted Replacement Price: $293,714
• Quoted Trade Value: $75,000
CONDITION
• 15 years old
• Overall score: 34 (see attached rating matrix in APPENDIX A)
• Condition score: 4.70 (significant wear)
• Maintenance costs to-date: $101,606 (51% of purchase cost)
USED FOR
• Plowing
• Hauling gravel, dirt, asphalt, etc.
STAFF RECOMMENDATION
• Purchase front end loader for net cost of $218,714 after $75,000 trade-in of current
unit
• Funding from Equipment CIP
I:\City Clerk\Agenda Items\Approved Items\6.d. 2021 Proposed Front End Loader Purchase - Attach 1.docx
APPENDIX A
Vehicle Replacement Ratings in OMS
Category Definitions
Points
1 2 3 4 5
AGE
One point for each year of
chronological age, based on
manufacture date.
USAGE
Equipment metered in miles - 1 point
for every 7,000 miles 0 - 7000 miles 7000 - 14000 mi 14000 - 21000 mi 21000 - 28000 mi > 28000 mi
Equipment metered in hours - 1 point
for every 250 hours 0 - 250 hours 250 - 500 hours 500 - 750 hours 750 - 1000 hours > 1000 hours
RELIABILITY
The average number of times a
vehicle comes in for service each 90
days.
1.5 times per 90 days 3 times per 90 days 4.5 times per 90 days 6 times per 90 days 7.5 or more times
per 90 days
MAINTENANCE
AND REPAIR
Compares the M&R costs to a
percentage of the vehicle's Purchase
cost (in our case, 75 percent of the
purchase cost is used). Each point
represents 20 percent.
Between 0% and 20%
of prorated vehicle
cost
Between 20% and
40% of prorated
vehicle cost
Between 40% and
60% of prorated
vehicle cost
Between 60% and
80% of prorated
vehicle cost
Between 80% and
100% of prorated
vehicle cost
SERVICE TYPE
(CRITICALITY)
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.
CONDITION
A mechanic rates each unit using a 1-
5 scale for Engine Condition (15%
weight), Body Condition (15%
weight), Frame/Chassis Condition
(15% weight) and Overall Condition
(55% weight). If no mechanic rating
is given, the system will calculate a
rating based on default performance
curves for that type of equipment.
Like New Slight Wear / Few
Deficiencies
Moderate Wear /
Some Deficiencies
Significant Wear /
Multiple Deficiencies
Extreme Wear /
Numerous
Deficiencies