HomeMy WebLinkAbout05-06-2014 C8 Fleet Reduction - Skid Steer UnitCity of San Luis Obispo, Council Agenda Report, Meeting Date, Item Number
FROM: Daryl R. Grigsby, Director of Public Works
Prepared By: Timothy S. Bochum, Deputy Director of Public Works
Dave Smith, Interim Fleet Maintenance Supervisor
SUBJECT: FLEET REDUCTION - SKID STEER UNIT 9601
RECOMMENDATION
1. Approve removal of a Case Skid Steer Tractor from the City’s fleet.
2. Authorize the transfer of Capital replacement costs for this unit from the Capital
Improvement Plan project, Specification No. 91233, to the Fleet Operating Program budget.
3. Authorize the surplus designation of Case Skid Steer Tractor, Fleet Asset No. 9601, by sale,
auction, trade-in or other method in accordance with the City’s policies and procedures as
prescribed in the Financial Management Manual Section 405-L and 480.
DISCUSSION
Background
A Case Skid Steer Tractor (City Asset ID 9601) was purchased in 1995 for the Street
Maintenance budget program. The unit has increasingly deteriorated to the point that repairs are
no longer being made to the unit as it is not prudent to continue investing in repairs to keep it
functional. In order to satisfy Street Maintenance production needs, the Streets and Water
Distribution supervisors agreed to an informal shared use arrangement with a second, newer Skid
Steer Tractor (City Asset ID 0623) purchased in 2006 for the Water Distribution maintenance
program. The informal fleet equipment sharing approach between the two work groups has
worked well, and the combined demand has not resulted in scheduling conflicts for service
delivery in either budget program. As a result, the Street Maintenance and Water Distribution
supervisors have agreed there is no need to replace the outgoing skid steer (9601). In lieu of
replacement, the two Departments will set up a pooled fleet resource in Outlook for reserving use
of the other Skid Steer Unit (0623) between the two work groups. This practice will continue
until that unit is eventually replaced.
Funding considerations for shared Skid Steer Use
The 2013-15 Financial Plan authorized $39,100 from the General Fund for the replacement of
Skid Steer 9601. The original 2006 purchase price of the second Skid Steer 0623 was $50,660
paid for by the Water Fund. The Fleet Replacement guideline for construction equipment is 12
years. Unit 0623 is eight years old with a remaining service life of another 4 years, or 33% of the
total anticipated life. Public Works and Utilities staff considered reimbursing the Water Fund
half of the remaining service life (16.5% of the original purchase price) but Utilities and Public
Works staff recommends not reimbursing the Water Fund at this point. Instead, both Streets and
Water Distribution supervisors will track actual use of the unit by each work group over the
remaining four years to determine the proper ratio of shared replacement cost to the General and
Water Funds when unit 0623 is replaced in 2018.
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Fleet Reduction - Skid Steer Unit 9601 Page 2
Offsetting Other Equipment Replacement Rental Costs
Separate from the Skid Steer tractor, two fleet replacements included in the 2013-15 Financial
Plan (a dump truck and an aerial lift truck) were ordered but had long lead times from the date of
order to delivery. The old equipment had to be taken out of service months prior to delivery. This
was due to California Air Resource Board requirements disallowing continued operation of
diesel equipment beyond cut-off dates (06-30-2013 for the dump truck and 12-21-2013 for the
aerial lift truck). To avoid interruption of Street Maintenance staff production work, month-to-
month rentals of similar vehicles were arranged. The replacement dump truck has been received
and is now in service. The aerial truck will be received in August. Rental cost for the short term
use of similar equipment is being charged to the Fleet program budget. The rental costs for both
units are projected to total approximately $35,000 by the end of fiscal year 2013-14. Using
funding originally programed for the replacement of Unit 9601 Skid Steer will help offset most
of the unplanned rental costs in the Fleet Program budget. To conclude, this action to share the
Skid Steer offsets the unanticipated vehicle rental costs for the dump truck and the aerial lift
truck.
CONCURRENCES
The Utilities and Public Works Departments concur with the recommendations made in this
report.
FISCAL IMPACT
The remaining CIP project fund balance would normally be placed in the Fleet Replacement
General Fund Completed Projects account; however, staff is recommending the remaining
project fund balance be transferred to the Fleet Operating Program equipment to help offset the
aforementioned unfunded program budget expenditures for truck rentals.
Fleet Replacement Project Costs 2013-14 Budget
Skid Steer Replacement Approved Budget $39,100
Transfer of funding to Fleet Maintenance Program ($35,000)
Remaining Project Balance to go to completed projects $4,100
ALTERNATIVES
1. Retain the Skid Steer in the City Fleet. The unit could be retained in the fleet and have the
replacement deferred indefinitely. This is not a recommended as the unit is not practical to
repair, serves no useful purpose, and is no longer needed given the shared arrangement of a
second skid steer.
2. Deny Transfer of funding to Fleet Program. The City Council could deny transfer of fleet
replacement funding to the Fleet Operating program. This funding shortfall would need to be
resolved as part of the year end budget close out process.
ATTACHMENT
2013-15 Replacement CIP
t:\council agenda reports\2014\2014-05-06\fleet reduction - skid steer unit 9601\fleet reduction skid steer unit 9601.docx
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Project Description
Replacing one (1) Skid Steer Tractor for Street Maintenance will cost $39,100 in 2013-14.
Replacing one (1) Street Sweeper for Street Maintenance will cost $266,600 in 2016-17.
Replacing one (1) Asphalt Grinder and Trailer Mount for Street Maintenance will cost $89,100 in 2016-17.
Replacing one (1) Backhoe equipped with concrete breaker and buckets for Street Maintenance will cost $126,900 in 2017-18.
Replacing one (1) Transfer Dump Truck and Slide-in patcher body unit for Street Maintenance will cost $325,000 in 2017-18.
Maintenance/Replacement New project Fleet Replacement New Fleet Request
Council Goal / Measure Y Priority - List:
Need and Urgency
Staff is requesting the replacement five (5) pieces of equipment or vehicles in the five year financial plan for a total cost of $846,700. This would include one (1)
skid steer tractor in 2013-14 for Public Works Streets Maintenance division; one (1) street sweeper and one (1) asphalt grinder and trailer mount in 2016-17; and
one (1) backhoe equipped with concrete breaker and buckets and one (1) transfer dump truck and slide-in patcher unit in 2017-18. For each of the replacements,
the Fleet Manager has reviewed maintenance records and condition assessment and recommends the identified equipment replacement date.
2013-14
Skid Steer Tractor (9601) 2013-14
This construction equipment has been placed into a City-Wide “pool” program to promote its use and extend the service-life. This equipment is used extensively
in sidewalk excavation which includes root pruning. Because of its compact size, it is often used to clear debris in or near creeks and culverts that can clog during
storm events. Due to the harsh environment this equipment works in, it has needed extensive repairs to the hydraulic systems and electrical systems in recent years
taxing the time of vehicle maintenance staff to keep it going. The Case skid steer tractor (Asset 9601) was purchased in 1995 and was proposed for replacement in
the 2011-13 Financial Plan for the 2015-16 fiscal year. Per the recent condition assessment and significant repair costs, staff recommends accelerating this
replacement to 2013-14. This unit will have 19 years of service at the suggested replacement date. In accordance with the City’s Fleet Policy, “skid steer tractors”
have a target replacement schedule of 20 years.
2016-17
Street Sweeper (0817) 2016-17
This sweeper is used to clean up work sites that include both concrete and asphalt construction. It is also used during storm events to clean up the leaves and debris
that accumulate during and after an event. It is used nearly every day in some street maintenance capacity, including accident cleanup requests from the Fire and
Police Departments. The Tymco street sweeper (Asset 0817) was purchased in 2008 and has approximately 27,000 miles. This unit is expected to exceed the
recommended replacement age by the 2016-17 fiscal year. However, due to inner-city driving this sweeper may not meet the expected mileage until 2017-18. In
accordance with the City’s Fleet Policy, “street sweepers” have a target replacement schedule of 8 years / 60,000 miles / 6,000 hours. This sweeper is starting to
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see increased repair costs above routine preventative maintenance as this sweeper performs in harsher construction/paving environments. Fleet staff does not
recommend deferring beyond this date.
Asphalt Grinder & Trailer Mount (0615) 2016-17
The asphalt grinder is used extensively in asphalt repair and replacement. This equipment mills or grinds out existing asphalt so that it can be replaced with fresh
hot mix asphalt. It has been used to grind out thousands of tons of existing asphalt on City streets and saves the crews from saw cutting the asphalt and jack
hammering it out which was the method used prior to procuring this device. The asphalt grindings that result from this process can then be reused as a base for the
new hot mix asphalt to be placed over. Because of the versatility of this machine the crews can repair potholes or large areas of failing asphalt that will last much
longer than temporary cold mix type repairs saving both time and money in the long run. The crews also use this machine to prepare roads scheduled for micro
surfacing treatments under the pavement management maintenance strategy each summer. The asphalt grinder and trailer mount (Asset 0615) was purchased in
2005, is seven (7) years old and has 889 hours. In accordance with the City’s Fleet Policy, “other construction equipment” has a target replacement schedule of 12
year / 5,000 hours. The equipment will be eleven (11) years old at time of recommended replacement. This equipment receives heavy/daily use by the paving
crews. Asphalt grinder manufacturers recommend a maximum of ten years usage for this type of equipment that is known to perform in harsh environments and
with this level of daily usage. Staff does not recommend deferring this equipment replacement beyond this date.
2017-18
Backhoe (0213) 2017-18
This equipment is used extensively in all areas of street maintenance, including street excavations and repair, sidewalk construction and loading spoils that collect
at the Corporation Yard into drop boxes or trucks for hauling to the land fill. It is also used extensively during storm events that cause slides, downed trees and
extensive road debris. The Caterpillar Backhoe (Asset 0213) was purchased in 2001 and was proposed for replacement in the 2011-13 Financial Plan for the 2013-
14 fiscal year, with a second backhoe proposed for replacement in 2015-16. The equipment, while used almost every working day in some capacity, is still in fair
condition and staff assessment recommends deferring replacement. This unit will have over 16 years of service at the suggested replacement date 2017-18. In
accordance with the City’s Fleet Policy, “backhoes” have a target replacement schedule of 12 years.
Freightliner Diesel Transfer Dump Truck (plus Slide-in Patcher body unit (9713)
The Streets Maintenance division 1994 Freightliner diesel dump truck with a slide-in patcher body unit (Asset 9713) was purchased used in 1997. This dump truck
is utilized daily by the Streets Maintenance staff to perform pavement management operations, removal of debris and hauling of sweeping spoils to the landfill.
This vehicle was initially slated for replacement in 2011-12. However, the State of California Air Resources Board (CARB) mandate for diesel engines emission
reductions allowed provision for retrofitting. This vehicle was retrofitted with a diesel particulate matter trap in August 2011 which extended its vehicle life per
the CARB ruling. Staff recommends replacing this vehicle in 2017-18. This vehicle currently has 530,873 miles and will be 20 years of age at the time of
replacement in 2017-18. In accordance with the City’s Fleet Policy, “heavy trucks (over 2 tons)” have a target replacement schedule of 16 years / 60,000 miles.
This vehicle far exceeds those requirements.
The decision to replace this vehicle/equipment is based on the following factors:
1. Projected miles of vehicle exceed replacement miles recommended in Fleet policy (Asset 9713).
2. Actual years of operation exceed recommended years in Fleet policy (0817, 9713 & 0213).
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3. Review of mechanical condition and history by Fleet Supervisor and Department staff.
4. Evaluation of maintenance costs by Fleet Supervisor.
5. Spreading vehicle replacement costs over multiple years for program users.
Operating Program Number and Title:
50300 - Streets and Sidewalk Maintenance
Project Phasing and Funding Sources
Continuing, ongoing or master account project - Specification No.
(Asset #9601, 0817, 0615,
0213 & 9713)Initial Project Costs by Phase
Budget to Date 2013-142014-152015-162016-172017-18 Total
Equipment Acquisition $0$39,100 $0 $0$355,700$451,900$846,700
Total $0$39,100 $0 $0$355,700$451,900$846,700
Ongoing Costs by Type
Budget to Date 2013-142014-152015-162016-172017-18 Total
Maintenance/replacement 0 0 0 0 2500 2500 5000
Total $0 $0 $0 $0$2,500$2,500$5,000
Detail of ongoing costs and alternatives to ongoing costs including return on investment information:
Ongoing costs are those associated with typical preventative maintenance. Typical annual costs for preventative maintenance such as oil/filter changes,
inspections, plus as-needed replacement of wear parts such as tires, batteries, brakes, filters and fuses. Budget for these repairs/routine maintenance are supported
through the Fleet Services operating budget for routine maintenance and repairs. Budget for replacement Sweeper Brooms is not included as part of the CIP Fleet
Replacement nor part of routine repairs in the Fleet Services Operations budget. Funding for replacement sweeper brooms will be needed.
Deferring replacement of these vehicles could lead to higher costs for maintenance and operation for Streets and Sidewalk Maintenance budget, decreased
reliability and delays in service due to city staff needing to locate an alternate vehicles/equipment. Additional funds will be needed for increased repairs should
replacements be deferred.
Anticipated Vehicle Life Span:
Skid Steer Tractors 20 years
Street Sweeper 8 years / 60,000 miles / 6,000 hours
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Other Construction Equipment 12 years / 5,000 hours
Backhoes 12 years
Heavy Trucks (> 2 tons) 16 years / 60,000 miles
Budget to Date 2013-142014-152015-162016-172017-18 Total
Fleet Replacement Fund $0$39,100 $0 $0$355,700$451,900$846,700
Total $0$39,100 $0 $0$355,700$451,900$846,700
Project Funding by Source
Reduced / Enhanced Project Alternatives
Alternate project is feasible or advantageous – Cost of alternative project: Sweeper could be replaced with an “air-sweep” model which does not utilize
brooms, for a reduced base price of $221,735. However, this model would not have a dump hopper and would be incompatible for sweeping asphalt and other
streets maintenance debris and therefore could not be a shared piece of equipment between the Streets Maintenance and Stormwater programs if needed.
Project can be phased – Number of years for phasing: Replacements already spreading over five year Financial Plan to help absorb the impact.
Equipment/vehicles meeting target age/mileage/hours and increased repair costs above routine preventative maintenance have been recommended for replacement
within the appropriate year.
Leasing Alternative: Leasing of some vehicles may be possible; however, generally requires vehicles to be turned in after the lease period and a new lease
established for newer equipment, keeping leasing costs high. By owning a vehicle, the City has increased flexibility to extend the service life of the vehicle, which
in the case of high quality vehicles can be done with little to no additional impact to the Fleet Maintenance operations, and reduces the overall replacement
annualized cost for the vehicle.
Project Team
Assignment Program Estimated Hours
Specification Development Fleet Maintenance
Street Maintenance
20
Fleet Procurements Fleet Maintenance 15
Equipment Installation/Ready for Service Fleet Mechanics 80
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Description of Replacement Units
Replacement Fiscal Year 2013-142014-152015-16
City Fleet Number 9601 0817 0615 0213 9713
Vehicle Type
Skid Steer Tractor Street Sweeper Asphalt Grinder and
Trailer Mount
Backhoe Transfer Dump
Truck
Make Case Tymco Caterpillar Reliant
Model 420F Freightliner
Model Year 1995 2008 2005 2001 1994
Date Entered City Service 1995 2008 2005 2001 1997
Odometer Reading at 10-31-12 1161 26222 889 2983 530873
Mileage/hours/Year Average 68 - 6,556 127 271 35,392
Replacement Guidelines
Target: Years /Mileage / Hours 20 years
9 yrs /60,000 miles
/6,00 hours 12 years 12 years
16 years / 60,000
miles
Estimated Hours/Mileage @
Replacement 1,229 49,166 4,203 690,135
Estimated Years @ Replacement 19 years 10 years 11 years 16 years 20 years
Satisfies Replacement Policy:No Yes - age No Yes - age
Yes - age &
mileage
Fleet Supervisor Assessment *Tractor will meet
target age by end of
2013-14. Do not
recommend
derfering due to
increasing repair
costs.
*Exceeds target age
by 1 year, but lower
mileage due to inner-
city driving.
Increasing repair costs
as sweeper performs
in harsher
construction
environments. Do not
recommend deferring.
*Asphalt Grinder will
meet target age by end
of 2013-14.
Heavy/daily use
showing causing
increased repairs.
Manufacturer
recommends 10-yr
replacement cycle for
equipment in this
environment/level of
usage.
*Backhoe exceeds
target age by 4 years.
Unit gets heavy daily
use.
*PM trap allowed
for deferring.
Exceeds age by 4
years and 630,000
miles at time of
replacement.
Replacement Cost Case Schwarze Avalanche Quinn Caterpillar
Base Unit 34,100 243,405 79,386 96,862 290,000
Accessories & Other Costs 1,500 2,500 2,500 20,000 10,000
Misc.200 500 200 200 500
Delivery 500 500 500 500 500
Sales Tax 2,848 19,672 6,551 9,349 24,000
Total Replacement Costs 39,100 - 266,600 89,100 126,900 325,000
2013-142014-152015-16 2016-17
Year Totals:39,100 - -
2017-18
2017-18
451,900 355,700
2016-17
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