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HomeMy WebLinkAbout04-15-2014 C6 Water Resource Recovery Facility 4-Wheel Drive Tractor Loader FROM: Daryl R. Grigsby, Director of Public Works Dave Hix, Deputy Director Wastewater Prepared By: Dave Smith, Inte rim Fleet Maintenance Supervisor Brigitte Elke, Utilities Business Manager SUBJECT: WATER RESOURCE RECOVERY FACILITY 4-WHEEL DRIVE TRACTOR-LOADER, SPECIFICATION NO. 91221 RECOMMENDATIONS 1. Approve the use of Cooperative Purchasing Agreement with National Joint Powers Alliance (NJPA) five-year Contract #060311-NAF through Quinn Caterpillar, effective January 17, 2012, for the purchase of one Caterpillar Wheel Loader. 2. Authorize the Finance Director to execute a purchase order to Quinn Caterpillar of Santa Maria, California in the amount of $158,988 for a Caterpillar IT14G2 Wheel Loader and attachments from the 2013-14 vehicle purchase account. 3. Authorize the surplus designation of the Wheel Loader, Fleet Asset No. 9406 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 In 1994, the City purchased a Caterpillar Wheel Loader (Asset 9406) for its Streets Maintenance program. Due to the need to equip the vehicle to accommodate additional asphalt grinding equipment, the Fleet Maintenance division approached Water Resource Recovery Facility (WRRF) staff in 2010 requesting a vehicle swap. The Caterpillar Wheel Loader acquired by the WRRF (Asset 0329) was a newer and larger 2002 model, able to accommodate the additional asphalt equipment. The swap was made with the understanding that the cost of replacement down the line would be shared based on the time the asset was utilized in the two programs. Replacement Agreement After 20-years and 4,500 hours of service, the 1994 Caterpillar Loader has been identified for replacement in 2013-14 (Capital Improvement Plan page 3-191). Based on the vehicle swap agreement, the General Fund is responsible for 195 months of service or $129,178 and Utilities for 45 months of service or $29,810 of the total vehicle replacement cost of $158,988. As the new asset will be fully deployed at the WRRF, future replacements will be the responsibility of the Utilities Department. 4-15-2014 C6 - 1 Wheel Loader (9406) Replacement – Specification 91221 Page 2 Cooperative Purchase Staff recommends approval of the use of a multi-year cooperative purchasing agreement with the National Joints Powers Alliance (NJPA) Contract No. 060311-CAT to purchase the Wheel Loader through Quinn Caterpillar (Attachment 2). Use of the cooperative agreement complies with the City’s purchasing guidelines in the Financial Management Manual (Section 405-I). The Capital Plan identifies a vehicle replacement cost of $160,900. Quinn Caterpillar has provided a competitive bid quote through NJPA Cooperative Purchasing Agreement, for both the loader and attachments, at $158,988 that is fully complying with the City’s policies and requirements. Staff has inspected and reviewed the NJPA price list and agrees that the loader and attachments quoted by Quinn Caterpillar complies with the cooperative purchase agreement and meets the City’s specifications. CONCURRENCES The Utilities Department concurs with the recommendation made in this report. FISCAL IMPACT Funding for this vehicle replacement was included in the 2013-15 Capital Improvement Plan Page 3-191 with a budget of $160,900. Fleet Replacement Project Costs 2013-14 Budget CAT IG14G2 Wheel Loader and accessories $147,211 Sales Tax (8.00%)$11,777 Radio $0 Delivery $0 Total Project Cost $158,988 Available Project Budget $160,900 Project Fund Balance $1,912 ALTERNATIVE Defer Purchase. The City Council could choose to deny or defer the Wheel Loader purchase. Staff does not recommend this option. The loader is a critical piece of equipment used daily to move waste solids. Deferring replacement of this vehicle could lead to higher costs for maintenance and operation for the WRRF with decreased reliability and delays in service. Additional funds will be needed for increased repairs should replacements be deferred. ATTACHMENTS 1. Cooperative Purchasing Agreement, National Joints Powers Alliance 2. Proposal Quinn Caterpillar 3. 2013-15 Replacement CIP T:\Council Agenda Reports\2014\2014-04-15\Water Resource Recovery Facility 4-Wheel Drive Tractor Loader (Mattingly-Elke) C6 - 2 ATTACHMENT 1 C6 - 3 ATTACHMENT 1 C6 - 4 Machines New Equipment Used Equipment Discount off List Discount from original List Pavers AP1000 16.00%20.0% AP1055 16.00%20.0% AP600 16.00%20.0% AP655 16.00%20.0% AP500 16.00%20.0% AP555 16.00%20.0% AP255 16.00%20.0% Rollers CB14 16.00%20.0% CB22 16.00%20.0% CB24 16.00%20.0% CB32 16.00%20.0% CB34/CB34XW 16.00%20.0% CB44 16.00%20.0% CB54 16.00%20.0% CB64 16.00%20.0% CC24 16.00%20.0% CC34 16.00%20.0% CD44 CD54 16.00%20.0% CP44 14.00%20.0% CP54 14.00%20.0% CP56 14.00%20.0% CP68 14.00%20.0% CP74 14.00%20.0% CS44 14.00%20.0% CS54 14.00%20.0% CS64 14.00%20.0% CS68 14.00%20.0% CS78 14.00%20.0% CW14 16.00%20.0% CW34 16.00%20.0% Track Type Tractors D3 25.00%20.0% D4 24.00%20.0% D5 25.00%20.0% D6 24.00%20.0% Caterpillar 2014 Contract Equipment Discounts ATTACHMENT 1 C6 - 5 735 14.00%20.0% 740 14.00%20.0% Landfill Compactors 816 14.00%20.0% 826 14.00%20.0% 836 14.00%20.0% Wheel Dozers 814 15.00%20.0% 824 15.00%20.0% Wheel Loaders 906 25.00%20.0% 907 25.00%20.0% 908 25.00%20.0% 914 25.00%20.0% 924 26.00%20.0% 930 26.00%20.0% 938 26.00%20.0% 950 24.00%20.0% 962 24.00%20.0% 966 21.00%20.0% 972 16.00%20.0% 980 12.00%20.0% Track Loaders 953 20.00%20.0% 963 23.00%20.0% 973 23.00%20.0% Vocational Trucks CT660 23.00% CT681 23.00% Worktools 15.00% ATTACHMENT 1 C6 - 6 Page 1 of 5 Quote 111408-01 March 18, 2014 CITY OF SAN LUIS OBISPO ATTN ACCOUNTS PAYABLE 25 PRADO RD SAN LUIS OBISPO California 93401-7314 Attention: JEREMY SCHMIDT Dear Sir, We would like to thank you for your interest in our company and our products, and are pleased to quote the following for your consideration. CATERPILLAR INC. Model: 914K Wheel Loader YEAR: 2014 We wish to thank you for the opportunity of quoting on your equipment needs. This quotation is valid for 30 days, after which time we reserve the right to re-quote. If there are any questions, please do not hesitate to contact me at 805-310-9296 or dneedelman@quinncompany.com. Sincerely, Dave Needelman Machine Sales Representative ATTACHMENT 2 C6 - 7 Quinn Group Quote 111408-01 Page 2 of 5 ATTACHMENT 2 CATERPILLAR INC. Model: 914K Wheel Loader STANDARD EQUIPMENT POWERTRAIN Cat C3.8 Electronic Turbo Diesel Engine SOS port, engine oil -Direct Injection, Denso fuel system SOS port, transmission oil -Common Rail Fuel Injection - 3 Stage Hydrostatic transmission -Gross: SAE J1995:98HP/ 73 kW@2400RPM Lubed for life universal joints -Net: SAE 1349:95HP/ 71kW @ 2400 RPM Forward - Neutral - Reverse on joystick -Net: ISO 9249:96HP/ 72kW @ 2400 RPM Standard differentials -Peak Torque SAE J1995:335Nm@1500RPM Brakes, service -Torque Rise: 15.1% -enclosed, wet-disc full hydraulic -US EPA Tier 4i/ EU Stage IIIB Brakes, parking (also secondary brake) -Passive Regeneration, exhaust dosing - mechanical on drive-line Cooled EGR NOX reduction Radiator, serviceable core, single plane NRS particulate matter reduction Air cleaner, Radial seal, dual filters Fuel: Ultra Low Sulphur Diesel @ <15ppm Air inlet heater starting aid on switch Engine Oil: CJ-4, ECO engine oil drain Cooling Fan, pusher type, hi efficiency Electric fuel pump w/4 micron filtration HYDRAULICS Automatic Lift kickouts SOS port, hydraulic oil Priority steering Hydraulic Oil Cooler - single plane Hydraulics, 2 Valve, 1 Joystick Hydraulically driven cooling fan Hydraulic diagnostic pressure taps ELECTRICAL 80-ampere alternator Directional Signals (front and rear) Back-up alarm (USA/Canada only), this 12 volt direct electric starting item is optional for other countries Ignition key start/stop switch One 1000 CCA maintenance free batterys Switch, battery disconnect key Halogen flood lights (front and rear) Steering wheel mounted warning horn OPERATOR ENVIRONMENT ROPS/FOPS cab, pressurized and Interior light sound suppressed Door, fixed glass Hydraulic control lever lockout Seat Pilot hydraulic implement controls - Fabric or Vinyl Gauges - adjustable height, backrest, armrest - Engine coolant temperature - Seat belt, retractable - Hydraulic oil temperature Heater/defroster - Fuel level Wiper/washer Front(intermittent) - Battery Voltage Wiper/washer Rear C6 - 8 Quinn Group Quote 111408-01 Page 3 of 5 ATTACHMENT 2 - Digital Hour meter Tinted front glass Operator warning system indicators: Adjustable steering column - Primary steering malfunction Rear window defrost - Brake charge pressure low Rearview mirrors, outside(2) - Engine Oil pressure low Storage box with cup holder - Park brake applied Ground level door release - Electrical system voltage low Internal 12V power source - Hystat oil filter bypass External 12V power source FLUIDS Extended life coolant antifreeze Protected to -36C (-33F) OTHER STANDARD EQUIPMENT Parallel lift, Z-bar points Fenders, front and rear Automatic bucket/fork positioner Engine enclosure - lockable Counterweight Recovery hitch Radiator expansion tank Vandalism protection - locked service C6 - 9 Quinn Group Quote 111408-01 Page 4 of 5 ATTACHMENT 2 MACHINE SPECIFICATIONS Description Reference No List Amount 914K WHEEL LOADER * Doesn't include Freight/Prep 397-2672 $116,850.00 Standard machine with top speed of 12 mph (20 kph) SEAT BELT, RETRACTABLE 3'' 236-8015 $235.00 LIGHTS, CAB, WORKING (FOUR) 260-5500 $580.00 BEACON, ROTATING 260-5501 $373.00 BLIND, REAR 279-0643 $294.00 VALVE, DRAIN, ECO 308-0189 $149.00 PRECLEANER 377-7559 $231.00 TIRES, 17.5-R25 XHA * L3 385-5823 $3,040.00 FENDERS, STANDARD 392-3185 HEATER AND AIR CONDITIONER 396-2509 $4,000.00 POWERTRAIN, HI RIMPULL, 24MPH 396-2517 $4,640.00 HYDRAULICS, 3 VALVE, 1 LEVER 396-2521 $1,800.00 ENCLOSURE, STANDARD 396-2598 ENGINE, HRC, T4I 397-2679 CAB, DELUXE 398-8705 $8,000.00 STEERING, STANDARD 417-5830 LIGHTS, ROADING, RH DIP 423-5544 $725.00 FAN, COOLING, STANDARD 423-6169 FEATURE PACKAGE, ROAD and LOAD 425-9677 $3,500.00 GUARD, HOSE, 3 VALVE 426-1433 TOOL BOX, LOCKABLE 426-1507 $590.00 ALARM, BACK-UP 426-1526 HARNESS, WIRING, WORKTOOL 431-0425 $345.00 INSTRUCTIONS, ANSI 431-9528 SECURITY SYSTEM, NONE 433-3258 LOADER ARRANGEMENT, STD COUPLR 433-7005 GUARD, COUPLER HOSE, STD LIFT 435-0809 $95.00 HYDRAULIC OIL, STANDARD 450-5405 $1,100.00 ENGINE COOLANT, STANDARD 450-5406 $200.00 BATTERY, STANDARD 454-4435 CYLOWAX APPLICATOR 0G-3273 $105.00 SLIGHTLY USED BA25 ANGLE BROOM, 164-8484 $14,000.00 BUCKET-MP, 1.75 CYD (QC) 244-2857 $18,738.00 ARM,MATERIAL HANDLING(QC)-CWTS 205-2428 $4,678.00 ******** Doesn't Include Freight and Prep Charges ***** C6 - 10 Quinn Group Quote 111408-01 Page 5 of 5 ATTACHMENT 2 Suggested Selling Price $184,268.00 NJPA Discount Contract #060311 (Machine Only 25%) $-39,103.00 NJPA Discount Contract #060311 (Attachments 15%) $-7,513.00 Freight & Prep Charges $9,559.00 Sub Total $147,211.00 State Sales Tax (7.5%) & City Sales Tax (0.5%) $11,776.88 After Tax Balance $158,987.88 WARRANTY Standard Warranty: 12 Months Full Machine Extended Warranty: 36 Month 3,000 Hour Powertrain & Hydraulics F.O.B/TERMS Santa Maria Earthmoving FINANCING ADDITIONAL CONSIDERATIONS • Delivery in July/August Accepted by _________________________________________ on _____________________ _____________________________________________________________ Signature C6 - 11 CAPITAL IMPROVEMENT PLAN – PUBLIC UTILITIES FLEET REPLACEMENT – WATER RECLAMATION FACILITY 4-WHEEL DRIVE TRACTOR-LOADER Project Description Replacing one (1) 4-Wheel Drive, construction-rated, Tractor-Loader with bucket attachments for the Water Reclamation Facility (WRF) will cost $160,900 in 2013-14.  Maintenance/Replacement  New project  Fleet Replacement  New Fleet Request  Council Goal / Measure Y Priority - List: Need and Urgency The current Caterpillar Loader was purchased new in 1994 by the General Fund Streets Maintenance program and currently has 4,500 hours. In July 2010, the Fleet Maintenance division approached Water Reclamation Facility (WRF) staff requesting a vehicle swap. The Caterpillar Loader originally acquired for the Streets Maintenance division (Asset 9406) was not fully equipped to accommodate additional asphalt grinding equipment, as it was an older model. The Caterpillar Loader acquired by the WRF (Asset 0329) was a newer 2002 model; this model was larger and could accommodate the additional asphalt attachment equipment. A swap of the two loaders was made between General and Enterprise funded programs to accommodate the needs of both the Streets Maintenance and WRF programs. • Asset #9406 (1994 Caterpillar Loader) was transferred to the WRF division in July 2010. Staff has been using this loader to fully support the transportation and loading needs of the facility. This vehicle will be out of compliance with California Air Resources Board (CARB) emissions by 2020. • Asset #0329 (2002 Caterpillar Loader) was transferred to the Streets Maintenance division in July 2010. Additional attachments were fabricated to accommodate new asphalt grinder and asphalt zipper equipment. Following the necessary fabrication, the Loader was placed back into services for the Streets Maintenance program in early 2011. Streets Maintenance staff utilizes this vehicle and attachments on a routine basis. Replacement Agreement Asset #9406 (1994 Caterpillar Loader) has been scheduled for replacement in May 2014. Of the 20-year projected life-span, this vehicle would be part of the General Fund for 195 months and the Enterprise Fund for 45 months. Using the annual amortized amount for the projected vehicle replacement cost and the amount of time the vehicle supported the program, staff has identified the fiscal responsibility of each program for this vehicle replacement. In the 2013-14 fiscal year, the General Fund will be responsible for $130,700 and the Enterprise Fund responsible for $30,200 of the total projected vehicle replacement cost of $160,900. Future replacements will be the responsibility of the Enterprise Fund. 3-191 ATTACHMENT 3 C6 - 12 CAPITAL IMPROVEMENT PLAN – PUBLIC UTILITIES FLEET REPLACEMENT – WATER RECLAMATION FACILITY 4-WHEEL DRIVE TRACTOR-LOADER Asset No.Description Acquisition Date Date of Transfer Annual Amortized Projected Vehicle Rplcmnt Cost General Fund Ownership (months) General Fund Fiscal Respo n sibility Enterprise Fund Ownership (months) Enterprise Fund Fiscal Respo n sibility 9406 1994 Caterpillar Loader 5/6/1994 Jul-10 $ 8,045 $ 160,900 195 $ 130,700 45 $ 30,200 329 2002 Caterpillar Loader 10/31/2002 Jul-10 $ 8,336 $ 166,715 148 $ 102,808 92 $ 63,907 In accordance with the City’s Fleet Policy, “loaders” have a target replacement schedule of 20 years. Staff has reviewed maintenance records, mileage logs and a condition assessment and recommends the vehicle replacement date. The decision to replace this loader is based on the following factors: 1. CARB Requires Replacement of vehicle by 2020. 2. Actual years of operation will meet recommended years in Fleet policy. 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: 55330 – Water Reclamation Facility Project Phasing and Funding Sources  Continuing, ongoing or master account project - Specification No. Initial Project Costs by Phase (Asset #9406)Budget to Date 2013-142014-152015-162016-172017-18 Total Equipment Acquisition $0$160,900 $0 $0 $0 $0$160,900 Total $0$160,900 $0 $0 $0 $0$160,900 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. Funding for fleet maintenance is indirectly supported by the Water Reclamation Facility program through the City’s approved Cost Allocation Plan. 3-192 ATTACHMENT 3 C6 - 13 CAPITAL IMPROVEMENT PLAN – PUBLIC UTILITIES FLEET REPLACEMENT – WATER RECLAMATION FACILITY 4-WHEEL DRIVE TRACTOR-LOADER Deferring replacement of this vehicle could lead to higher costs for maintenance and operation for the WRF 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: 20 years Budget to Date 2013-142014-152015-162016-172017-18 Total General Fund $0$130,700 $0 $0 $0 $0$130,700 Sewer Enterprise Fund $0$30,200 $0 $0 $0 $0$30,200 Total $0$160,900 $0 $0 $0 $0$160,900 Project Funding by Source Reduced / Enhanced Project Alternatives  Alternate project is feasible or advantageous – Cost of alternative project: Loader could be replaced with a 2-wheel drive model for a reduced cost. Staff reviewed rental as an alternative; however, the cost of daily rental fees would exceed the cost of the loader over the life of the vehicle.  Project can be phased – Number of years for phasing: The vehicle will meet its target age for replacement by the end of 2014. The loader experienced high usage in harsh environments when it was a part of the Streets Maintenance program fleet before transferring to the WRF. WRF staff feels operating this loader has become a safety concern due to mechanic issues when operating the vehicle and recommend replacement in 2013-14. However, due to the current limited use at the WRF, this loader replacement could be deferred one additional year with increased maintenance. The vehicle must still be replaced by 2020 for compliance with CARB.  Leasing Alternative: Leasing can be beneficial in some instances for specialty construction equipment or low usage vehicles, although it is not always viable for all vehicles. If the life of a vehicle can be extended due to favorable condition assessments, a lease agreement may not allow for vehicle replacement “deferment”. A comprehensive cost analysis for fleet leasing would need to be conducted in order to fully evaluate the cost benefits of this alternative. Project Team Assignment Program Estimated Hours Vehicle/Equipment Specifications Vehicle & Equipment Maintenance /Water Reclamation Facility 12 Vehicle/Equipment Procurement Vehicle & Equipment Maintenance 20 Equipment Installation/Ready for Service Vehicle & Equipment Maintenance 10 3-193 ATTACHMENT 3 C6 - 14 CAPITAL IMPROVEMENT PLAN – PUBLIC UTILITIES FLEET REPLACEMENT – WATER RECLAMATION FACILITY 4-WHEEL DRIVE TRACTOR-LOADER Description of Replacement Units Replacement Fiscal Year 2013-14 2014-15 2015-16 2016-17 2017-18 City Fleet Number 9406 Vehicle Type Loader Make Caterpillar Model 4-Wheel Dr Model Year 1994 Date Entered City Service 1994 Hourly Reading at 9-18-12 4,392 Hours/Year Average 244 - - - - Replacement Guidelines Target: Years or Mileage 20 years Estimated Hours @ Replacement 4,636 - - - - Estimated Years @ Replacement 20 years Satisfies Replacement Policy:YES Fleet Supervisor Assessment CARB requires replacement of vehicle by 2020. The loader will meet the target age for replacement. Primary use is for on-campus WRF driving. Could be deferred 2+ years with additional maintenance. Replacement Cost Caterpillar 4WD Base Unit 142,000 Accessories & Other Costs 5,600 Misc.1,000 - Delivery 500 Sales Tax 11,808 - - - - Total Replacement Costs 160,900 - - - - 2013-14 2014-15 2015-16 2016-17 2017-18 Year Totals:160,900 - - - - 3-194 ATTACHMENT 3 C6 - 15 Page intentionally left blank. C6 - 16