HomeMy WebLinkAbout02/15/2005, C4 - PURCHASE OF LEASED CRACK SEAL KETTLE council �D� c�
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CITY OF SAN LUIS O B I S P O
FROM: Jay Walter,Public Works Director
Prepared By: . Dave Smith, Administrative Services Manager
Gary Keavney, Streets Maintenance Supervisor
SUBJECT: PURCHASE OF LEASED CRACK SEAL KETTLE
CAO RECOMMENDATIONS:
Approve a purchase order in the amount of$21,350 using existing capital outlay funds for a sole-
source purchase to Crafco Inc. for an existing leased Crack Seal Kettle.
DISCUSSION
Crack sealing prolongs the life of city streets by keeping moisture out of cracks that occur in the
asphalt, and helps prevent potholes and further deterioration along the cracks and fissures. It is
also useful in pre-treating areas scheduled for slurry seals under our Pavement Management
System. Given our current fiscal challenges, and the anticipated reduction in the funds available
for pavement maintenance, crack sealing becomesa more important element in a comprehensive
maintenance strategy to extend the life of city streets and roads.
The Streets Division currently rents a crack seal kettle at a cost of approximately $4,000 per
month. A new crack seal kettle costs approximately $32,000. The Streets Division is currently
renting a unit that has low hours on the machinery (approximately 1,400 hours). The machinery
company (Crafco) estimates the useful life of a properly maintained unit such as this would be
6,000 hours. If we purchase the used unit we currently rent, we would have approximately 4,600
hours of service life left on this unit, which translates to about 115 weeks of service time.
Renting for 115 weeks at the current rate would cost $115,000. To purchase the unit would
generate a payback in less than one year.
A sole source purchase is being requested and is justified by 1) the history we have with this piece
of machinery, and 2) the discounted price from the vendor. Bids could be solicited for a new unit
or for a different used unit, but in view of the history we have with this machine, we are confident
that it is in good condition.
Funding for this purchase is available in the existing Sidewalk Repair Capital Improvement
Project budget because street maintenance staff was able to complete an unexpectedly higher
amount of sidewalk repair work with in-house instead of contract labor. This purchase would be
a one-time expense to the Sidewalk Repair project account.
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Purchase of used Crack Seal Kettle Page 2
CONCURRENCES
The City's Fleet Maintenance supervisor concurs with this purchase. Fleet Maintenance has
sufficient resources to maintain this additional unit in the fleet inventory and has inspected the
unit, confirming it is in excellent condition.
FISCAL IMPACT
Purchase Costs:
Current Balance- Sidewalk Repair 2004-05 (400-51900-90409) 60,000
Crack Seal Kettle Purchase (21,350)
Remaining Balance 38,650
ALTERNATIVES
Continue to rent the Crack Sealer Kettle at a greater long-term cost.
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