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Home My WebLink About02/18/1997, C-6 - PAVING EQUIPMENT ACQUISITION AND FLEET MODIFICATION Council ` , ;. �,, 7 j ac En as nepoiA R -G C I TY OF SAN LU IS O B I S P O FROM: Michael D.McCluskey,Public Works Director Prepared By: David Elliott,Administrative Analyst' e SUBJECT: Paving Equipment Acquisition and Fleet Modification CAO RECOMMENDATIONS 1) Cancel the existing equipment replacement project to buy two new 5-yard dump trucks 2) Cancel the existing equipment replacement project to buy one new stakebed truck 3) Approve a new equipment replacement project to buy the following equipment: • one used 3-axle, 10-yard dump truck • one new 1-1/2 ton utility truck • one new 1-1/2 ton multi-purpose truck with detachable stakebed and detachable chipper box • one new tiltbed equipment trailer • one new 150 CFM air compressor 4) Authorize Public Works to buy one used 3-axle, 10-yard dump truck without sealed bids and authorize the City Administrative Officer to award the purchase contract DISCUSSION Background The 1995-97 Financial Plan authorizes purchasing two new five-yard dump trucks and one new stakebed truck to replace four six-yard dump trucks, all of which were at least 13 years old at the time of the replacement request and were assigned to the pavement maintenance program(see page H-10). The original equipment replacement request for this authorization is attached. Since adoption of the 1995-97 Financial Plan,two actions have changed the circumstances of the originally proposed acquisition. First, one of the four dump trucks to be replaced was transferred from Public Works to Utilities for use at the Water Reclamation Plant. And second, Public Works has taken a comprehensive look at its construction equipment fleet and is recommending short and long term changes to scheduled equipment replacements. Changes to Scheduled Equipment Replacements In Spring 1996 Tye Hamilton and Chris Martinelli from the paving crew prepared an analysis of all the equipment assigned to the pavement maintenance program. This analysis suggested several changes in the pavement maintenance fleet which could improve productivity of the paving crew. The Public Works Director convened an ad hoc team(including Tye Hamilton, Chris Martinelli, Joe McDermott, Pete Hammerich,Ron Holstine, and David Elliott)to review the analysis and recommend worthwhile changes which could be incorporated into the City's short and long range equipment replacement plans. While the team is now preparing long range recommendations for the 1997-99 Financial Plan,it is also recommending immediate acquisition of the following equipment in lieu of the two dump trucks and one stakebed truck currently authorized in the 1995-97 Financial Plan: Council Agenda Report-Paving Equipment Acquisition and Fleet Modification Page 2 • one used 3-axle, 10-yard dump truck • one new 1-1/2 ton utility truck • one new 1-1/2 ton multi-purpose trick with detachable stakebed and detachable chipper box • one new tiltbed equipment trailer • one new 150 CFM air compressor There are several ways such an equipment mix would improve productivity, but the following example is typical. With the current fleet, removing nine yards of material from a jobsite at one time would require two six-yard dump trucks, one backhoe, and three crewmembers to drive the equipment to and from the jobsite. With the recommended equipment,one crewmember could perform the work by driving the three-axle dump truck to the jobsite and towing the backhoe behind on the tiltbed equipment trailer. This arrangement would free up two crewmembers for other work and would also save fuel because the material could be hauled in one trip instead of two. The originally requested stakebed truck(replacing one six-yard dump truck)was intended primarily for barricade placement and removal at Thursday evening farmer's markets and other special events. The proposed multi-purpose truck would be more flexible because it could be quickly converted from stakebed to chipperbox and back again depending on what work needed to be done. Also,barricades could remain in the stakebed as it is removed and attached, eliminating one loading and unloading operation each time the barricades are used. Other attachments purchased in the future could make this truck even more flexible and productive. The proposed new tiltbed equipment trailer would replace the existing 1966 Miller tiltbed trailer. This trailer reached the end of its expected useful He in 1984 but was not replaced. Because of its poor design(battery-operated brakes, short bed lengtk top-heavy weight distribution,unstable tracking ability)and wom condition(wood bed nearly rotted through),this trailer is used only rarely. Also, it never had enough capacity to haul heavy equipment. The new tiltbed equipment trailer would haul heavy equipment to and from the jobsite, reducing wear on the equipment and allowing a smaller, more productive job crew. The proposed replacement could be accomplished within the existing budget. The proposed new air compressor would replace the existing 1980 Joy air compressor, which reached the end of its expected useful life in 1995 but was not scheduled for replacement because it seemed to be working well enough at that time. Over the last year, though, this compressor has become temperamental, often blowing oil into the air filter when shut down. This situation puts an essential piece of equipment(used for jackhammering and cracksealing)out of commission for two days while the shop mechanics dismantle and clean the filter system. Again,the proposed replacement could be accomplished within the existing budget. Buying Used vs.New F4uipment The team is recommending buying a used, rather than new, 3-axle, 10-yard dump truck. This type of equipment is ubiquitous in the construction industry and is commonly available in excellent condition and at relatively low prices in the used equipment marketplace. This strategy is authorized for buying used rental sedans and could be applied advantageously to certain construction equipment procurements as well. The authorized procedure is an exception to competitive purchasing in that it allows the purchasing department and the supervising mechanic to shop the used marketplace, find a Council Agenda Report-Paving Equipment Acquisition and Fleet Modification Page 3 suitable vehicle at a good price, determine that the vehicle is in good mechanical condition, and issue a purchase order or contract, all without sealed competitive bidding. The difficulty of accurately and fairly specifying used equipment is the primary reason for the exception to sealed competitive bidding. Public Works is also investigating the feasibility of this procedure for replacing heavy equipment(like backhoes, loaders, bulldozers)and of course eventually replacing the used 3-axle, 10-yard dump truck. Summary of Recommended Equipment Replacements Equipment to be Replaced: fleet#: Corresponding Equipment to be Purchased: Miller Tiltbed Trailer 6610 Tiltbed Equipment Trailer(new) GMC 6-yard Dump Truck 7808 3-axle, 10-yard Dump Truck(used) GMC 6-yard Dump Truck 7915 1-1/2 ton Utility Flatbed Truck(new) Joy Compressor 8001 150 CFM Air Compressor(new) Ford 6-yard Dump Truck 8117 1-1/2 ton Multi-purpose Truck with Attachments(new) This summary shows that the recommended actions will not increase fleet size. Each piece of equipment to be acquired will replace an existing piece of equipment. FISCAL EUPACT Estimated Paving Equipment Acquisition Costs: 3-axle, 10-yard Dump Truck(used) $70,000 1-1/2 ton Utility Truck(new) 30,000 1-1/2 ton Multi-purpose Truck with Attachments(new) 40,000 Tiltbed Equipment Trailer(new) 15,000 150 CFM Air Compressor(new) 10,000 Total $165,000 Budget Available: Transfer from Dump Truck Replacement Account $130,000 Transfer from Stakebed Truck Acquisition Account 35,000 Total $165,000 Attachment original equipment replacement request 1995/97 Financial Plan Request EQUIPMENT REPLACEMENT PROGRAMS: Pavement Maintenance (5031) r REPLACEMENT TITLE: Dump Truck Replacement L] Description ■ Purchase two new dump trucks in 1996/97 ■ Purchase one new stakebed truck in 1996/97 ■ Replace and declare surplus three dump trucks assigned to pavement maintenance program ■ Declare surplus one dump truck assigned to pavement maintenance program This action would result in a net reduction of one vehicle in the general fleet: Objectives ■ Maintain fleet reliability ■ Keep fleet maintenance costs reasonable Background Equipment to be declared surplus: make: GMC GMC Fond For model: 6000 7000 F700 F700 city vehicle number: 7808 7915 8117 8212 vehicle identification number. TCE618V583535 T17DE9VS94701 IFDWK74N2BVJ22635 IFDWK74N2CVA39291 acquisition date: 04119!18 05/04x/9 07/14/81 07/26/82 scheduled replacement date: 04/19/95 05/04/96 07/1481 07/26/99 schedule surplus date: 04/19/95' 05/04/96 07/14/98 07/26/99 acquisition price: $14,055 216,166 524,235 $26,981 estimated value: $3,500 $3,500 $5,500 57,500 current odometer reading: 69,290 81,808 110,084 65,135 maintenance cost since 1991: $4,817 $4,141 54,289 $3,103 Comments: r ■ #8117 and#8212 have diesel engines which had gasoline accidentally run through them about seven years ago. Although they have run okay since then, they emit excessive smoke, which has prompted several citizen complaints. ■ #8117 is used primarily for barricade placement, particularly on Thursday night. This is not optimum use of a dump truck.Over expected mileage. ■ Although only#8117 has reached its expected total service mileage, all four trucks are pretty worn out. ■ #8117 has a manual transmission, which is a maintenance headache and requires a special license endorsement to operate. #7808 and#7915 have gasoline engines which are more complicated, less reliable, and less fuel efficient than diesel engines,which would be specified for the replacements. (Emissions on the latest diesel engines are as low as their gasoline counterparts.) .Policy Links Fleet Management Policy (Section 405 of the Finance Management Manual) 184 r