CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
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Approve the award of Cooperative Procurement 20-200, Unit 750 Equipment Replacement, to McCann Industries Inc. for an amount not to exceed $314,202
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DEPARTMENT: Department of Public Works
SUBMITTED BY: Richard Dublinski, Director
BOARD/COMMISSION REVIEW:
N/A
BACKGROUND:
Unit 750 was reviewed and approved by the Fleet Economic Committee and Fleet Services Manager for replacement in the 2020 budget. Heavy equipment is scored for replacement based on four criteria: age, usage, condition and repair costs. Recommending heavy equipment for replacement requires a score 28.0 or greater. Unit 750 scored 37.69. Additionally, the unit’s lifecycle is eleven years; Unit 750 is twenty-one years old.
DISCUSSION:
Unit 750 is a 1999 John Deere 744H-MH articulated loader used by the Water Utility - Water Reclamation Division at the Springbrook Water Reclamation Center. The loader is used to safely stack, move, and load biosolids; grade rock roads around the plant; and load dump trucks with sand for filters.
The Springbrook Water Reclamation Center processes over seven billion gallons of water each year and produces about 2,000 dry tons of nutrient-rich fertilizer called biosolids in the process. The centrifuges handling biosolids are run a minimum of 3 times a week ranging in run time from 6 to 14 hours. The articulated loader is used every 2 to 3 hours to move the pile from the conveyor area, stacking it in the corresponding production pile. Without the articulated loader, staff would not be able to keep up with the production of biosolids coming from the centrifuges.
Unit 750 is the only articulated loader of this capacity in the Water Utility’s fleet. There is no alternate unit available to complete these tasks when this unit is down. If this unit is not replaced, extensive repairs to the hydraulic systems and tires totaling more than $50,000 will be required.
The unit will be replaced with a Case 1021G articulated loader. The new unit is available on the Sourcewell Cooperative, an approved cooperative through McCann Industries Inc., Contract # 32119-CNH.
The current vehicle will be traded in to McCann for $41,000 as part of the purchase of the new vehicle Using the City’s specifications, McCann Industries Inc. has quoted the articulated loader in the amount of $314,202; a cost breakdown is provided below.
|
Original Price |
Less Cooperative Discount |
Less Trade-In |
Net Price |
|
$540,124 |
($184,922) |
($41,000) |
$314,202 |
The unit will be delivered in approximately 120 days.
FISCAL IMPACT:
CIP #: VEH002
Water and Wastewater vehicle replacements are expensed to the vehicles and equipment account listed below. A total of $450,000 is budgeted for the replacement of Unit 750 in 2020. The requested award of $314,202 is within the budgeted amount for this expense.
|
Account Number |
Fund Description |
Total Budget Amount |
|
41251500-551505 |
Water and Wastewater |
$1,201,690 |