HomeMy WebLinkAbout04/01/2014 Purchase of One (1) New Brush ChipperMount Prospect Public Works Department
X INTEROFFICE MEMORANDUM
TO: VILLAGE MANAGER MICHAEL E. JANONIS
FROM: VEHICLE /EQUIPMENT MAINTENANCE SUPERINTENDENT
DATE: MARCH 20, 2014
SUBJECT: PURCHASE OF ONE (1) NEW BRUSH CHIPPER ($43,097.59)
Background
In the current budget, there are funds available to replace brush chipper 4521. 4521 is a 2003
Morbark, Model 13 used daily by Public Works to chip tree limbs and brush. It is also used
extensively for storm damage clean -up of downed and damaged trees and /or tree limbs.
Public Works has three (3) brush chippers. One (1) is a 15" Vermeer chipper and the other two
(2) are Morbark 13" machines.
Tree removal and maintenance workloads have increased dramatically in the last several years;
primarily due to increased storm activity and the Village -wide EAB infestation. Consequently,
staff has recommended that we move to the next capacity size of 15" allowing for the disposal of
all but the largest tree trunks.
Replacement Policy
This equipment has been evaluated utilizing our detailed comprehensive replacement policy.
This policy uses a point -based criterion, which rates the following four (4) major factors to a
baseline when considering a unit for replacement: Age, mileage /hours, repair & maintenance
(R &M) cost, and condition of the body /mechanical components. A point total equaling or
exceeding eleven (11) out of sixteen (16) indicates that the vehicle /equipment should be
recommended for replacement.
4521 scored a total of thirteen (13) points indicating a high rating, and is recommended for
replacement. The equipment condition evaluation form and summary report have been
attached as Exhibit A and B respectively. Additionally, I have included the life cycle cost
analysis on Exhibit C, which breaks out our total ownership costs.
Joint Purchasing Contract Pricing
In preparation for this proposed purchase, staff learned that satisfactory commercial chippers
are available via the following joint purchase programs:
Contract/Vendor
GSA/Alexander Eq
Lisle, IL
Year /Make /Model
2014 / Morbark
Model M15R
Trade -In
Bid Price Allowance
$53,097.59 $10,000.00
Bid Price
Less Trade -In
$43,097.59
NJPA/Vermeer 2014/Vermeer $52,673.00 $9,500.00
Aurora, IL Model BC1500
$43,173.00
March 20, 2014
Purchase of Brush Chipper ($43,097.59)
Page 2 of 2
Discussion
The Morbark chipper is available at the lowest overall cost. It is available via the United States
General Services Administration (GSA) joint purchasing program. The GSA is a federal agency
that supports the functions of other federal agencies by facilitating the procurement of a wide
range of products and services. Unfortunately, the Village is not eligible to participate in this
GSA contract because we are not part of the federal government.
However, the local Morbark dealer, Alexander Equipment Company of Lisle, Illinois, has agreed
to honor the GSA pricing and provide the indicated chipper at a total cost not to exceed
$43,097.59.
The Village Attorney has determined that the Village Code permits the Village Board to waive
the requirement for competitive bids, in such a manner as it may approve, including its reliance
on GSA nationwide contract pricing, as it would be in the best interests of the Village.
The Vermeer chipper is available via the National Joint Powers Alliance (NJPA). The Village is
a member of the NJPA and has successfully procured equipment via their joint purchasing
programs in the past.
There are no chippers available on the State of Illinois Central Management Services Joint
Purchasing Program.
The trade -in values noted are bona fide; not estimates. They are based on valuations made by
local dealer representatives following on -site inspections.
It is the opinion of staff that a separate bid letting for this purchase would not yield lower costs.
The above referenced joint purchasing programs incorporate volume discounts and avoid local
dealer costs associated with bid submittals.
Finally, staff is aware that the implementation of USEPA Tier 4 emission requirements is
imminent. As a result, we expect that deferment of this proposed purchase will likely result in
higher replacement costs; as much as $20,000 higher next year. Chipper manufacturers have
advised us that this increase is the cost of compliance with the Tier 4 emission requirements.
Purchase Recommendation
I recommend waiving the requirement for competitive bids for the purchase of one (1) new 2014
Morbark model M15R, a trailer mounted brush chipper, and accept the lowest cost proposal
submitted by Alexander Equipment Company, Inc., of Lisle, Illinois in an amount not to exceed
$43,097.59, which includes a $10,000 trade -in. There are sufficient funds available for this
proposed purchase in the 2014 budget.
/
J es R. Breitzman
hicle /Equipment Superintendent
Director of Public Works
JB
Attachment
cc: Deputy Director of Public Works Jason Leib
H:1Administration \BIDS \RESULTS \Chipper Purchase4521GSABidWVR3- 2014.doc
EXHIBIT A
Village of Mount Prospect
Vehicle/Equipment Condition Evaluation Form
Unit # 4521 Assigned Dept. /Div. Public Works - Forestry
Year: 2003 Make: Morbark Model: 13 Mileage: N/A
Hours: 1542 Date of Evaluation: 2/4/14 Performed By: Jim Breitzman
System
Diagnosis
Estimated Repair Cost
Engine
Good
Some major repairs are needed, but unit can remain in service a little longer
in current condition.
Transmission - Clutch
Fair -Due for rebuild
$2,000.00
Differential
N/A
Exhaust System
Fair - Muffler
$400.00
Cooling System
Fair -Water pump
$500.00
Brakes
Good
Tires
Fair
$500.00
Steering
N/A
Suspension
Fair -worn
$2,000.00
HVAC
N/A
Electrical
Fair - corroded wires
$800.00
Body /Frame
Poor- Rusted badly
$3,000.00
Drum Bearings
Fair- Replace
$1,000.00
Other - Hydraulic System
Total Estimated Repair Cost
Fair - Hydraulic hoses
$2,500.00
$12,700.00
Diagnosis Code
Code Description
Good
Systems are functioning well and no major repairs are expected.
Fair
Some major repairs are needed, but unit can remain in service a little longer
in current condition.
Poor
Major repairs are required as soon as possible to ensure unit safety and
reliability.
F.XNTRTT R
Village of Mount Prospect
Vehicle /Equipment Evaluation Summary Report
Unit # 4521 Assigned Dept. /Div. Public Works- Forestry
Year: 2003 Make: Morbark Model: 13 Mileage: N/A
Date of Evaluation: 2/4/14 Performed By: Jim Breitzman
Ratings:
Unit age: 11 Base Policy Age: 8 -22
Mileage/Hrs: N/A / 1,542 Base Policy Mileage /Hrs: N/A
Maintenance Cost:
Points: 3
Points: 2
Repair and Maintenance Cost: $ 16,312.00 _ Purchase Price: $ 29,000.00
Repair and Maintenance Percentage of Purchase Price: 56 % Points: 4
Condition Evaluation: (attach Vehicle Condition Evaluation Form)
Estimated Repair Cost: $ 12,700.00 = Current Book Value: $ 10,000
Repair Cost Percentage of Current Book Value: 127 %
Total Ownership Cost Per Mile:
(Lifetime Fuel + R &M + Purchase Price) $ 49,190
Less Salvage Value $ 10,000
Net Lifetime Costs $ 39,190
Divided by Mileage/ 1,542hrs
Operating Cost Per Mile/ $ 25.42
Points: 4
Total Points: 13
Comments and other considerations:
This machine is estimated to cost $20,000 more next year based on EPA Teir 4 final emission
standards for 2015.
Superintendent's recommendation: This machine has met its life expectancy and several major
repairs will be needed if service life is extended any longer based on current condition.
Total Point Evaluation A point total equaling or exceeding eleven (11) indicates that the vehicle should be
recommended for replacement. The point total is used to rank its replacement priority. The larger the number the
higher the replacement priority will be.
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