HomeMy WebLinkAbout8. Village Manager's Report 04/21/2015Mount Prospect Public Works Department
INTEROFFICE MEMORANDUM
TO: ACTING VILLAGE MANAGER DAVID STRAHL
FROM: VEHICLE/EQUIPMENT MAINTENANCE SUPERINTENDENT
DATE: APRIL 13, 2015
SUBJECT: ACCEPT NJPA CONTRACT FOR THE PURCHASE OF ONE (1) NEW
2015 JOHN DEERE BACKHOE/LOADER 410L ($107,779.00)
Background
In the current budget, there are sufficient funds available to replace unit 2726. 2726 is a 2000
John Deere 410E Backhoe/Loader used by the Public Works Department to excavate water
mains, sewer lines, minor street repairs, and grounds work. It is also used to load sand, black
dirt, stone, gravel, and salt. During the winter months, it is used to help with snow removal
operations.
Replacement Policy
This vehicle 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, 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 should be recommended for replacement.
This vehicle scored a total of twelve (12) points indicating a higher rating and should be placed
on the priority list to be replaced. The vehicle condition evaluation form and summary report
have been attached as Exhibits A and B respectively. Additionally, I have included the life cycle
cost analysis on Exhibit C, which breaks out our total ownership cost.
Other Factors
If the service life is extended the following repairs should be performed:
Rebuild hydraulic system pump, hoses and cylinders. The work is estimated to cost
$11,000 including parts and labor.
• Rebuild diesel engine to regain performance, which is estimated to cost $15,000.00.
• Repair several transmission leaks, which may require an overhaul. The work is estimated
to cost $5,000.00 including parts and labor.
• Other needed repairs total $5,000.00 for an aggregate of $36,000.00.
Our current backhoe/loader doesn't have the digging power or lifting capacity it had when new.
These conditions are due to the hydraulic system/engine that has slowly worn in the past few
years and is operating at approximately 80% of its capacity. To bring the performance back to
Accept NJPA contract for the Purchase of one (1) New 2015 John Deere Backhoe/Loader 410L ($107,779.00)
April 13, 2015
Page 2 of 2
full capacity, the hydraulic system and engine would have to be completely overhauled. In my
opinion, to have these repairs done would not make financial sense. Additionally, the proposed
purchase has 16 more horsepower, 1,500 lbs. more lifting capacity, and 220 lbs. more backhoe
bucket force compared to our existing unit when new.
Discussion
The John Deere model we recommend purchasing is a 410L, which has a final Tier 4 diesel
engine. This diesel engine has better fuel economy and is cleaner burning due to tighter EPA
standards/technology. Additionally, this backhoe/loader has four wheel drive to perform better
off road and in the snow.
There is no local or State purchasing program for this vehicle. However, Public Works is part of
a national joint purchase cooperative, the National Joint Powers Alliance (NJPA), through which
the Village can procure this unit from West Side Tractor.
Bid Recommendation
I am recommending the Village Board accept the NJPA bid Contract Award #060311-JDC and
authorize the purchase of one (1) new 2015 John Deere Backhoe/Loader 410L, from West Side
Tractor Sales Co., of Wauconda, Illinois at a cost not to exceed $107,779.00, which includes a�
credit of $21,000.00 for our existing 410E trade-in. The NJPA Contract is publicly bid and
satisfies the public bidding requirements of the Village of Mount Prospect Purchasing Policy.
Funds for this proposed purchase are fully funded through the Vehicle Replacement Fund and
are available in the 2015 budget.
Our past experience and review of recent sales prices on GovDeals has shown these types of
specialized equipment have a higher resale value as a trade-in.
Works
JB
Attachments
C: Deputy Director of Public Works Jason Leib
mes R. Breitzman
Vehicle/Equipment Superintendent
H:\Administration\BIDS\RESULTS\2726 Backhoe Purchase -4-2015\2726 Backhoe-NJPA BID Purchase, 4-2015.docx
EXHIBIT A
Village of Mount Prospect
Vehicle/Equipment Condition Evaluation Form
Unit # 2726 Assigned Dept. /Div. Public Works/Water
Year: 2000 Make: John Deere Model: 410E Mileage: N/A
Hours: 4,710 Date of Evaluation: 1/15/15 Performed By: John Schnittker
System
Diagnosis
Estimated Repair Cost
Engine
Fair -20% Power Loss
Rebuild -$15,000.00
Transmission
Fair -Oil Leaks
$5,000.00
Differential
Good
Exhaust System
Good
Cooling System
Fair -Radiator Corrosion
$2,500.00
Brakes
Good
Tires
Fair -Front Tires
$1,500.00
Steering
Good
Suspension
Good
HVAC
Fair -Replace Blower Motor
$500.00
Electrical
Good
Body/Frame
Good
Interior
Fair -Window latches worn
$500.00
Other- Hydraulics
Total Estimated Repair Cost
Fair -Replace hoses, extend cyl
rebuild, Hyd pump rebuild
$11,000.00
$36,000.00
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.
EXHIBIT B
Village of Mount Prospect
Vehicle/Equipment Evaluation Summary Report
Unit # 2726 Assigned Dept. /Div. Public Works/Water
Year: 2000 Make: John Deere Model: 410E Mileage: N/A
Date of Evaluation: 1/15/15 Performed By: Jim Breitzman
Ratings:
Unit age: 15 Base Policy Age: 15 Points: 2
Mileage/Hrs: 4,710 Base Policy Mileage/Hrs: 5,000 Points: 2
Maintenance Cost:
Repair and Maintenance Cost: $ 30,153 _ Purchase Price: 73,900
Repair and Maintenance Percentage of Purchase Price: 41 % Points: 4
Condition Evaluation: (attach vehicle Condition Evaluation Form)
Estimated Repair Cost: $ 36,000 - Current Book Value: $ 21,000
Repair Cost Percentage of Current Book Value: 171 % Points: 4
Total Ownership Cost Per Mile:
(Lifetime Fuel + R&M + Purchase Price) $ 115,633
Less Salvage Value $ 21,000
Net Lifetime Costs $ 94,633
Divided by Mileage/Hours 4,710
Operating Cost Per Mile/Hour $ 20.09
Total Points: 12
Comments and other considerations:
This eauipment has Operated 4,710 hours durinsz its lifetime, which equals 141,300 engine miles.
Superintendent's recommendation:
This equipment has met its life expectancy and major repairs will be needed if service life is
extended any longer based on 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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Mount Prospect Public Works Department
?/
INTEROFFICE MEMORANDUM
TO: ACTING VILLAGE MANAGER DAVID STRAHL
FROM: FORESTRY/GROUNDS SUPERINTENDENT
DATE: APRIL 15, 2015
SUBJECT: BID RESULTS — EAB INSECTICIDE TREATMENT - $30,125
BACKGROUND
(P.
TREE CM USA
On April 13, 2015, sealed bids were opened for contractual treatment of selected parkway Ash trees
in attempt to prevent their infestation by the Emerald Ash Borer. As authorized by the Village
Board in 2009, we have been treating these trees annually with the hope that we will be able to
preserve a small population of high quality ash trees in our parkways. Previously, we have treated
all these trees with a product called Imidacloprid which must be applied each year. In 2012 we
started transitioning to a program in which all the trees will eventually be treated every two years
with a product called Tree -age. Our 2015-2016 specifications asked for pricing for treatments with
Tree -age only.
BID RESULTS
Fifteen invitational bids were mailed and a notice was published in a local newspaper. Eight bids
were received. The bid results were as follows:
Contractor
2015
Price/Inch
Extended 2015
Price (x 6500")
2016
Price/Inch
Extended 2016
Price (x 6900")
Total
Kinnucan Tree Experts
$4.25
$27,625.00
$4.25
$29,325.00
$56,950.00
TruGreen
$4.71
$30,615.00
$4.50
$31,050.00
$61,665.00
Sunrise Tree Care
$4.97
$32,305.00
$5.45
$37,605.00
$69,910.00
Nels J. Johnson Tree Experts, Inc.
$5.95
$38,675.00
$6.08
$41,952.00
$80,627.00
Kramer Tree Specialists, Inc.
$8.00
$52,000.00
$8.00
$55,200.00
$107,200.00
Winkler Tree & Landscape, Inc.
$7.37
$47,905.00
$8.61
$59,409.00
$107,314.00
McGinty Bros., Inc.
$7.48
$48,620.00
$8.51
$58,719.00
$107,339.00
Bartlett Tree Expert Co.
$9.00
$58,500.00
$9.00
$62,100.00
$120,600.00
BID DISCUSSION
In 2012 we put the treated ash trees into two groups to transition to the use of Tree -age, a two year
treatment. This product is believed by many to be the most effective treatment for killing EAB
larvae, and the unit price for treatment is reasonable. In 2015 we plan to treat Group A, consisting
HAF0RESTRY\W0RD\2015\MEM0-EAB INSECTICIDE BID 2015.DOCX
Page 2 of 2
Bid Results — EAB Insecticide Treatment - $30,125
April 15, 2015
of approximately 485 trees totaling 6500 diameter inches. In 2016 we plan to treat Group B,
consisting of approximately 340 trees totaling 6900 diameter inches. We will soon re -measure all
trees needing treatment. However, because the actual diameters of the trees might be slightly
different from our estimates due to growth, we have added a small contingency of $2,500.00 to each
year of the contract.
Note that this year's costs are less than our previous contract. For years 2013-2014 the cost per inch
was $4.87, in comparison to $4.25 for contract years 2015-2016.
It should be noted that Kinnucan has worked satisfactorily for us in the past. In 2007, Kinnucan
satisfactorily performed an EAB preventative treatment with a soil drench of Imidacloprid.
Additionally, they have performed our white light installation contracts from 2012 through 2014.
Finally, their submitted references were satisfactory.
BID RECOMMENDATION
There are funds available for this contract in the 2015 Budget. I recommend award of a two-year
contract for Tree -age treatment to the low bidder, Kinnucan Tree Experts, in an amount not to
exceed $30,125 for year one. Year two would be in an amount of $31,825.00 or whatever is
appropriated for this purpose in the 2016 budget.
I concur.
Dave Hu.l
an P. Dorsey
Director of Public Works
H:\FORESTRY\WORD\2015\MEMO-EAB INSECTICIDE BID 2015.DOCX