HomeMy WebLinkAbout5. Village Manager's Report 08/21/2012Mount
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Mount Prospect Public Works Department
INTEROFFICE MEMORANDUM
TO: VILLAGE MANAGER MICHAEL E. JANONIS
FROM: DIRECTOR OF PUBLIC WORKS
DATE: AUGUST 16, 2012
SUBJ: RFP RESULTS FOR AUTOMATED METER READING (AMR) /
AUTOMATED METERING INFRASTRUCTURE (AMI) SYSTEM
($2,192,995)
1. Background
1.1. General
The Village of Mount Prospect operates a water distribution system that includes over
11,200 metered accounts. Water usage in the Village's distribution system is collected
two ways. For most of the system, water use data is collected from readings submitted
by residential customers (approximately 10,000 accounts). The remainder of the system
is read using a wireless drive -by automated meter reading (AMR) system (TRACE) that
handles commercial /multi - family customers (approximately 1,200 accounts).
Residential properties, which include single family homes and some townhomes,
currently provide meter reads with their water bill payments every other month. Reads
can be submitted by mail, phone or email. Finance personnel must manually enter the
reads into the billing software. Currently, Finance has four different billing cycles for
residential accounts. Commercial and multi - family water accounts are read by staff
monthly using the TRACE AMR system.
1.2 Existing AMR System is Obsolete
The Village's AMR system has been in place since the early 1990s when it replaced a
telephone -based reading system (Access Plus) that had reached the end of its useful
life. The current AMR system is a wireless drive -by system where staff uses a handheld
data collector to collect monthly meter reads from the 1,200 commercial and multi - family
accounts. The current reading process takes two employees two days to collect all 1,200
reads. The meter reads are uploaded from the collector to the associated reading
software, which in turn creates a file that is sent to Finance for billing. The system
appears simple and efficient; however, the reading components and associated software
are exhibiting serious failures signifying that the system has exceeded its useful life.
Badger Meter Company of Brown Deer, Wisconsin provided the TRACE AMR system to
the Village under a license agreement from American Meter Company. When the
license agreement between Badger and American Meter ended in 2008, Badger almost
immediately discontinued the product line leaving dozens of water utilities stranded
without access to new or replacement hardware.
Page 2 of 10
RFP Results for Automated Meter Reading (AMR) /Automated Metering Infrastructure (AM[) ($2,192,995)
August 17, 2012
In addition to Badger's decision to discontinue the production of components, all service
and support of the hardware has ceased. Since 2008, the Village has been acquiring
surplus stock from vendors and utilities around the country in order to keep our AMR
system alive. The available stock has been exhausted and only a few remaining
components remain in the Village's parts inventory leaving no repair solutions for future
mechanical issues. At this time, the Village is one of the last remaining TRACE drive -by
systems in the United States.
Also, battery and AMR equipment failures have been increasing due to the lack of
replacement parts. The resulting AMR failures require staff to manually visit the property
to physically read the water meter. Staff currently reads approximately 100 meters each
month requiring between 20 to 30 man -hours per month. This number is increasing by
about 10 accounts per month due to failures with the aging system (primarily dead
batteries). The batteries that are failing at an alarming rate are found in the AMR
module that transmits the reads to the handheld data collector. As previously stated the
modules are no longer made or available.
When the batteries start to die in AMR module, reads become intermittent and often
erroneous reads occur. This issue causes additional staff time of about six to ten hours
per month to identify read errors prior to billing. Ultimately, when the module starts
submitting incorrect reads, staff no longer can read the meter with the handheld device
and must begin reading the meter manually on a monthly basis.
The task of reading an increasing amount of meters on a monthly basis is further
complicated by limited access to the meter. Many commercial properties have the
meters installed behind locked doors, in basements, or other areas which are not easily
accessible to the Village. Not only is additional time needed to read the meter, but
significant man hours are needed to setup appointments.
In addition to meters located in basements and other inaccessible areas, there are
several metering installations in pits or other areas which create confined space hazards
for meter readers. Locations that are designated confined spaces require additional time,
equipment, and personnel to safely enter the space to obtain the readings.
Finally, the system has been experiencing significant degradation in signal strength
between the AMR modules and the handheld collector. The decreased signal strength
is requiring personnel to exit the vehicle and walk up to buildings, or in some instances,
enter buildings to effectively communicate with the meter using the handheld device.
Essentially the "drive by system" has become a "walk up" system. This significantly
adds to staff time and will only increase as the signal strength continues to decline.
1.3 Existing Self - Reporting Read System is Inadequate
As previously mentioned, the AMR reading system is one of two reading methods
utilized by the Village. The primary method for obtaining water meter readings is for
residents to self report their water consumption. Presently, almost 10,000 accounts are
primarily read using this system.
Page 3 of 10
RFP Results for Automated Meter Reading (AMR) /Automated Metering Infrastructure (AMI) ($2,192,995)
August 17, 2012
This self - reporting system requires significant personnel time in the back office to
manually enter 10,000 reads (5,000 reads a month). Finance staff spends between 3 -4
hours per day, about 1,000 man -hours annually; entering water meter read data from
customers. Currently the readings are submitted via several portals including mail,
phone, and email /internet. All of these readings must be compiled, interpreted and
entered into the billing software.
Due to the nature of self reporting and an inherent potential for incorrect reads, Public
Works also conducts an audit read program. Public Works staff read approximately
3,000 meters annually as part of a quality control effort to ensure the accuracy and
operability of the meters. One part time employee is dedicated solely to reading meters
annually. In addition, a considerable amount of back office time is devoted to managing
the program, setting up appointments, creating mailings, answering questions from
customers, and updating consumption profiles by manually comparing audit reads to
self- reported reads.
Staff also devotes considerable time and effort soliciting customers for reads. Typically,
25% of customers fail to submit reads every 4 -month period. To obtain these reads,
staff sends read request letters, tags properties with notices, and ultimately discontinues
water service if no read is obtained. In 2011, 2,682 read request letters and 760 re -read
requests were sent to customers; 311 properties were tagged with doorhanger notices
multiple times, and water service was shut -off at 99 homes for failure to supply water
meter readings.
In summary, maintaining the self - reporting meter reading system costs in excess of
$100,000 per year.
However, fiscal expenses are not the only costs associated with self - reporting. One
significant, and generally unavoidable, consequence of a self - reporting system is that
billing periods are inconsistent. A common and widely recognized utility billing best
practice is the establishment of shorter and more consistent water billing cycles.
Specifically, the Finance Department would like to bill all accounts (both commercial and
residential) on a monthly basis and establish a consistent 30 -day billing period. These
modifications will improve cash flow and facilitate better financial management for both
staff and customers. Presently, wildly variant billing periods make it difficult to identify
problems such as potential leaks or high bill complaints. In 2011, 59 payment plans
were established following high bills. In most cases, the high bills were generated
following several inaccurate consumption estimates. Neither the TRACE AMR system
nor the customer self- reporting read system is capable of adequately supporting shorter,
more consistent billing cycles.
In addition to the fiscal cost, the inherent problems of self - reporting make staff inefficient
and, more importantly, engender considerable customer ill will.
Page 4 of 10
RFP Results for Automated Meter Reading (AMR) /Automated Metering Infrastructure (AMI) ($2,192,995)
August 17, 2012
2.0 Request for Proposals
2.1 Problem Statement
With the current commercial /multifamily AMR infrastructure failing and beyond repair,
there is an immediate need to procure new water meter reading technology. In addition,
there is also a need to procure a more efficient reading method for residential accounts.
2.2 RFP Backaround
Staff investigated the various AMR systems that were in use around the country in order
to prepare a request for proposals. As research progressed, it became clear that two
types of AMR systems existed that could potentially meet staff goals. The first was a
drive by system similar to our existing TRACE system. The second was a fixed based
system that collected and transmitted reads using wireless technologies.
After substantial review, staff decided that fixed -based reading systems provided the
best opportunity to meet Village goals for the new reading system.
Fundamentally, staff reached this conclusion because both drive -by and fixed based
solutions would require the installation of the same digital encoder transmitters on each
meter; a substantial portion of the project cost. The net cost difference between a drive -
by system and fixed based system was estimated to be $120,000 - $150,000; the cost of
the data collectors, repeaters, and other infrastructure needed to backhaul meter data to
the billing computer in a fixed base system. These costs are not required to operate a
drive -by system. Staff estimated that a fixed base system could recoup this cost within
the first five (5) years of operation primarily by avoiding the staff time necessary to
operate the drive -by system. Staff assumed that any new automated meter reading
system should be expected to operate effectively for 20 years. Consequently, a 5 -year
payback period on a 20 -year project life cycle was considered acceptable.
A fixed -base system does not require a staff member to drive a route to collect the meter
reads or enter a home to read a meter. Meter reads are collected by a wireless system
that has fixed data collection points located throughout the Village. Wired to the meter
is an AMR module that transmits the meter reading to strategically placed data
collectors. The data collectors receive the reads from the AMR modules and transmit
the reads for thousands of meters to a dedicated server. The reads are transferred from
the data collectors to the server using a cellular connection, Ethernet connection, Wi -Fi
connection, or radio connection. Meter read data is transmitted multiple times per day
typically providing 24 hourly readings for each meter with a high degree of accuracy;
exceeding 99 %. A fixed -base system eliminates the staff and vehicle costs associated
with other methods of data collection. Readings are sent automatically according to the
schedule programmed into each module.
A fixed -base AMR/AMI solution for the Village has several benefits for both residents
and the Village:
• There will be a significant reduction of staff time in collecting, entering and
verifying meter reads.
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RFP Results for Automated Meter Reading (AMR) /Automated Metering Infrastructure (AMI) ($2,192,995)
August 17, 2012
• With multiple reads being automatically collected each day, the use of staff to
perform physical reads as part of the 'final read' effort will be eliminated. There
will be a decrease in the amount of time needed for completing the transfer
stamp or account transfer process by eliminating appointments for staff to
physically obtain the final read as these will no longer be necessary. Annually,
Public Works staff performs approximately 500 final water meter readings (2011-
454, 2012 -517) requiring between 250 -300 man hours. The elimination of
physical final read will also reduce the inconvenience to residents during these
processes.
• The elimination of having residents perform their meter reading will save
customer time and inconvenience. This also saves additional staff time by
eliminating the need to verify some of the meter reads.
• There will be savings from the elimination of the pursuit of customers who have
failed to submit timely water meter reads. Additional savings will come from not
providing notices, tags and from the time involved with the occasional water turn-
off for recalcitrant customers.
• The reduction of meter reading errors from customers and staff will greatly
improve the water billing process and resident satisfaction.
• Meter read accuracy will increase as the errors possibly introduced during data
handling are significantly reduced.
• The collection of better water use data for customers and customer classes will
allow the Village to monitor and report consumption data for regulatory and
conservations purposes.
• Further staff time savings occur from eliminating the intensive physical effort put
forth in monitoring shut -off accounts. Public Works regularly check shut -off
properties to ensure that water is off until the account is made current. The AMI
software can monitor selected accounts to alert staff on water use.
• Finance Staff will save the 3 -4 hours per day (approximately 1,000 hours per
year) from not having to manually enter customer reads into the water billing
software.
2.3 RFP Results
Staff sent specifications to several qualified vendors asking for proposals to construct
a fixed based meter reading system in the Village of Mount Prospect. The vendors
were selected by staff following a robust vetting process that included on -site and
telephone interviews with water systems that have existing fixed based AMR
systems; pre -RFP demonstration interviews with fixed base AMR vendors; and
extensive Internet /white paper research. Consequently, staff is confident that all of
the vendors submitting proposals in response to our RFP have sufficient resources,
experience, and adequate product lines to successfully install an effective and
reliable fixed base AMR system.
The RFP document requested proposals to replace the existing
commercial /multifamily automated meter read system as a core project. The
specifications also requested proposals to expand the fixed based network to include
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RFP Results for Automated Meter Reading (AMR) /Automated Metering Infrastructure (AMI) ($2,192,995)
August 17, 2012
all residential properties as a supplemental project. Seven (7) proposals were
received.
The proposals contained detailed descriptions about the vendor, the products to be
used, system capabilities, and overall project approach.
Perhaps most importantly, the RFP asked vendors to demonstrate a strong history of
designing, installing, and maintaining legacy AMR systems for a long period of time.
A 20 -year life cycle was suggested as a desirable design parameter. In addition,
proposals were asked to describe AMR systems capable of providing a high degree
of read reliability (99 %).
All proposals but one (1) adequately addressed the required parameters identified in
the RFP document. The proposal submitted by Water Products Itron only provided
designs and costs for a system to read commercial accounts (approximately 1,200
meters). They did not submit a proposal to expand their system to include residential
accounts.
Accompanying each proposal was a separate cost proposal form. The costs for
installing a fixed base automated meter reading system for all water accounts (both
commercial and residential) are identified in the table below:
Firm
Cost Pr
Badger Meter
$1,718,732
United Systems Itron
$2,102,241
Fer usson /Datamatic
$2,142,995
Aclara Technologies
$2,306,995
HD Waterworks Sensus
$2,678,835
Mueller Systems
$2,721,864
Water Products Itron
$633,606*
*Commercial onl
2.4 Discussion
In order to address the previously identified deficiencies that affect both the existing
drive -by AMR system (TRACE) and the Village's self - reporting read system, staff
evaluated all proposals on the basis of a complete, comprehensive meter reading
system. That is, a system capable of providing accurate, reliable, monthly reads for all
of the Village's commercial (1,200 accounts) and residential (approximately 10,000
accounts) meters.
Because all of the vendors were solicited and were pre - qualified with respect to
experience and capabilities, staff elected to differentiate proposals based on AMR
systems that:
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RFP Results for Automated Meter Reading (AMR) /Automated Metering Infrastructure (AMI) ($2,192,995)
August 17, 2012
Were not proprietary with regard to the type of water meter used, in industry
terms, a system that was 'meter neutral'.
Were not affected by the seasonal tree coverage changes or building stock
changes issues with regard to the radio technology used.
Provided robust back -up or system redundancies.
2.4.1 Meter Neutralit
Staff reviewed the various systems and worked hard to identify those AMR/AMI systems
that did not favor one particular water meter over another or that require a proprietary
water meter. This meter neutrality allows the Village more choices in the future in
acquiring water meters. This is important as water meters have become a commodity
item with most meters sold today meeting recognized standards. Currently, the Badger
TRACE system while claiming to be meter neutral has been problematic when
interacting with other meter manufacturers. To require meter neutrality allows staff to
seek competitive pricing for the annual meter replacement efforts. Also, the AMR/AMI
manufacturer who is meter neutral has to keep current with offering modules that
interface with numerous meter manufacturers or their market will be severely limited.
On this basis, all of the proposals were "meter neutral" except for Sensus. The Sensus
proposal stipulated an interface with their proprietary Neptune water meter.
2.4.2 Radio Technology
While most AMR systems use the unlicensed 900 MHz radio frequency, the method of
using the frequency is different depending on the vendor. Several vendors use a line -of-
sight collector system while others use a mesh network. Line -of -sight (LOS) systems
have the meters reporting directly to one or more data collectors and it is this redundant
reporting that provides read efficiency. LOS systems require a detailed radio
propagation study to render an effective design. The proposals using LOS systems
would still have to prepare a propagation study to determine the proper number of
repeaters and /or collectors that are needed for the Village's system. There is a chance
that additional repeater or collectors may be needed to obtain better reception at
additional cost. Staff places a high value on proposals where the initial data collection
system is as complete as possible. All systems could be expanded to provide better
coverage as needed at additional cost.
The other technology being proposed is the use of a mesh radio network. The AMR
modules (transmitting unit connected to the meter) in a mesh network communicate
between themselves or hop between modules to pass along read data until the data
reaches the data collector. The mesh network has been described as self - healing in that
there can be a number of ways that a meter read gets to the data collector. Currently the
Village uses line -of -sight radio and Wi -Fi for the water telemetry and remote site
security. There have been issues with the Village's extensive tree canopy blocking line
of sight during some periods of the year. As mesh technology is not height dependent;
staff feels that the mesh network is a more robust, redundant methodology for meter
reads when compared to line -of- sight.
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RFP Results for Automated Meter Reading (AMR) /Automated Metering Infrastructure (AMI) ($2,192,995)
August 17, 2012
Also, some AMR/AMI systems use a licensed radio frequency in lieu of the unlicensed
900 MHz frequency but staff finds little advantage for this. With a licensed frequency, the
signal is better protected from other interference. Most of the unlicensed radio systems
have developed a technique where they automatically switch or `hop' frequencies in the
allowable bandwidth to avoid interference.
Staff does not find significant value in having a licensed versus unlicensed frequency as
all frequencies are regulated to provide protection from harmful interferences. To this
end, the Village -owned water system's supervisory control and data acquisition system
(SCADA) utilizes a Federal Communications Commission licensed frequency for
communication with the central computer. Although flawless when commissioned, years
later one endpoint experienced significant interference when an unknown nearby radio
source utilizing an adjacent frequency was unexpectedly introduced. Due to a limited
ability to "hop" frequencies, it was necessary to install filters to correct the problem.
On this basis, six (6) of the proposals utilize line -of -sight (LOS) radio systems (Mueller,
Sensus, Aclara, Badger, United Itron, and Water Products Itron) and one (1)
( Datamatic), utilizes a mesh radio network.
Two (2) of the proposals utilize licensed frequencies ( Sensus and Aclara). Five (5)
utilize unlicensed spectrum hopping frequencies (Mueller, Datamatic, Badger, Itron,
United Itron, and Water Products Itron).
2.4.3 Backup or System Redundancy
The ability to provide continuous parallel and redundant pathways for transmitting meter
reads via radio waves is a quintessential component of a reliable AMR system. If the
commonly used pathway fails, alternative pathways must be immediately and
automatically available to transport the meter reads. If this capability is less than robust,
it will be necessary to utilize drive -by technology or manual readers to obtain meter
reads.
Generally, line -of -sight (LOS) systems seek to establish system redundancy by installing
additional towers to host data collectors. In short, elevation is the answer. LOS vendors
design their systems so that each meter can transmit to 2 or 3 towers. In the event the
commonly used pathway is disrupted, the meter should be able to transmit it's read to
one of the other towers. To be effective, the towers are generally at least 70 feet high.
Staff recognizes that 70 -foot towers can be conspicuous features in neighborhood
settings. Additionally, changes in the tree canopy and building heights should be
anticipated over a 20 -year term. Accordingly, the potential exists that post- contract
modifications to the data collection network might be necessary to circumvent trees and
buildings during the outlying years of the system life cycle. The cost to install an
additional 70 -foot pole or tower currently ranges from $10,000 to $25,000.
As previously described, mesh networks accomplish redundancy by perpetually
transmitting their reads to both data collectors and all nearby meters. If the common
pathway with the data collector is interrupted, perhaps by a tree branch that grows too
Page 9 of 10
RFP Results for Automated Meter Reading (AMR) /Automated Metering Infrastructure (AMI) ($2,192,995)
August 17, 2012
thick, the interruption is circumvented by passing the read to adjacent meters. In turn,
the adjacent meters "hand -off' the read to the next meter until it can be transmitted to a
data collector. The number of "hand- offs" is virtually unlimited. In the event a dead
zone, an area without meters, is encountered before the read reaches a data collector,
the zone can be spanned by simply installing a $65 meter transmitter. The transmitter
can be installed almost anywhere and does not require a tower.
All of the LOS systems (Mueller, Sensus, Aclara, Badger, United Itron, and Water
Products Itron) utilize towers to establish radio system redundancy.
The mesh network system (Datamatic) utilizes adjacent meter transmitters (essentially
all 11,200 meters) to establish radio system redundancy.
Staff also determined that the capability of replacing the battery in the various modules is
an essential criterion for maintaining a reliable system for the full term of the product life.
Most of the proposals identified lithium -based batteries as the primary power source.
Staff recognizes that improvements in lithium battery technology have indeed extended
the product life, However, our own experience with this technology suggests that it is
unrealistic to expect most will last for 20 years. In fact, we believe that very few will last
for 20 years and that most will have to be replaced in 13 -15 years.
This conclusion is relevant because it differentiates proposals based on how batteries
are installed. Some AMR systems install batteries as integrated components of the
transmitters and cannot be replaced without replacing the entire transmitter. Other
systems utilize a "plug and play" approach and allow battery replacement without
replacing the entire transmitter module. There is a considerable cost savings in
replacing only the battery compared to replacing the entire transmitter unit.
All vendors offer a 20 year warranty on batteries and /or transmitter modules. Almost
uniformly, the first 10 years of these warranties provide complete replacement of the
battery and /or module at no cost with a prorated warranty the second 10 years. At 13 -15
years, the cost of replacing a complete transmitter module, with integral battery, is
approximately $65. Comparatively, the cost to replace a stand -alone battery is
approximately $17.50.
Mueller, Sensus, Aclara, Badger, United Itron, and Water Products Itron all integrate
batteries into the transmitter module and require complete replacement of the transmitter
module if the battery fails.
Datamatic allows replacement of the battery without replacing the transmitter module.
2.5 Conclusion
The proposal submitted by Water Products Itron did not provide a comprehensive
solution for metering all accounts and is not considered responsive to the RFP
document.
Page 10 of 10
RFP Results for Automated Meter Reading (AMR) /Automated Metering Infrastructure (AMI) ($2,192,995)
August 17, 2012
All of the remaining proposals were submitted by pre - qualified vendors capable of
designing and installing effective AMR systems. All of these proposals facilitated
achievement of desired outcomes including more accurate billing; more frequent and
consistent billing cycles; fewer billing discrepancies; reduced staff time and increased
staff efficiency; and improved customer service.
All of the responsive proposals utilizing line -of -sight (LOS) radio technology offer
solutions utilizing similar designs and comparable capabilities. For the most part, these
proposals can be equitably differentiated on cost. Of these, the lowest cost complete
proposal was submitted by Badger Meter. The calculated cost to implement Badger's
proposed solution throughout the Village -owned water distribution system is $1,718,732.
This proposal is the lowest overall cost of all proposals received.
The sole mesh network design proposal was submitted by Datamatic. The total
calculated cost of Datamatic's solution is $2,142,995. This proposal is $424,263 higher
than the lowest overall cost submitted by Badger Meter and is the third lowest cost
overall.
Although not the lowest cost, it is the opinion of staff that the Datamatic proposal
provides the most efficient and reliable design. Specifically, we have concluded that the
mesh network technology provides the best approach for managing and adapting to
interruptions in radio transmission pathways. Our experience with radio -based data
collection suggests that this capability is the perhaps the most important determinant of
system success. In addition, it is a "meter neutral" platform that will facilitate future
meter purchases as competitively bid commodities and provides for future battery
replacements that will minimize long -term maintenance costs.
2.6 Recommendation
I recommend that the Village Board authorize staff to negotiate a four (4) -year contract
with Fergusson / Datamatic for the design and installation of a fixed base automated
meter reading system for a cost not to exceed $2,192,995. This award includes the
calculated project estimate of $2,142,995 as well as a $50,000 contingency to
accommodate inventory discrepancies and unforeseen circumstances.
$965,000 is available in the 2012 budget to facilitate this proposed expenditure.
Expenditures in subsequent years will be drawn from available water fund balance at
levels authorized by the Village Board. Finance Director Dave Erb confirms that the
water enterprise fund can support this proposed procurement plan utilizing existing user
fees. Staff does not anticipate a need to issue debt, increase water rates, or defer high
priority capital improvements in order to support this proposed project.
cc: Director of Finance David Erb
Deputy Director of Public Works Jason Leib
Water /Sewer Superintendent Matt Overeem
File
Sean P. Dorsey
VB AWARD RECOMMENDATION AMR.DOCX
ountprospect 7 Mount Prospect Public Works Department
n/ INTEROFFICE MEMORANDUM
TO: VILLAGE MANAGER MICHAEL E. JANONIS
FROM: VEHICLE MAINTENANCE SUPERINTENDENT
DATE: AUGUST 14, 2012
SUBJECT: SEALED BID RESULTS FOR ONE (1) NEW 45' REARMOUNT AERIAL LIFT
TRUCK WITH FLATBED BODY ($148,315)
Background
In the current budget, there are sufficient funds available to replace unit 4523, which was
deferred from 2010. 4523 is a 1995 International 4900 with a service body and 36' aerial used
by the Public Works Department's Forestry Division. This truck is primarily utilized for
maintaining the Village's parkway tree population (tree trimming, tree removals, cabling,
inspections, etc.).
In preparation for soliciting bids, we had several types of aerial trucks, from various vendors,
demonstrated at our public works facility over the past two years. The Forestry Division also
wanted to make sure the aerial specified would have the over - center capability, higher working
height, and greater side reach compared to our current unit. The additional 9' feet of working
height and greater side reach is necessary as our tree population has grown much larger in the
last eighteen years since this truck was purchased.
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 according 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 fifteen (15) points indicating an extreme rating and should be
placed on the highest priority to be replaced. The vehicle 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.
Bid Results
On Monday, July 30, at 1:00 P.M., sealed bids for the proposed purchase of one (1) new 45'
rearmount aerial lift truck were opened and read aloud. Three (3) invitational bids were
distributed and a public notice was placed in a local newspaper as required. Three (3) bids
were received, which one (1) responded with a no bid. The results are as follows:
Page 2 of 2
Sealed Bid Results for One (1) New 45' Rearmount Aerial Lift Truck w/ Flatbed Body ($148,315)
August 14, 2012
Bidder Make /Model Delive Bid Price
Dueco, Inc. International 4300, 270 days $148,315
Waukesha, WI Terex Utilities SC45
Sauber Mfg. Co. International 4300, 150 -180 days $191,426
Virgil, IL Altec L45
Power Eq. Leasing Co. NO BID NO BID
Discussion
The lowest bidder, Dueco, Inc. of Waukesha, Wisconsin, ( Dueco) complied with the majority of
our bid specifications. However, there were a few acceptable deviations. Specifically, our bid
documents stipulated a galvanized steel body and cab guard with a wood flatbed floor. Dueco
was unsuccessful in locating a sub - contractor to completely galvanize the steel components as
specified. Instead, they have proposed an excellent long lasting alternative: an all aluminum
body and cab guard, including a diamond plate floor with matching materials. All of these
aluminum components will be properly prepared before protecting with paint to match the cab of
the truck.
Reference checks for Dueco indicated sufficient experience and an acceptable work history. In
addition, public works mechanics and maintenance employees reported a high degree of
satisfaction with the Terex /Hi- Ranger aerial demonstration units.
Bid Recommendation
therefore recommend the Village Board accept the lowest responsible bid for the purchase of
one (1) new 45' rearmount aerial lift truck with flatbed body aforementioned per our
specifications as submitted by Dueco, Inc. of Waukesha, Wisconsin in an amount not to exceed
$148,315.00. There are sufficient funds available for this proposed purchase within the current
Public Works Vehicle Replacement budget.
(J ?mes R. Breitzman
Vehicle Maintenance Superintendent
I concur with the recommendation
--iearrl✓. uorsey
Director of Public Works
JB
Attach
c: Sean P Dorsey, Director of Public Works
Jason Leib, Deputy Director of Public Works
H:\Administration \BIDS \RESULTS \4523 Aerial Truck -Bid Results, Rec for VM, 8- 14- 12.doc
Village of Mount Prospect
Vehicle /Equipment Condition Evaluation Form
Unit # 4523 Assigned Dept. /Div. Public Works /Forestry
Year: 1995 -in service 1994 Make: International Model: 4900 Mileage: 77,861
Hours: 13,338 Date of Evaluation: 6/27/12 Performed By: John Schnittker
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
Good
Differential
Good
Exhaust System
Good
Cooling System
Good
Brakes
Fair -Rear brake chambers
$400.00
Tires
Fair -4 Rear tires
$2,000.00
Steering
Good
Suspension
Good
HVAC
Good
Electrical
Good
Body /Frame
Fair -Rear body damage
$2,500.00
Interior
Fair - Passenger seat torn
$500.00
Other- Versalift Aerial
Fair - Aerial compensating link
$11,000.00
worn
Total Estimated Repair Cost
$16,400.00
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 A
Village of Mount Prospect
Vehicle /Equipment Evaluation Summary Report
Unit # 4523 Assigned Dept. /Div. Public Works/Forestry
Year: 1995 -in service 1994 Make: International Model: 4900 Mileage: 77,861
Date of Evaluation: 6/27/12 Performed By: Jim Breitzman
Ratings:
Unit age: 18 Base Policy Age: 15
Mileage/Hrs: 77,861/13,338 Base Policy Mileage /Hrs: 50,000/9,000
Maintenance Cost:
Repair and Maintenance Cost: $ 49,379 - Purchase Price: $ 91,000
Repair and Maintenance Percentage of Purchase Price: 54 %
Condition Evaluation: (attach Vehicle Condition Evaluation Form)
Estimated Repair Cost: $ 16,400 _ Current Book Value: $ 10,000
Repair Cost Percentage of Current Book Value: 164 %
Total Ownership Cost Per Mile:
(Lifetime Fuel + R &M + Purchase Price) $ 167,810
Less Salvage Value $ 10,000
Net Lifetime Costs $ 157,810
Divided by Mileage /Hours 78,000
Operating Cost Per Mile /Hour $ 2.02
Points: 3
Points: 4
Points: 4
Points: 4
otal Points: 15
Comments and other considerations:
This vehicle has operated 13,338 hours during its lifetime, which equals 400,140 engine miles.
Superintendent's recommendation:
This vehicle has well exceeded 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.
EXHIBIT B
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