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HomeMy WebLinkAbout02/18/2014 Purchase of One (1) New Articulating & Oscillating TractorMount Prospect Public Works Department INTEROFFICE MEMORANDUM TO: VILLAGE MANAGER MICHAEL E. JANONIS FROM: VEHICLE /EQUIPMENT MAINTENANCE SUPERINTENDENT DATE: FEBRUARY 7, 2014 SUBJECT: PURCHASE OF ONE (1) NEW ARTICULATING AND OSCILLATING TRACTOR ($116,017) Background In the current budget, there are funds available to replace sidewalk utility tractor 4508. 4508 is a 1999 Trackless MT5 used by Public Works staff to remove snow in our downtown business district and on sidewalks along Northwest Highway, Central Road, Route 83, and at various other locations throughout the Village. We have operated two (2) of these articulating and oscillating "Trackless" brand tractors over the last 15 -20 years to accomplish the needed snow removal in a timely and effective manner. These tractors have served the Village well based on reliability, performance and overall versatility. All of the current attachments (snowblower, broom, and plow) can be utilized on the new proposed tractor and can be changed out quickly. This versatility is critical to public works operations; it will allow us to share attachments with an existing Trackless tractor and limit the variety of stocked parts. Most importantly, it will enable operators to maneuver the tractor in confined downtown spaces with little or no retraining. Purchasing a comparable tractor from a different manufacturer would require us to purchase additional commonly stocked parts. The Materials Management Division of the State of Minnesota has prepared bid specifications for municipal utility tractors and sent them to several vendors that provide these types of tractors. Each vendor submitted a competitive bid price for the specific manufacturer /model they sell. The State of Minnesota has made this contract available to its state agencies and to members of its state's Cooperative Purchasing Venture (CPV) program at the same prices, terms, and conditions. I have reviewed the specifications and field- demonstrated another manufacturer's model to insure the new Trackless machine will continue to be the most cost effective choice available for our needs. 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 should be recommended for replacement. This vehicle scored a total of twelve (12) points indicating a high rating, which is recommended 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. February 7, 2014 Purchase of one (1) New Articulating and Oscillating Tractor ($116,017) Page 2 of 2 Other Factors • The articulating pivot assemblies are due for a major rebuild. The work is estimated to cost approximately $4,000, including parts and labor. • The hydraulic steel lines and hoses are fatigued from age /corrosion and are due for complete replacement. This work is estimated to cost between $3,500 and $4,500. • The high / low transmission is showing signs of wear and will need rebuilding soon. The cost is estimated to range between $4,500 and $5,500, including parts and labor. • The hydrostatic pump is due for a major overhaul. The cost is estimated to range between $5,000 and $6,000, including parts and labor. Discussion Our local Trackless dealer, EJ Equipment, has offered the same pricing used on the State of Minnesota's contract to us. EJ Equipment is the only Trackless dealer in Illinois, leading me to believe the Village would not receive a better price from an out of state dealer by competitively bidding this unique tractor on our own. In the past our Village Attorney has reviewed the Minnesota contract details and states the Village Code permits the Village Board to waive competitive bids in such a manner as it may approve, including its reliance on Minnesota's state bid contract price, as it would be in the best interests of the Village. Therefore, it appears that the most cost - effective procurement method for this tractor is to waive the competitive bidding process and accept their proposal based on the State of Minnesota's contract (contract number 57282) pricing as released on January 1, 2013. Purchase Recommendation I am recommending waiving competitive bids for the purchase of one (1) new 2014 Trackless MT6 Municipal Utility Tractor and accept the proposal submitted by EJ Equipment, Inc., of Manteno, Illinois in an amount not to exceed $116,017.00. There are sufficient funds available for this proposed purchase within the current Public Works Vehicle Replacement budget. We received an optional trade in price of $11,000 . However, we anticipate a higher sales price disposing the old tractor through GovDeals Internet auction. ) R. Breitzman Vehicle /Equipment Superintendent I concur. Sean P. Dorsey Director of Public Works JB Attachment cc: Deputy Director of Public Works Jason Leib H:\Administration \BIDS \RESULTS \Trackless Purchase4508MinnBidWVR2- 2014.doc EXHIBIT A Village of Mount Prospect Vehicle/Equipment Condition Evaluation Form Unit # 4508Assigned Dept. /Div.Public Works-Street Year: 1999Make: TracklessModel: MT5Mileage: N/A Hours: 2,450Date of Evaluation: 1/28/14Performed By: Jim Breitzman SystemDiagnosisEstimated Repair Cost EngineGood TransmissionFair-Due for rebuild$5,000.00 DifferentialFair-Spider gears$2,000.00 Exhaust SystemFair-Muffler$400.00 Cooling SystemFair-Water pump$500.00 BrakesGood TiresFair$1,000.00 SteeringFair-Pivot assemblies$4,000.00 AttachmentsFair$2,200.00 HVACGood ElectricalFair-Aged wires$1,000.00 Body/FrameFair-Body damage & floor rot$2,000.00 InteriorFair-Seat Worn$600.00 Other-Hydraulic SystemPoor-Lines and pump$9,500.00 Total Estimated Repair Cost$28,200.00 Diagnosis CodeCode Description GoodSystems are functioning well and no major repairs are expected. FairSome major repairs are needed, but unit can remain in service a little longer in current condition. PoorMajor 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 # 4508Assigned Dept. /Div.Public Works-Street Year: 1999Make: TracklessModel: MT5Mileage: N/A Date of Evaluation: 1/28/14Performed By: Jim Breitzman Ratings: Unit age:2 15BasePolicy Age: 15Points: Mileage/Hrs:2 N/A / 2,450Base Policy Mileage/Hrs: N/A/2,500Points: Maintenance Cost: ÷ Repair and Maintenance Cost: $54,030.00Purchase Price: $67,800.00 4 Repair and Maintenance Percentage of Purchase Price: 80%Points: Condition Evaluation: (attach Vehicle Condition Evaluation Form) ÷ Estimated Repair Cost: $ 28,200.00Current Book Value: $ 15,000 4 Repair Cost Percentage of Current Book Value: 188%Points: Total Ownership Cost Per Mile: ++ TotalPoints:12 (Lifetime Fuel R&MPurchase Price) $ 133,800 Less Salvage Value $15,000 Net Lifetime Costs $ 118,800 Divided by Mileage/Hours2,450hrs Operating Cost Per Mile/Hour$48.49 Comments and other considerations: This machine will require several major repairs in the near future to maintain reliable and safe operation. Superintendent’s recommendation: This machine has metits life expectancy and severalmajor 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. Cost