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HomeMy WebLinkAboutResolution No. 2012-16the a( KENAI, ALASKA Suggested by: Administration CITY OF KENAI RESOLUTION NO. 2012 -16 A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AUTHORIZING THE PURCHASE OF A MOTORORADER FROM NC MACHINERY FOR THE TOTAL AMOUNT OF $339,740. WHEREAS, the City's existing 1.988 motorgrader requires continuous repairs and has reached the end of its useful life; and, WHEREAS, KMC 7.15.050(1) provides for the purchase of supplies, materials, equipment or contractual service under the contract of another governmental agency in which the City is authorized to participate; and, WHEREAS, the City of Kenai has utilized the Alaska Department of Transportation & Public Facilities' (ADOT /PF) fleet purchasing contracts on many occasions; and, WHEREAS, ADOT /PF has undertaken a life -cycle analysis in determining the lowest cost over the life of the equipment; and, WHEREAS, the ADOT /PF fleet purchasing contract expires in April of 2012, and the expectation is that the re- bid /re- negotiation will result in significantly increased pricing; and; WHEREAS, the purchase of a motorgrader from NC Machinery under the ADOT /PF fleet contract is in the best interest of the City. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, authorizes the purchase of a motorgrader from NC Machinery for the total amount of 5339,740. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 7th day of March, 2012. EST: Sar1:r ,' odligh, Cify Clerk b Approved by Finance: PAT PORTER, MAYOR KENAI, ALASKA "Village with a Past, Cc ty with a Future" 210 Fidalgo Avenue, Kenai, Alaska 99611 -7794 Telephone: 907 - 283 -7535 / FAX: 907 - 283 -3014 11111' MEMO: TO: City Council FROM: Rick Koch DATE: March 1, 2012 SUBJECT: Resolution 2012 -16, Purchase of a New Caterpillar 140M Motorgrader from NC Machinery The purpose of this correspondence is to recommend that the City Council approve Resolution 2012 -16 authorizing the purchase of a Caterpillar 140M motorgrader from NC Machinery. The equipment replacement schedule provides for the replacement of a 1988 120G motorgrader in FY2013 at an estimated cost of $303,598. The actual cost for a Caterpillar 140M with all wheel drive is $339,740.00 1992 The State of Alaska Department of Transportation and Public Facilities, through a competitive process designed to determine the overall lowest cost through the life of the equipment, has in -place a contract with NC Machinery for the purchase of motorgraders. This term contract will expire in April 2012. The expectation is that the re- bid /re- negotiated term contract will include substantial price increases. The 1988 120G motorgrader currently owned by the City has reached the end of its useful life. The need for repairs is commonplace. If the City were to continue using this equipment, major reconditioning of all major operating systems would be required possibly costing up to $100,000, possibly extending its useful life by 10 years. The equipment proposed for purchase will reduce operational expenses and provide a useful life of 25 years or more. Attached is information provided by the City shop detailing the equipment, and the process by which the equipment was selected. Thank you for your attention in this matter, if you have any questions please contact me at your convenience. LOT 1 CONTRACT CA 1500 -10 MOTOR GRADERS NC Machinery 6450 Arctic Blvd. Anchorage, AK 99519 Replacing V- Contract Start Date 4/19/10 Contract Expiration Date 4/18/2011 (Extension expire 4/18/2013 if utilized) Qty. Description Make /Model 0 Motor Grader, minimum 35,000 pound CAT 140M $ 0 Warranty, Year Two (2) $ 0 Warranty, Year Three (3) $ 0 Supplemental Emergency Power Steering $ 0 Tire Studs $ 0 Push Block CAT $ 0 Scarifier CAT $ 0 Snow Wing, 12 Foot Henke $ 0 Snow Plow (Multi - Directional) Kenke $ 0 Auto Lube System Beka Max $ 1 Training in Anchorage $ 0 Training in Fairbanks $ 0 Training in Juneau $ 1 Diagnostic tools, Year One (1) $ 0 Diagnostic tools, Year Two (2) $ 0 Diagnostic tools, Year Three (3) $ 1 Oil Sampling, Year One (1) - REQUIRED $ 1 Oil Sampling, Year Two (2) - REQUIRED $ 1 Oil Sampling, Year Three (3) - REQUIRED $ 1 Publications — Per Set $ 0 Final Inspections — Per Person $ Additional Options 1 Snow Wing, 12 Foot, Not on Contract, Optional CAT 0 Snow Wing, 14 Foot, Not on Contract, Optional CAT 1 Reinke Snow Gate, Not On Contract, Optional Heinke 1 Heinke- Nose -Plow Attachment Heinke 0 INSTALLATION, ACCUGRADE READY Allows the Motor Grader to be equipped with either a Cross Slope, Sonic, Laser, GPS, or ATS electronics kit. Provides cab switches, software, harnesses for sensors, mounting for sensors and blade mast bracket. 0 CAMERA, REAR VISION Provides a 115 degree color camera mounted on the rear of the hood that is connected to a 7 inch (178mm) LCD color display mounted in the cab which shows the view behind the machine 0 AWD Option Price PO TOTAL 260,019.00 $ 260,019.00' 2,040.00 $ 2,040.00' 90.00 972.00 3,318.00 11,368 00 16,289.00 26,512.00 12,222.00 1,000.00 1,500.00 $ 1,500.00 1,900.00 1,900.00 1,900.00 384.00 384.00 384.00 825.00 1,000 00 1.000,00 $ 19,500.00 $ 21,500.00 $8,100 $11,300 $ 6,360.00 2,380 00 $ 33,814.00 00 0 384.00 825.00 100 00 300.00` PO TOTAL $ 339,740.00'' Proposed Street Department Grader It is the recommendation of the Shop Department to purchase a Cat 140M AWD grader off of the State Procurement Sight Contract #CA1500 -10. I have factored in many items to come to this recommendation. I do understand the Cat 140M AWD grader has a higher initial cost but over the useful life will result in a significant saving to the City of Kenai. 1. Parts currently in stock 2. Parts interchangeability between the City's current fleet of Cat graders and proposed grader. 3. Moldboard height increasing productivity by 10% 4. Throat(curve) of moldboard designed to roll the snow allowing increased fuel economy 5. The ability to adjust for wear in cylinders v/s replacing complete cylinders 6. Adjustable clutch to protect expensive repairs to Circle gears 7. Past experience with both NC Machinery and C.M.I. 8. Recommendation from City of Anchorage for Cat over the Volvo 9. Preference of State of Alaska equipment fleet manager 10. Resale value 11. Reduced cost in replacement parts over Volvo grader 12. Current mechanical experience with Cat graders 13. Parts stocked at Dealership Shop Foreman Ra y Parrish The following is from phone conversation between myself, Randy Parrish and persons listed below. City of Anchorage Shop Foreman Day Shift: Kevin 907 - 343 -4838 The Cat Graders are by far more defendable year after year and with a lower operation cost. The Cat 140M grader with AWD has been great, no down time and no complaints. This winter every Volvo Grader has been in the shop multiple times, all are having the CIRCLE TURN PINION replaced at a cost of $1100 in parts 4 sets each so far for a cost of $4400 per machine, and we still have a few more months to go. Caterpillar utilizes a slip clutch to prevent damage. The City of Anchorage has 6 Volvo motors with problems resulting in replacing all 6 engines and most of those have gone back due to additional engine problems, examples (Anti- freeze in engine oil, blown head gaskets, oil in anti - freeze). We have had long down times waiting on Volvo repair parts; most parts are not in stock and have to be ordered and flown in. CMI has a very limited parts inventory compared to the Caterpillar dealer. City of Anchorage is fortunate in having 2 fabricators that can make or repair some of the broken parts that are not stocked or parts having a long delivery time for the Volvo. City of Anchorage Volvo Grader's continues to have transmission failures and high noise level in operator station from transmission. On the Volvo Graders we continue to have "DEBRIS" floating around in the load sensing valve system, which control the hydraulic systems on the Volvo graders causing lack of steering and hydraulic functions. No real problems with the Cat graders just normal adjusting for wear and routine service. Union County Oregon Shop Foreman: Tie Halguard 541- 963 -1016 Union County has been having similar problems with the Volvo Graders. The State of Alaska Southwest and Kenai Peninsula District Equipment Manager: Dee Linton 907 - 269 -5971 State of Alaska has been having problems with the circle turn pinion and transmission issues with the Volvo Graders. Below are the following experiences of the Shop's interaction with NC Machinery and CMI dealerships. The City of Kenai has purchased equipment from both the Volvo dealer (Construction Machinery Incorporated) and Cat dealer (N.C. Machinery). N.C. Machinery The most recent purchase was the Cat 14M grader for the Airport. The 14M grader has been trouble free and service has been excellent in every aspect. NC Machinery has gone above and beyond what is required from them. Example, the training that the Shop received to work on the grader was not in- depth to the extent we felt like we needed to perform the maintenance that would be needed in the future. I, Randy Parrish, called Mike Lichter at NC Machinery and expressed our request to receive additional training. NC Machinery has set up an additional day of training in April with their Service Technician, Steve Rude, to go over all the troubleshooting procedures and computer diagnostic equipment received with the grader. It is a great asset to have a company that will follow through and go above what is required. Every time the City of Kenai's Maintenance Shop has called needing assistance NC has always had someone available to answer our question or returned our call in a short time. All of the City's graders currently in use are Cat graders and the parts currently stocked are Cat parts allowing a lower maintenance cost due to part interchangeability. NC Machinery stocks over 80% of all parts that are ordered. NC Machinery has a Service Technician, Steve Rude, that is stationed in the Kenai area most of the year. NC Machinery performs regular updates to the equipment without charge. C.M.I. (Construction Machinery Incorporated) Volvo grader does not meet State of Alaska contract CA1500 -10 for a 35,000 class grader. Examples but not limited to: 7.1.3 Any ball joints and split bearings shall be provided with adequate means of taking up wear. Volvo no adjustments. 8.0 BLADE ASSEMBLY: 8.1 Moldboard: 8.1.1 Length: 14 feet. Blade extension(s) are not acceptable. 8.1.2 Minimum of 24 inches in height and minimum of 7/8 (0.875) inch thick. Height measurement is to be taken on outside of moldboard curvature (dimension does not include cutting edge). Volvo's moldboard is 2 inches shorter which results in a 10% decrease in work load. 9.4 Circle drive system to have a relief mechanism to guard against damage caused by sudden impacts or shock loading at high speeds. Volvo's relief system does not allow for sudden impact during snow removal. The most recent purchase from CMI was the Volvo L120E loader purchased 8/2010. During the purchase process to be included with the sale was on site training for the operator and mechanics. I have made several calls over the past 18 months relating to the training, as to this day training has not been scheduled. Most recent call was in January of this year with CMI's salesman during the conversation to discuss the purchase of a new Grader for the City of Kenai. C.M.I. has been very slow in producing a bid for a grader. Ordering parts is time consuming and expect parts out of stock or to be flown in and then reshipped to Kenai adding days before the unit can be placed back into service. Service Manual for the Volvo L120E is not complete in all areas. Shop Foreman Randy Parrish $210.000 3170.000 5100.000 u 0. 0 V 7 150000 570,000 550.000 00^.000 sale 1/12l u FROM __ ii1 a CA (Ant l,? ,qdec -0-m - -- CAT Avg (w /o HIgh/Low) — JD Avg (w /o High /Low) i>x Volvo Avg (w /o Hlgh/Low) Expon. (CAT Avg (w /o High /Low)) w^^^ Expon. (JD Avg (w/o High /Low)) t` ,,.+�`' ® 14 w.vm- Expon_ (Volvo Avg (w /o Hlgh/Low)) 2001 2002 2003 2004 2005 Model Year 2006 2007 2008 AU de Value Estimator ,hirer yTrader.com 43/140:. D 772 0.132 Volvo 726/946 0.1911 99522 58130 32254 o 12 m 0 10 c O OCAT Data Points ®JD Data Points ®Volvo Data Points 2001 2002 2003 2004 2005 Model Year 2006 2007 2008 Source: MachiceryTradeocom PUTS PR[ iNr� OEM Price Comparison Results - - -- - 8/52008 - Issue 2 - - -- CAT Model 14021 CompetitorlModel, VOLVO G940 Customer Industry: Marketing Org NACD Sales Area. NACD Currency. USD" xtended CAT r Competitive P: CAT Part Description CAT Part 0 CAT Qty Rod Assembly 213 -3193 (Raman Option) (0R2741) Piston Pin 197 -9371 Piston Ring - Top 19] 9386 Piston Ring - inte.anedate ', 19] 9353 Piston Ring - Oil 238-2706 !. Regulator - Water i,,. 115 4223 Main Bearing 107-7708 Alternator - 150A 249-0313 Gasket - Head 133-4995 1 Blade As - Wiper(Fr) 6V5853 !. *Hirer Gp- Rear View 5P6874 L. Back Up Alarm 213-9100 Lamp Gp - Food 219-6486 Seat Belt Gp ,. 222-0345 Cap As - Filler 7X7700 Edge - Cutting (63 943657 1 Ripper Tip - Peeetraton i, 61/0309 Filter As - Engine 00 1R1807 '.. Filter As -Fuel 1R0762 V Belt (Serpentine) 293-3908 1 CAT SCP' SCP' Competitor Part Description # 258 03 (99 31) 2261 135.66 2105 12630- 2105 12630 i.. 2105 12630- 1280 1280... 2136 12818 92163 92163 4736 4] 36 1669.... 1669.... 52.35 52 35 10939 10939 3839 3839... 133.85 133.85 61 36 61 36 9] 53 9753 5/43 5743._ -. 1297 1297 24 20 24 20 7081 7081._. 1548.18 CAT Total $3,847.66 Connecting Rod VOE 20584675 Piston Pin VOE 20405577 Ring Kit VOE 20450775 Thermostat VOE 20450736 C nnkshae Bea^ ^g VOE 20405516 '.. ltereatm (1103) VOE 20849352 Head Casket VOE 20943389 Wiper Blade Assembly VOE 12741498 Mirror- OR Rear View VOE 11121153 1 Back Up Harm VOE 11039563 1 Work Light Assembly VOE 11039846 1 Seat Belt i.. VOE 12743634 Fuel Gas !. VOE1189577 Cutting Edge CH 75441 (7') 1 Tooth Tp CH 8111 1 GI Filter Cartridge VOE 3831236 1 Fuel Flier Carrdge ii VOE 20805349 V Belt VOE 970722 1 Competitive Competitive List 6 611 78 3051 6901 nded Competitive list 3670.68 18306 414.06 5534. 55 188.51 1182.74 1182 74 164 26 164 26 24 70 70. 13 78 21/ 64 217 -64 63 85 85. 47239 47239. 64.53 64.53 24653 24653 1706 1706 1865 1865 32 34 32.34 30 33 30.33 Competitive Total 57,120-45 'SCP Suggested Consumer Pnce i, i. Jena 185']0 Any rnedific Sons to the OEM Price comparison (published by Caterpillar Inc.) are the responsibility of the individual who modifies /revises the part numbers and /or published suggested list prices. Prices subject to change without notice. OEM Price Comparisons between Caterpillar and other competitive OEMs (OEM Price Comparisons) are considered by Caterpillar to be confidential in 'i. nature, the requester (e.g- a Caterpillar dealer) shall (1) keep OEM Pnce Comparsons in confidence, using the same degree of care as it uses to protect its i.,. own confidential information of fife nature, but not less than a reasonable degree of care; and (2) not disclose any of such OEM Pnce Comparisons to any person other than its employees who have a need to know. i Neither Caterpillar nor Its representatives have made or snake any representation or warranty regarding the accuracy or completeness of the OEM Pnce Comparisons, and expressly disclaim any and all liability for express or implied representations or warranties contained in, or for omissions from, the OEM Comparisons or any other written or oral communications made available to the requesior.