HomeMy WebLinkAboutAGENDA REPORT 1997 0618 CC SPC ITEM 03AAGENDA REPORT
CITY OF MOORPARK
TO: Honorable City Council
FROM: Kenneth C. Gilbert, Public Works Director
DATE: June 12, 1997 (CC Meeting of June 18, 1997)
71q. 3 (is)
ITEM.!.
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SUBJECT: Consider Procurement of a Skiploader with Scraper and Adoption of a
Resolution Increasing the Budget Amount for Said Equipment
EXECUTIVE SUMMARY
This presents the bid results for the procurement of the subject equipment and requests the
City Council approve an increase tot he FY 1997/98 Budget to allow the purchase of same.
DISCDSSIQN
Over the past several years the Public Works Department and the Parks Department has
rented skiploaders to perform a variety of tasks. The work done by in -house forces
which has required the rental of such equipment includes: desilting debris basins;
desilting parks, shoulder grading; v -ditch construction; roadside drainage repairs,
loading and unloading base material; removal of heavy debris; and clearing roads from
mudslides.
An analysis of equipment rental records for Fiscal Years 1994 -95 and 1995 -96, indicates
that the City has expended an average of approximately $17,000 per year on rental costs
for a skiploader. With rental costs this high, it would be much more cost effective to
purchase a Skiploader. Normally a piece of heavy equipment like this is amortized over
a ten year period. Assuming a purchase price of $50,000, the annual amortized cost for
this item would be only $5,000 -- an amount far less than our recent experience of
equipment rental charges.
In addition it should be noted that the City ownership of a skiploader would greatly
improve the City's emergency response capability. Although contract clean-up and
repairs very well may be required for any major problem, the immediate availability a
skip loader for many types of less severe problems would be very useful.
Skip Loader
June 18, 1997
Page 2
B. Bid Results / Analysis
1. Bid Format: The bid package allows bidders to submit bids for a either or both of
the following two items:
a) a new 1996 -97 four wheel drive skiploader with scraper; or,
b) a used (maximum 300 manhours) 1995 -96 four wheel drive skiploader
with scraper.
In order to allow for some flexibility in the bidding and selection process, bidders
were permitted to submit a lease option plan. The bidding instructions stipulated
that the City may reject any bid, may make its selection based on the perceived
needs of the City (not merely price), and may select both or only one of the items
bid.
2. Bid Distribution: Bidding documents were mailed to fifteen (15) selected
equipment sales companies. Bids from five firms were received.
3. New 19916 -97 four wheel drive skiploader with scraper: A summary of the bid
results for the new 1996 -97 four wheel drive skiploader with scraper is listed as
follows:
Bid Amount ($)
Bidder Make [including tax]
A. Valley Ford Tractor, Fillmore '97 Ford 39,824.07
545 D
B. Staben Equipment, Oxnard '97 Ford 42,059.16
545 D
C. Contractors Equip, Oxnard '97 Case 45,002.10
570 LXT
D. Coastline Equip, Oxnard '97 Deere 47,318.70
210 LE
Skip Loader
June 18, 1997
Page 3
4. Used (maximum 300 manhours) 1995 -96 four wheel drive skiploader with
scraper: A summary of the bid results for the used (maximum 300 manhours)
1995 -96 four wheel drive skiploader with scraper is listed as follows:
rl,
A. Prime Equipment, Moorpark
Bid Amount ($)
Make (including taxl
'95 Ford 33,783.75
445 D (31500} Mpk Tx
795 hrs ** 33,473.75
B. Prime Equipment, Moorpark '95 Ford 42,059.16
545 D (44120) Mpk Tx
269 hrs 41,617.96
** Does not meet maximum 300 hr. requirements.
5. Bid Comparison: A summary comparison of all of the bids except Bid 4A is
attached as Exhibit 1. Bid 4A did not meet the minimum requirement that the
operating time of the used piece of equipment not exceed 300 hours.
6. Evaluation Criteria: Some of the factors used to evaluate the bids are as follows:
a. Price: The goal is to pay the lowest price possible for a piece of equipment
which adequately meets the City's needs.
b. Conl ance with Stated Specifications: The bid documents stated a number of
specifications preferred by the City. The degree to which those specifications
were met is noted on Exhibit 1.
c. New vs. Used: A used piece of equipment would be recommended if the cost
of the lost benefits normally attendant to a new piece are offset by the cost
savings. Factors to consider include 1) warranty time, 2) spec compliance
and 3) condition. The costs would could result from problems associated with
a used piece of equipment are to be avoided. The costs savings should be
significant enough to accommodate these potential future costs.
d. Why: A new piece of equipment usually has a one or two year warranty.
This is usually not the case with used equipment.
e. Hours of Use: In selecting a used piece of equipments, it is preferable to
select the lowest possible number of hours of operating time.
Skip Loader
June 18, 1997
Page 4
6. Recommended Selection:
a. It is recommended that Bid 3A be selected: Valley Equipment for a Ford
545D for the total purchase price (including tax) of$39,824.07.
b. As stated in Section A of this report, annual rental costs for this piece of
equipment has averaged $17,000 per year. Using this cost history, the
purchase price for the recommended piece of equipment would be amortized
in 2.3 years.
C. Fiscal Impact
1. Current Budget: The Fiscal Year 1996/97 budget includes $32,500 from the Gas
Tax fund for the acquisition of the subject skiploader/ scraper.
2. Cost of Recommended Purchase: The cost of the recommended purchase is
$39,824.07.
3. Budget Amendment: It is recommended that the attached Resolution (Exhibit 2)
be adopted increasing the amount of the appropriation and budget for this purchase.
The additional funds required are recommend to be appropriated from the Gas Tax
Fund.
D. D liv
Valley Ford Tractor has stated that the City will be able to take delivery of this item
within 60 days.
RECOMMENDATION (Roll Call Vote)
Staff recommends that the City Council take the following actions:
1. Authorize staff to purchase a Skip Loader / Scraper from Valley Ford Tractor for
$39,824.07 (tax included).
3. Adopt Resolution No. 97- increasing the funding [from the Gas Tax Fund] for the
subject item from $32,500 to $39,830 [$7,330 increase].
Bid Comparison
Bids
Description 3A 3B 3C 3D 4B
Vendor Valley Staben Contractors Coastline Prime
Equipment
Make /Model 197 Ford 197 Ford 197 Case 197 John Deere 195 Ford
545 D 545 D 570 LXT 210 LE 445 D
Used
Price 39,824.07 42,059.16 45,002.10 47,318.70 41,617.96
New / Used New New New New Used
Hours of None None None None 269
operation
Rating [1 -41] 37.9 39.0 41.0 39.6 32.49
Meets Specs
Warrantee One Year One Year One Year 1 - 2 Yrs 30 Days
Parts & Parts & Parts & Parts &
Labor Labor Labor Labor
Lease Option Offered Yes No No Yes Yes
$871.75 J so $300 dwn $1,927 x 24 =
48 mos. 1,028.89 / so. $46,248
$41,844.00 tot 48 Mos. or
$49,686.72 tot $1,339 x 36 =
$48,204