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HomeMy Public PortalAbout4b TB Briefing Heavy Equipment Purchase Town of Fraser PO Box 370, Fraser, CO 80442 office 970-726-5491 fax 970-726-5518 www.frasercolorado.com MEMO TO: Mayor Vandernail and the Board of Trustees FROM: Allen Nordin, Public Works Director, CWP DATE: May 17, 2017 SUBJECT: Staff Report PW: Heavy Equipment and Attachment Purchase MATTER BEFORE BOARD: Purchase of a new wheel loader (front-end loader) and a snow box attachment. ACTION REQUESTED: Approval of budgeted expenditures from the Capital Equipment Replacement Fund (CERF) of the 2017 General Fund in the amount of not-to-exceed (NTE) $220,000 for the purchase of a new wheel loader and snow box attachment. BACKGROUND: The Public Works Department is responsible for maintaining the public streets in a safe condition for vehicular travel by keeping them reasonably clear of snow and ice and the placement of traction sand. With our current fleet of aging mission critical snow & ice (S&I) equipment comes the need for extensive and costly repairs and eventually replacement of equipment and attachments prior to the end of their useful life. In this instance, our 1996 wheel loader is in need of costly repairs that exceeds over 50% of a trade-in amount. Staff has been diligent with maintaining this equipment, unfortunately it no longer makes sense to throw good money into a 21-year old loader. It is time to replace this unit. Additionally, the same logic applies to our S&I attachments i.e. plow blades and snow boxes. We strive to maintain them in working condition however the useful lives of the attachments can tend to be less than that of motorized equipment. With the continuing loss of snow storage areas throughout town, staff finds the need to manage or push snow from the roadways longer distances to storage areas. Adding this additional snow box to our fleet will provide staff with the necessary tools to complete their tasks efficiently. During this quest for a new wheel loader staff took a different approach from how we have solicited bids for equipment in the past by reaching out to multiple vendors (make/model) including Komatsu (our current fleet), John Deere, Volvo, Case and Caterpillar. All but one responded with bids. In the past, the feeling that staying with same name brand equipment Town of Fraser PO Box 370, Fraser, CO 80442 office 970-726-5491 fax 970-726-5518 www.frasercolorado.com offered some benefits related to parts inventory, however, as makes and models evolve over time we no longer feel the need to be one-brand loyal. We are continuing our final negotiations with the dealers for the wheel loader and the snow box attachment and therefore do not have final prices negotiated and is the reason the resolution has a Not-to-Exceed amount rather than a fixed cost for the equipment. The time is here to replace this wheel loader as it no longer makes financial sense to put additional money into repairs as it has reached the end of its useful life. PW continues to maintain an aging fleet of work vehicles and heavy equipment and has been very diligent with requests for equipment purchases over the years. There are no apparent ‘simple’ alternatives or solutions for replacing worn out equipment and attachments. Purchase of the new wheel loader and snow box attachment will provide staff with safe and reliable ‘mission critical’ snow & ice equipment to allow them to perform their duties in a professional, efficient and effective manner. ALTERNATIVES: 1. Approve the purchase of a new wheel loader and snow box attachment. 2. Continue to expend time and resources repairing 21-year old equipment. RECOMMENDATION: Motion to approve Resolution 2017-05-03 authorizing the expenditure of NTE $220,000 for the purchase of a new wheel loader and snow box attachment.