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HomeMy WebLinkAboutB. REPLACEMENT COMPACTOR ENGINE City of Port Arthur, Texas Mayor and City Council Communication DATE REFERENCE SUBJECT: PAGE NUMBER Recommendation to approve payment to Bill Baker & Company, Inc, 11/15/2002 for a replacement engine for Compactor #1061 1 of 2 RECOMMENDATION: We recommend that the City Council approve the payment of $12,351.43 to Bill Baker & Company, Inc. of Houston, Texas for a replacement engine for compactor # 1061. The repair costs will be expensed to the Fiscal Year 2003 Public Works Department--Solid Waste Landfill Equipment Maintenance Account Number: 403- 1274-533.43-00. BACKGROUND: Equipment #1061 is a 1987 Rex 3-70A compactor used by Public Works--Solid Waste Division in daily landfill operations. This equipment cost $121,930 when purchased as a remanufactured compactor from Landfill & Construction Equipment, Inc. and was delivered on March 30, 1994. A replacement compactor, similarly equipped, would cost approximately $350,000 to purchase today. The equipment has incurred $411,644.35 in life-to-date maintenance expenses and has operated approximately 1,020 hours since the operator's cab, transmission and other drive components were replaced after a fire in 2001. This equipment is not scheduled for replacement in fiscal year 2003. An equipment operator initially noticed a reduction of power in the unit. A service teclmician from Equipment Services confirmed the loss of power and discovered a cracked engine head and significant coolant loss. The engine failure appears to have been caused by engine overheating of unknown origin. Quotes for a remanufactured Detroit 8V92N engine were received, from the following four (4) vendors: Bill Baker & Company, Inc. of Houston, Texas ...................................................... $11,029.43 Gillespie's Engine Service of Groves, Texas .................................... . ...................... $12,500.00 Landfill & Construction Equipment, Inc. of Herculaneum, Missouri ..................... $12,600.00 Scott Construction Equipment Co. of Lake Charles, Louisiana .............................. $16,895.95 All estimates included delivery charges. All vendors with the exception of Bill Baker & Company, Inc. provided for a six-month unlimited operating hours parts warranty. The estimate by Bill Baker & Company, Inc provided for a one (1) year/unlimited operating hour's parts and labor warranty. After engine disassembly by Bill Baker & Company, Inc. it was discovered that some additional repair parts were necessary (Oil pump: $972.00 and core charge on a cracked head: $350.00). These additional engine component parts increased the total cost of repairs by $1,322.00. The Equipment Services and Public Works staffs have reviewed this engine failure and concurred that the replacement engine estimate proposed by Bill Baker & Company, Inc. of Houston, Texas was the most cost effective for the City since other major component items have been recently replaced.. A memorandum dated November 7, 2002 (copy attached) was sent to the City Manager regarding the need for emergency repairs. PREPARED BY: TK DISPOSITION BY COUNCIL PROCESSED BY CITY SECRETARY APPROVED OTHER (DESCRIBE) ~PPROVED BY, ~ CITY MANAGER 3ATE City of Port Arthur, Texas Mayor and City Council Communication DATE REFERENCE SUBJECT: PAGE ~IUMBER Recommendation to approve payment to Bill Baker & Company, inc. 11/15/2002 for a replacement engine for Compactor #1061 2 of 2 BUDGETARY/FISCAL EFFECT: Funds £or vehicle maintenance were approved by City Council in the 2003 Fiscal Budget for various departments and division as object Code 43-00, Vehicle Maintenance. This repair cost will be expensed to the Fiscal Year 2003 Public Works Department--Solid Waste Landfill Equipment Maintenance Account Number: 403-1274-533.43-00, which has a budgeted amount o£ $300,000 and approximately $286,965 being unencumbered STAFFING/EMPLOYEE EFFECT: No anticipated effect on staffing is expected with this action. SUMMARY: We recommend that the City Council approve the payment of $12,351.43 to Bill Baker & Company, Inc. of Houston, Texas for a replacement engine for compactor # 1061. This repair cost will be expensed to the Fiscal Year 2003 Public Works Department--Solid Waste Landfill Equipment Maintenance Account Number: 403- 1274-533.43-00, which has a budgeted amount of $300,000 and approximately $286,965 being unencumbered. Tom Kestranek~ Leslie McMahen~ PE Director of Transportation Director of Public Works Director of Finance Purchasing Coordinator ~REPARED BY: TK DISPOSITION BY COUNCIL PROCESSED BY CITY SECRETARY APPROVED OTHER (DESCRIBE) ~,PPROVED BY ~ )ATE :ITY MANAGER Date: To: From: Subject: City of Port Arthur, Texas Memorandum November 7, 2002 Stephen Fitzgibbons, City Manager Leslie McMahen, Director of Public Works~ Tom Kestranek, Director of Transportation ~'"7~ Emergency Engine Replacement for Equipment #1061 We request authority to start emergency repairs to replace the engine in equipment #1061. This equipment is a 1987 Rex 3-70A compactor used by Public Works-Solid Waste Division in dally landfill operations. This equipment cost $121,930 when purchased as a remanufactured compactor from Landfill & Construction Equipment, Inc. and was delivered on March 30, 1994. A replacement compactor, similarly equipped, would cost approximately $350,000 to purchase today. The equipment has incurred $411,644.35 in 2re-to-date maintenance expenses and operated approximately 1,020 hours since the operator's cab, transmission and other drive components were replaced after a fire in 2001. This equipment is not scheduled for replacement in fiscal year 2003. An equipment operator initially noticed a reduction of power. A service technician from Equipment Services confirmed the loss of power and discovered a cracked engine head and significant coolant loss. The engine failure appears to have been caused by engine overheating of unknown origin. Quotes for a remanufactured Detroit 8V92N engine '~as received from the following four (4) vendors: Bill Baker & Company, Inc. of Houston, Texas ................................................. $11,029.43 Gitlespie's Engine Service of Groves, Texas ...................................................... $12,500.00 Landfill & Construction Equipment, Inc. of Herculaneum, Missouri ........... $12,600.00 Scott Construction Equipment Co. of Lake Charles, Louisiana ...................... $16,895.95 All estimates include delivery charges. All vendors with the exception of Bill Baker & Company, Inc. provide for a six-month unlimited operating hours parts warranty. However, Bill Baker & Company, Inc.'s estimate provides for an one (1) year/unlimited operaling hours parts/labor warranty. Additionally, other repair parts and outside labor charges associated with the remanufactured engine installation may be necessary to replace worn components that were not readily apparent during the initial inspection. The Equipment Services and Public Works staffs have reviewed this engine failure and concurred that the replacement engine estimate proposed by Bill Baker & Company, Inc. of Houston, Texas is the most cost effective for the City since other major component items have been recently replaced. We have requested that Bill Baker & Company, Inc. of Houston, Texas, order the remanufactured engine assembly immediately. Your concurrence with this course of action is respectfully requested. Page 2 of 2 Subject: Emergency Engine Replacement for Equipment #1061 Upon completion of repairs, a Council Communication will be prepared to document the repairs and to authorize approval for payment of expenses for this emergency power component assembly replacement. c: Rebecca UnderhiI1, CPA, Finance DirectOr Approved: ~ep~en B. Fitzgibbons City Manager / Ode