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Home My WebLink About(A) EQUIP SERVICES:TRUCK REPAIR City of Port Arthur, Texas Mayor and City Council Communication DATE REFERENCE SUBJECT: PAGE REVISED NUMBER Recommendation to approve payment to Energy Country Ford 1/15/2002 for a replacement engine for Service Truck #1207 I of 2 RECOMMENDATION: I recommended that the City Council approve the payment of $7,300.00 to Energy Country Ford of Port Arthur, Texas for a replacement diesel engine for Equipment Services Service Truck #1207. This equipment is a 1996 Ford F-350 1-ton service truck used by Equipment Services to repair City equipment in the field. The truck was purchased from Orange Ford Lincoln for $40,940.00 and delivered on June 5, 1996. A replacement truck similarly equipped would cost approximately $50,000.00 if purchased today. This truck has been driven 55,620 miles and has incurred $8,602.71 in life-to-date maintenance expenses. The repair costs will be expensed to the Fiscal Year 2002 Equipment Services Department Equipment Maintenance Account Number: 501-1281-531.43- 00. BACKGROUND: In late December 2001 the driver reported that thc engine was hard to start, difficult to keep running and would continuously miss fire. Equipment Services replaced the fuel filter, however this did not materially improve operation. Leonard Johnson diagnosised the problem as a hole in a piston. Equipment Services lacks the facilities and training to perform a compression test to corroborate the diagnoses and the truck was not sent to a facility that has this capability. It was decided that Equipment Services personnel would remove and disassemble the engine. However, after the engine was disassembled it was determined that the turbocharger and piston rings were severely worn. Thus causing the engine failure and allowing further damage to the extent that the entire engine will require replacement with a remanufactured diesel engine. Quotes to purchase a remanufactured diesel engine were received from the following three (3) local vendors: Philpott Ford of Nederland, Texas ................................................................ $7,295.00 Energy Country Ford of Port Arthur, Texas ................................................. $7,300.00 Howard's Auto Supply of Port Arthur, Texas .............................................. $9,000.00 All estimates included delivery charges and all vendors provided for a two (2) year unlimited mileage parts warranty. Equipment Services personnel have installed the replacement engine. My staff and I have reviewed this engine failure and agree that the engine replacement furnished by Energy Country Ford of Port Arthur, Texas is the most cost-effective for the City in accordance with City Council Resolution 99-216. A memorandnm dated January 3, 2002 (copy attached) was sent to the City Manager regarding the need for the emergency engine replacement. BUDGETARY/FISCAL EFFECT: This item was approved by City Council in the 2002 Fiscal Year Budget for various departments and divisions as object code 4300 vehicle maintenance. PREPARED BY: TK:rd ~ISPOSITION BY COUNCIL PROCESSED BY CITY SECRETARY APPROVED OTHER (DESCRIBE) APPROVE B BY CITY MANAGER DATE City of Port Arthur, Texas Mayor and City Council Communication DATE REFERENCE SUBJECT: PAGE REVISED NUMBER Recommendation to approve payment to Energy Country Ford 1/15/2002 for a replacement engine for Service Truck #1207 2 of 2 STAFFING/EMPLOYEE EFFECT: No anticipated effect on staffing is expected with this action. SUMMARY: I recommended that the City Council approve the payment of $7,300.00 to Energy Country Ford of Port Arthur, Texas for a replacement diesel engine for Equipment Services Service Truck #1207. The repair costs will be expensed to the Fiscal Year 2002 Equipment Services Department Equipment Maintenance Account Number: 501-1281-531.43-00. ~ 'T6m Kestranek ~ Rebecca Underhill, CPA Director of Transportation Director of Finance PREPARED BY: TK:rd DISPOSITION BY COUNCIL PROCESSED BY CITY SECRETARY APPROVED OTHER (DESCRIBE) APPROVED BY CITY MANAGER DATE Date: To: From: Subject: Memorandum 'lan - 7 2002 January 3, 2002 ~~clTr ~4HAGF..Jt OFFIcF.. Stephen B. Fitzgibbons, City Manager ~c2~~ Tom Kestranek, Director of Transportation Emergency Engine Replacement for Equipmeht #1207 I request authority to start emergency repairs to replace the engine in Equipment #1207. This equipment is a 1996 Ford F-350 1-ton service truck used by Equipment Services to repair City equipment in the field. The truck was purchased from Orange Ford Lincoln for $40.940.00 and delivered on June 5, 1996. A replacement truck similarly equipped would cost approximately $50,000.00 if purchased today. This truck has been driven 55,620 miles and has incurred $8,602.71 in life-to-date maintenance expenses. In late December 2001 the driver reported that the engine was hard to start, hard to keep running and would continuously miss fire. Equipment Services replaced the fuel filter. This did not materially improve operation. Leonard Johnson diagnosed the problem as a hole in a piston. Equipment Services doe not posses the facilities or training to perform a compression test to corroborate the diagnoses and the truck was not sent to a facility that has this capability. Leonard Jotmson then insta'ucted Equipment Services personnel to remove and disassemble the engine. However, after the engine was disassembled it was determined that the turbocharger and piston rings were severely worn. Thus causing the engine failure and allowing further damage to the extent that the entire engine will require replacement with a remanufactured engine. Quotes to purchase a remanufactured engine were received from the following three (3) local vendors: Philpott Ford of Nederland, Texas ........................................................... $7,295.00 Energy Country Ford of Port Arthur, Texas ........................................... $7,300.00 Howard's Auto Supply of Port Arthur, Texas ....................................... $9,000.00 All estimates include delivery charge. Ali vendors provide for a two (2) year unlimited mileage parts warranty. In the event, it is determined that the engine is damaged to the extent that it is not useable in the remanufacturing process, a $3,200.00 core charge will be added to the cost. Equipment Services personnel will install the replacement engine. Additionally, other repair parts and labor associated with the remanufactured engine installation may be necessary to replace worn components that were not readily apparent during the initial inspection. Equipment Services staff has reviewed this engine failure and concur that the replacement engine purchase proposed by Energy Country Ford is the most cost effective for the City, in accordance with Resolution 99-216, since this vehicle will not be replaced for sometime. We have requested that Energy Country Ford order the rem,'mufactured engine assembly immediately. Your concurrence with this course of action is respectfully requested. Pa. ge Upon completion of repairs, a Council Communication will be prepared to document the repah's and authorize approval for payment of expenses for this power component assembly. c: Rebecca UnderhilI, CPA, Finance Director Approved: '--St~'phe~ B. Fi~zgibbons City Manager / / Date P. R. No. 10718 9/14/99 - ch 'soL Tio A RESOLUTION ADOPTING TI-~ PURCHASING PROCEDURES OF HOUSE BILL 2787 AS TO GIVE LOCAL BiDDERS A PREFERENCE WHEN THEY ARE WITHIN 3% OF THE LOWEST BID PRICE. WI-E[SREAS, House Bill 2787 allows au eligible City lo award a contract to a local bidder if the bid is within 3% of the lowest bid price; aud WI-IgREAS, the City Council deems it iu the public interest to bare this option in all of its purcllasiug transactions. NOW, TI-1EREFORE, BE IT RESOLVED BY TIlE CITY COUNCIL OF TH~ CITY OF PORT ARTHUR TEXAS: Section 1. The facts and opinions ia the preamble are true and correct. Section 2. Tim City's PurchasingManager shall uoti£y bidders that the City will either award the contract to: 1) the lowest responsible bidder, or 2) the bidder whose principal place of business is ill the City of Poll: Arthur if the City detennhles, iu writing, that tile local bidder offers the City of Port Arthur the best comb/natiou oF coatract price aad additional economic development opt~ortunities for the City created by the contract award, including the employment of Port Arthur residents and increased tax revenues to the local government, or 3) reject the bids. Section 4. That a copy of this Resolutiou be spread upot~ the minutes of the City Council. 50bidding.res READ ADOPTED, AND APPROVED on this thc ,_. __~ of 1999, at a Meeting office City Council of'file City of'Port Arthur, Texas, ~, ; Councihnembers by the following vote: AYES: Mayor MAYOR APPROVED ,~S TO FORM: CITY ATTORNEY APPROVED FOR ADMINISTRATION: MAN-A 50bidding.res