The URL can be used to link to this page

Home My WebLink About(2) PUBLIC WORKS: D-7H DOZER City of Port Arthur, Texas Mayor and City Council Communication DATE REFEI~ENCE SUBJECT: PAGE NUMBER Recommendation to approve payment to Mustang Tractor 1/29/2002 for repairs to equipment #1107 1 of 2 RECOMMENDATION: We recommended that the City Council approve the payment of $53,358.25 to Mustang Tractor & Equipment of Beaumont, Texas for final drives and track repairs to dozer #1107. The repair costs will be expensed to the Fiscal Year 2002 Public Works Department--Solid Waste Landfill Equipment Maintenance Account Number: 403-1274-533.43-00. BACKGROUND: Equipment #I 107 is a 1994 Caterpillar D-7H dozer used by Public Works--Solid Waste Division in daily landfill operations. This equipment cost $195,474.00 when purchased new from Mustang Tractor & Equipment, Inc. and was delivered on November 28, 1994. A replacement dozer, similarly equipped, would cost approximately $300,000:00 to purchase today. The equipmen, t has operated approximately 10,000 houm and has incurred $130,074.48 in life-to-date maintenance expenses. This equipment is not scheduled for replacement in Fiscal Year 2002. In late September Equipment Services was called to adjust the tracks. The technician that was dispatched reported the tracks and segments were so worn that adjusting was not feasible. It was determined that tracks and segments (under carriage) replacement was necessary. After the dozer was moved to the Garage an inspection of the final drives revealed the presence of metal particles, due to worn gears, in the transmission oil. Quotes to replace the tracks, rollers, segments, final drives and cutting clutches and to install a center idler roller to provide additional support for the tracks (to extend the useful life of the new tracks) using Caterpillar parts were received from the following three (3) vendors: Scott Constraction Equipment, Inc. of Lake Charles, Louisiana ............................ $38,995.00 Mustang Tractor & Equipment, Inc. of Beaumont, Texas ...................................... $39,588;00 CLM Equipment Company, Inc. of Nederland, Texas ............................................ $39,736.67 The warranty proposed by Scott Construction and Equipment, Inc. provided for a three (3) year or 4,000 hours (parts and labor). However, Scott Construction and Equipment, Inc. would not perform quarterly track inspections and projected life analysis of the undercarriage. In addition Scott Construction and Equipment, Inc. intended to use third-party (after-market) tracks instead of Caterpillar (OEM) tracks. Only Mustang Tractor & Equipment, Inc. provided an estimate for using only Caterpillar repair parts. In addition, the Mustang warranty for the undercarriage components was three (3) years or 4,000 hours. This warranty as well as the other vendors does not cover normal track wear. Also, Mustang Tractor & Equipment will provide free quarterly track inspections and a written report on current wear rates and recommendations for management and projected life analysis for the undercarriage. The actual costs of $39,624.36 for these repairs are $36.36 more than the original estimate of $39,588.00. The increase was caused by need for additional parts and labor that was determined after disassembly of the equipment. The Public Works and Equipment Services staffs reviewed this track and final drive failure and concurred that the quotation by Mustang Tractor & Equipment was the most cost-effective for the City. A memorandum dated October 15,2001 (copy attached) was sent to the City Manager regarding the need for emergency repairs. PREPARED BY: TK:rd DISPOSITION BY COUNCIL PROCESSED BY CI'I~ SECRETARY APPROVED OTHER (DESCRIBE} APPROVED BY ;ITY MANAGER j~. "- DATE City of Port Arthur, Texas Mayor and City Council Communication DATE REFE~,ENCE SUBJE~CT: PAGE REVISED NUMBER Recommendation to approve payment to Mustang Tractor 1/30/2002 for repairs to equipment #1107 2 of 2 After shipping the dozer to Mustang and partial disassembly, additional repairs (install pipe guards on final drives, replace worn steering linkage, repair leaking liit cylinders, repair brake pedal linkage, repair accelerator/deaccelerator, replace hour meter, repair backup alarm, repair hydraulic oil storage tank leak, repair electrical charging system, repair equalizer bar, and repair electronic engine shut down system) were determined to be necessary for the continued safe operation of the unit. The actual costs of $13,733.89 for the additional repairs are $2,366.11 less than the secondary estimate of $16,100.00 for the additional repairs to the equipment. These additional costs for repairs to equipment # 1107 were addressed in a memorandum dated November 28, 2001 (copy attached) that was sent to the City Manager. The two estimates totaled $55,688.00; whereas the total actual costs for repairs totaled $53,358.25 which is $2,329.75 less than originally estimated. BUDGETARY/FISCAL EFFECT: Funds for vehicle maintenance were approved by City Council in the 2002 Fiscal Budget for various departments and division as object code 43-00, vehicle maintenance. This repair cost will be expensed to the Fiscal Year 2002 Public Works Department--Solid Waste Landfill Equipment Maintenance Account Number: 403-1274-533.43-00, which has a budgeted amount of $214,800.00 and approximately $125,377.59 unencumbered. STAFFING/EMPLOYEE EFFECT: No anticipated effect on staffing is expected with this action. SUMMARY: We recommended that the City Council approve the payment of $53,358.25 to Mustang Tractor & Equipment of Beaumont, Texas for final drives and track repairs to dozer # 1107. Funds for vehicle maintenance were approved by City Council in the 2002 Fiscal Budget for various departments and division as object code 43-00, vehicle maintenance. This repair cost will be expensed to the Fiscal Year 2002 Public Works Department--Solid Waste Landfill Equipment Maintenance Account Number: 403-1274-533.43-00, which has a budgeted amount of $214,800.00 and approximately encumbered. Leslie McMahe~n, Director of Ppblic Works ector of Transportation . RebeCca underhi]~l~, ~ ~" Dave Brannon, Purchasing Coordinator Director of Finance PREPARED BY: TK:rd DISPOSITION BY COUNCIL PROCESSED BY CITY SECRETARY APPROVED OTHER (DESCRIBE} APPROVED BY CITY MANAGER DATE