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Home My WebLink AboutA. PUBLIC WORKS: D-7H DOZER City of Port Arthur, Texas Mayor and City Council Communication DATE REFERENCE SUBJECT: PAGE NUMBER Recommendation to approve payment to 4/8/2002 Mustang Tractor & Equipment, Inc. 1 of 2 RECOMMENDATION: We recommend that the City Council approve the payment of $9,900.22 to Mustang Tractor & Equipment of Beaumont, Texas for a replacement engine for 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 #1107 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 equipment has operated approximately 10,000 hours and has incurred $200,229.62 in life-to-date maintenance expenses. This equipment is not scheduled for replacement in Fiscal Year 2002. Landfill personnel discovered that the engine would not start and notified Equipment Services. Equipment Services technicians were sent to the Landfill to diagnose the equipment failure. Their preliminary diagnosis indicated that the engine had seized and was confirmed upon partial disassembly of the engine at Equipment Services garage facility. The engine failure was apparently caused by an engine oil supply line in the belly pan on the engine being sheared by an unknown object, resulting in the rod bearings seizing to the crankshaf~ when the engine oil drained out. Quotes for a Caterpillar replacement engine were received from the following three (3) vendors: Mustang Tractor & Equipment, Inc. of Beaumont, Texas .......................... $17,554.52 Mustang Tractor & Equipment, Inc. of Houston, Texas ............................ $17,554.52 Scott Construction Equipment Co. of Lake Charles, Louisiana ................. $28,600.00 All estimates included delivery charge. All vendors provided for a six-month unlimited operating hours parts warranty. In the event it was determined that the engine was damaged to the extent that it was not useable in the remanufacturing process, a $7,085.26 core charges would be assessed. The core charges were included within the original estimate of $17,554.72. The Public Works and Equipment Services staffs reviewed the engine failure and concurred that the quotation by Mustang Tractor & Equipment to provide for a remanufactured engine was the most cost-effective for the City. A memorandum dated February 22, 2002 (copy attached) was sent to the City Manager regarding the need for emergency repairs. The final costs of $9,900.22 for these repairs were $7,654.30 less than the original estimate of $17,554.52. The decreased cost was the result of all engine core parts being acceptable and the need for fewer additional parts after the engine disassembly. Deducting the core charges ($7,085.26) and the additional parts savings ($569.04) ~REPARED BY: TK DISPOSITION BY COUNCIL ~ROCESSED BY ,~ITY SECRETARY APPROVED OTHER (DESCRIBE) 3*ITY MANAGER ~ '" DATE City of Port Arthur, Texas Mayor and City Council Communication DATE REFERENCE SUBJECT: PAGE NUMBER Recommendation to approve payment to 4/8/2002 Mustang Tractor & Equipment, Inc. 2 of 2 leaves a balance of $9,900.22 due to Mustang Tractor & Equipment of Beaumont, Texas for the replacement engine. Equipment Services personnel installed the replacement engine. 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 $214,810.00 and approximately $2,868.50 being unencumbered. STAFFING/EiVIPLOYEE EFFECT: No anticipated effect on staffing is expected with this action. SUM~MARY: We recommend that the City Council approve the payment of $9,900.22 to Mustang Tractor & Equipment of Beaumont, Texas for a replacement engine for 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 $214,810.00 and approximately $2,868.50 being unencumbered. Leslie McMahen, PE Director of Transportation Director of Public Works Rebecca Underhill, CPA Dave Brannon Director of Finance Purchasing Coordinator PREPARED BY: TK DISPOSITION BY COUNCIL PROCESSED BY CITY SECRETARY APPROVED OTHER (DESCRIBE) APPROVED BY ;ITY MANAGER ~ATE ORIgiNAL Memo To: Stephen Fitzgibbons, City Manager . ~_~ ~, ~ ~ From: ~o~eE~t~nMe~, ~n.~e~.tEo~'; i' ' ~f°rta~tib~c W°rks~"~'~-'~'~~ CC: RebecCa Underhill, Finance Director Date: 02/22/02 Re: Emergency Engine Replacement for Equipment #1107 We request authority to start emergency repairs to replace the engine in equipment #1107. This equipment is a 1994 Caterpillar D-TH 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 equipment has operated approximately 10,000 hours and has incurred $200,229.62 in life-to-date maintenance expenses including the recent major drive train and undercarriage overhaul/repairs. This equipment is not scheduled for replacement in Fiscal Year 2002. The engine failure appears to have been Caused by an engine oil supply line in the belly pan of the engine being sheared by an unknown object, resulting in the rod bearings to seize to the crank shaft. Quotes for a Caterpillar replacement engine (remanufactured) was received from the following three (3) vendors: Mustang Tractor & Equipment, Inc. of Beaumont, TX .............. $17,554.52 Mustang Tractor & Equipment, Inc. of Houston, TX ............... $17,554.52 'Scott Construction Equipment Co. of Lake Charles, LA. .......... $28,600.00 All estimates include delivery charge, All vendors provide for a six-month unlimited operating hours parts warranty. In the event, it is determined that the dozer's original engine is damaged to the extent that it is not useable in the remanufacturing process, a $7,085.26 core charge(s) will be assessed. The core charge(s) are included within the estimate of $17,554.52. Equipment Services personnel will install the replacement remanufactured engine. Additionally, · Page 1 Emergency Engine Replacement for Equipment # 1107 Page #2 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. Equipment Services staff has reviewed this engine failure and concurs that the replacement engine purchase proposed by Mustang Tractor & F_,quipment, Inc. of Beaumont, Texas is the most cost effective for the City. We have requested that Mustang Tractor & Equipment, Inc. of Beaumont, Texas order the remanufactured engine assembly mediately. Your concurrence with this course of action is respectfully requested. Upon completion of repairs, a Council Communication will be prepared to document the repairs and authorize approval for payment of expenses for this power component assembly. APPROVED: Signa-~u~re Date · Page 2