Approve the purchase under State Contract of two all-wheel-drive motor graders with snow wing attachments in the amount of $468,814.92, plus the trade in of two non all-wheel-drive 1986 and 1989 motor graders and a 1984 D7G dozer.

 

The reason for the action is the City's need to replace older equipment with newer more efficient equipment that will allow the Streets Section to maintain its current level of service.

• The Streets Section has budgeted $500,000 in Fiscal Year 2013 for the purchase of an All-Wheel Drive Motor Grader with snow wing attachment in account number 040-3203-601-4401.
• The purchase of one (1) All-Wheel Drive Motor Grader is $308,765.83
• The trade in value for the 1986 motor grader is $52,165.37 and the 1989 motor grader is $56,270.25.
• The trade in value for the 1984 D7G dozer is $40,281.12.
• Total trade in value of all equipment is $148,716.74.

Maintain and deliver quality, reliable infrastructure.

None previously.

• Option A: Accept State contract bid from RDO as the lowest, responsive bidder for the  amount of $468,814.92 for the two (2) All- Wheel Drive Motor Graders with snow wing attachments, and the trade in of two (2) non all wheel drive motor graders and one (1) dozer.
• Option B: Accept State contract bid from RDO as the lowest responsive bidder for the amount of $216,319.34 for one (1) All Wheel Drive Motor Grader with snow wing attachment, and trade in one (1) non all wheel drive motor grader and one (1) dozer.
• Option C: Conduct competitive bid process.
• Option D: Continue to use existing motor graders.

Within the Streets fleet, the equipment has become aged and replacements have been deferred for a few years due to the declining Highway User Revenue Funds (HURF). This year it was identified that the HURF fund balance had the capacity to fund some equipment replacement. One of Streets top needs was a All-Wheel Drive Motor Grader with snow wing attachment.  Staff programmed money into the budget using projections from verbal quotes from two distributors. Within the next few years it was projected that equipment needs would grow, and now we had the opportunity to address one need. As the equipment was purchased in groups this was an opportunity to move the needs apart for future replacements. Streets has currently four (4) motor graders that meet the criteria for replacement. With this State contract, it would address two of these needs.

The oldest motor grader is 26 years old (1986), has 7,600 hours on it and life to date costs are $92,400. The main concern with this motor grader is that it has become under powered and the hydraulics have become very slow, which affects the efficient operation of the machine. A certified refurbish of this machine would be approximately $200,000, which would include an engine rebuild, injectors, fuel system parts and a turbo for the engine to increase the power. It would include hydraulic cylinders and other major hydraulic parts, and a transmission rebuild. Streets has another motor grader (1989) that will meet its replacement criteria within the next six months, it is 23 years old, and the life to date costs are $144,000. This motor grader has 8,700 hours on it, so by the next calendar year it will meet the 9,000 hour criteria set by the Fleet Committee. This piece of equipment has had many significant repairs (transmission, drive train and hydraulics) in its lifetime and the operation is similar to the older one, as it is not as efficient in the daily operation. As these pieces of machinery are older it may be difficult to find parts to repair them. The Fleet Committee has reviewed the request to replace the motor graders and they voted unanimously in favor of replacing them. The snow wing attachments will be removed before trade in and used as replacement parts for the existing motor graders the attachments will fit.

Staff also identified an underutilized dozer that would also qualify for trade in to assist with this purchase. The dozer is in need of a significant amount of repairs (track repairs, major hydraulic repairs, drive train) that would cost approximately $40,000 and has become too expensive to keep in the Fleet. As times have changed, we could sustain our operations without this piece of equipment as we have one similar dozer within the Streets fleet. The Fleet committee was very receptive to this idea, as it helps accomplish the goal of reducing the City's fleet. 

Staff presented to the Budget Committee this proposal and it was voted to progress with the process. The vendor agreed to accept trade in of all three pieces of equipment with a total trade in value of $148,716.74, and provide two new all-wheel drive motor graders with snow wing attachments for a cost to the City of $468,814.92.  In short, the City reduces its overall fleet by one piece of equipment and receives two new all-wheel drive motor graders.

For future replacements, all-wheel drive motor graders will be preferred, as they are more efficient in dirt grading and snow plowing operations. The front steering wheels when engaged in all-wheel drive mode, help pull the the material, utilizing the horsepower more evenly, therefore reducing the wear and tear on the machine. Due to the terrain and hills in Flagstaff, all-wheel drive motor graders would provide a safer operation and would help maintain the core services that the Street Section provides.
 
Staff also researched the availability of used equipment for purchase; however, the City prefers all-wheel drive motor graders which are not available on the market to purchase used or to rent.

When preparing to purchase the replacement motor grader, staff became aware of a State contract that could be used for this purchase. The Arizona Department of Transportation conducted a formal solicitation for bids to purchase motor graders and the process concluded that RDO equipment company was the most responsive bidder.

The warranty on the equipment is fully extended "bumper to bumper" to any defects in workmanship and materials for seven (7) years. The warranty does not cover items that are considered to be operating and maintenance items ( tires, oil changes, brakes etc)  

The City of Flagstaff has had a long working relationship with the RDO Equipment Company (RDO), a local business, for the last twenty (20) plus years and has their equipment currently in the fleet.   In this time, Fleet Maintenance staff and equipment operators have gained confidence in RDO’s abilities to the provide warranty work, preventive maintenance and product support needed with this purchase.

Currently the Streets Section has two (2) All-Wheel Drive Motor Graders out of nine motor graders total. The replacement of two old, non-all wheel drive graders with these all-wheel drive motor graders with snow wing attachments will allow for the Street Section to meet the expected level of service to the community, as they are more efficient in their operation.   

None

• Option A:  Accept State contract bid from RDO as the lowest responsive bidder for the amount of  $468,814.92 for the two (2) All Wheel Drive Motor Graders with snow wing attachments and the trade in of two (2) non all-wheel drive motor graders and one (1) dozer.
• Option  B:    Accept State contract bid from RDO as the lowest responsible bidder for the amount of $216,319.34 for one (1) All- Wheel Drive Motor Grader with snow wing attachment and the trade in of one (1) non all-wheel drive motor grader and one (1) dozer.
• Option C:    Conduct competitive bid process.
• Option D:    Continue to use existing non all-wheel drive motor graders with higher maintenance cost and potential challenges in finding parts