To: Members of the Public Works Commission
From: John Arney, Fleet Services Manager
Title
Resolution Approving a Purchase Agreement with Wagner Equipment for (1) 140LVR AWD Motor Grader
Body
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Executive Summary
The Fleet Services Manager is requesting approval of a purchase agreement with Wagner Equipment Company for the purchase of one (1) 140LVR AWD Motor Grader. The new asset will replace an existing motor grader that has exceeded the lifecycle for this asset class and has met all the requirements for replacement as outlined in the Vehicle Replacement Policy. This request is fully funded through contributions to the Vehicle Replacement Fund. We are seeking Council approval to move forward with the purchase order.
History of Past Town Council, Boards & Commissions, or Other Discussions
The purchase of this asset was originally approved in the 2023 budget and is part of the carry forward amount approved for the 2024 budget earlier this year. The purchase was delayed due to cost and manufacture delays.
Discussion
The Fleet Division works with each department to manage vehicle assets at the lowest total lifecycle cost that we can within available resources. Departments contribute annually to the Vehicle Replacement Fund for vehicles and equipment in their fleet. Funds are then used to replace vehicles and equipment based on the Vehicle Replacement Policy. The policy provides a standard for identifying replacements at their lowest total lifecycle cost. The motor grader has a targeted replacement of 6500 hours or 12 years which is the projected lowest total lifecycle cost for this class of vehicle.
The motor grader that will be replaced is asset number 023 assigned to the Public Works Streets Division. It has met the criteria established in the New Vehicle Purchasing & Replacement Policy. The asset was kept in service for 21 years due to the low annual accumulated hours and the asset remained reliable for the Streets Division. The Caterpillar 140 model was chosen by the Streets Division in part because Caterpillar is an industry leader in construction equipment. The Streets Division has years of operating hours driving the Caterpillar motor grader. The new motor grader has improved safety features for the operator with the cab designed for maximum comfort. It offers greater visibility for the operator and precise hand controls. The new machine has newer filtration technology, moves more material, uses less fuel and allows for lower maintenance intervals which lowers the operating cost. The machine has CAT Link telematics that helps manage the machine and operate more efficiently. Our technicians will be able to diagnose the machine with the Cat diagnostic software.
Over the past three years the Streets Division has used several types of motor graders for winter snow and ice control operations. The Streets Division feels that the operation of the Cat 140 is superior to other manufactures in operations and function when compared to the Sany and John Deere. The controls in the John Deere were less intuitive and the machine feels like had less pushing and cutting force. The Sany SMG 200 had a lack of forward visibility and an electric inching pedal with no fine control for precise operations. The Sany All-Wheel Drive system was nonfunctional in snow operations. The Sany electronic float hindered operation of the machine when switching to float mode. The blade would drop as soon as it was activated, resulting in lost control of the blade height.
Sourcewell Caterpillar contract #011723-CAT was used for sourcing this new asset. The replacement of this grader was approved in the 2023 budget but was delayed due to manufacture delays. The replacement was approved in the 2023 carryforward amount for the 2024 budget. This replacement will be fully funded through the Vehicle Replacement Fund. The Public Works Department is seeking Town Council approval as the expenditure is above the Town Manager’s approval limit.
Budget Impact
The cost to purchase this motor grader is $403,778 and will be paid for by the Vehicle Replacement Fund 221-8100-481.70-40 through contributions by the department.
Staff Recommendation
Staff recommends that the Public Works Commission recommend to Town Council to approve the Resolution as introduced by title.
Proposed Motion
“I move that the Public Works Commission recommend that Town Council approve the attached Resolution as introduced by title.”
Alternative motions:
“I move to recommend that Town Council approve the attached Resolution as introduced by title, with the following conditions: (list conditions)”
“I move to continue this item to the Public Works Commission meeting on (date) to allow additional time to (list information needed)”
Attachments
Agreement
Attachment A: Quote