AGENDA CAPTION:
Title
Consider approval of Resolution 2024-251R, approving the purchase of a Wirtgen Asphalt Milling Machine from Nueces Power Equipment, through a Buyboard Cooperative Contract, in the amount of $573,458.79; authorizing the City Manager, or her designee, to execute such documents as needed to complete the purchase on behalf of the city; and declaring an effective date.
Body
Meeting date: December 17, 2024
Department: Public Works Department- Sabas Avila, Director
Amount & Source of Funding
Funds Required: $200,000.00 down payment / $81,213.84 annual payments (for 5-years)
Account Number: 10006150.60125
Funds Available: $200,000.00
Account Name: Street Operations- Equipment
Fiscal Note:
Prior Council Action: Capital Outlay Approval
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Background Information:
The Street Maintenance Division of the Public Works Department is tasked with maintaining 496.8 miles of city-owned streets and roads. The City’s street maintenance program serves to extend the lifespan of existing roads by proactively applying low-cost treatments to maintain their condition, preventing further deterioration and delaying the need for major repairs or reconstruction, ultimately reducing costs while ensuring smoother and safer roadways for drivers.
An asphalt milling machine is a cornerstone piece of equipment in road maintenance. Its primary function is to remove the upper layers of asphalt from road surfaces, creating a clean and even base for new asphalt overlay. This process ensures a durable and smooth final surface, extending the lifespan of roadways while enhancing safety and drivability.
Currently, the City does not own an asphalt milling machine, relying instead on contractors to mill roads before initiating the overlay process. This dependency increases project costs and can lead to scheduling delays. By purchasing a milling machine, the City can perform this critical step in-house, significantly reducing costs associated with external contracting and enhancing control over project timelines. Staff anticipates that the City will save over $150,000 each year utilizing the milling machine.
By integrating an asphalt milling machine into the City’s fleet, the Streets Maintenance Division will enhance its operational efficiency, reduce costs, and improve the quality and speed of road repairs and overlays. This investment will not only optimize current processes but also solidify the City’s ability to maintain its road infrastructure proactively and sustainably for years to come.
City staff selects roads for maintenance using Pavement Condition Index (PCI) scores, which evaluate the surface condition of roads on a scale from 0 to 100. Roads are prioritized based on their PCI, with low scores indicating the need for extensive repair and higher scores suited for preventive maintenance. Roads are often grouped by neighborhood or region to streamline planning and reduce mobilization costs. For streets with moderate PCI scores, methods like slurry sealing combined with crack sealing are cost-effective for extending pavement life. For lower PCI roads, mill and overlay is employed to restore structural integrity and improve ride quality. This strategic approach ensures efficient resource allocation and maximizes pavement lifespan.
The cost of the milling machine is $573,458.79. The City will pay $200,000 down and finance the remaining $373,458.79 of the machine for a term of 60 months at 4.37% interest rate with annual payments of $81,213.84. The total cost to finance is $32,610.41.
Council Committee, Board/Commission Action:
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Alternatives:
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Recommendation:
Staff recommends the purchase of the Milling Machine to further Street Maintenance Operations in the amount of $573,458.79.