MEETING: LTR ANSPORTATION COMMITTEE MINUTES DATE/ TIME: Monday, March 18, 2019 - 8:00 A.M. PRESENT: IChairman Greg Menold, Greg Sinn, Toni Minton, Greg Longfellow, and Mary Jo Holford ABSENT: Russ Crawford, Brandon Hovey, and Nancy Proehl ______________________ ______________________________________________________ PUBLIC COMMENTS: None MINUTES: Approve MOTION BY MINTON, SECOND BY HOLFORD to approve the minutes of the February 19, 2019, meeting and February 27, 2019, In-Place meeting. MOTION CARRIED on voice vote. OLD BUSINESS: Reconsider T-19-2, Chairman Menold began the discussion by stating the committee had three Purchase/Letting of 2019 options: accept T-19-2 and send it back to County Board, reject all bids, or Tandem accept the low bid of the Western Star from Truck Centers. Mr. Fink presented the documents provided in the Transportation Committee packet and gave a very detailed explanation of all documents. He reviewed the bid tabs of the tandem letting. The difference in the bids was $13,290.00 and if the automatic transmission option was exercised, the difference would be $17,713.00. He explained the details of each of the bid exceptions and explained the reason for each specification. The specification for an In-Tank Heater could not be met with the DEF tank located as specified so that specification was waived for both bidders. CIT pointed this out in their bid and Truck Centers bid the DEF tank as frame mounted but there is no space on the frame which is why the DEF tank location was specified as it was. The specified tires are no longer being manufactured so that specification has to be waived for both bidders. CIT provided the newer version of the specified tire manufacturer and Truck Centers bid Michelin tires. Truck Centers additional bid exceptions included bidding a galvanized steel cab with rivets instead of all aluminum with huck bolts; pocket style galvanized steel door hinges instead of stainless steel piano hinges; Detroit Diesel instead of a Paccar engine; PTO shaft extending through the radiator instead of no PTO shaft through the radiator; 19.0 cfm air compressor instead of 25.9 cfm air compressor; heated wiper as an option instead of included in bid; DEF tank frame mounted instead of above fuel tank; flat leaf front springs instead of taper leaf; no power steering assist instead of power steering assist; and bid bond at 3.79% of new equipment instead of minimum 5%. Mr. Fink provided a list of tandem lettings with results dating back to 1992 showing 20 tandems have been purchased through the bid specifications, the low bid meeting determined to not meet specifications has not been awarded 9 different times to 6 different bidders and the low bid meeting specifications has been awarded all 20 times. Information from a visit to McLean County who has a few Western Star 4700 trucks was also provided. Side-by-side pictures showed: rust on the chrome plated door handle of a 2017 Western Star and no rust on the chrome plated door handle of the 2006 Kenworth being traded, pocket doors of a 2018 TRANSPORTATION Approved 4/15/19 COMMITTEE Western Star and the stainless steel piano hinged doors of the 2006 Kenworth, the underside of the galvanized steel cab of a 2017 Western Star showing small spots where the galvanizing had been chipped exposing the steel and the relatively clean surface of the underside of the aluminum cab of the 2006 Kenworth, and powder-coated steel rims of an older truck after 1-year of snow plowing showing the lost powder-coating of the passenger side which is the plow discharge side versus the driver side rim. The information included the opinion from McLean County Highway Department’s mechanic that the Western Star 4700 is similar in quality to International trucks they had always had and were trying to move away from. McLean County’s recent bid tabs from 2013, 2015 and 2018 were also reviewed showing the lower trade value their 8 to 10 year old trucks were receiving versus the 13 year old 2006 Kenworth as well as showing that CIT was bidding the T470 Kenworth to compete with the Western Star 4700 in McLean County. Mr. Fink noted the rust on the galvanized steel handles of the 2017 Western Star truck causes concern after serving only two winters. He also noted that the aluminum cab is specified because it simply does not react to salt whereas steel corrodes and once the galvanizing is chipped the steel is exposed as shown in the picture of the underside of the 2017 Western Star truck. Mr. Fink noted that in addition to the purchase price and trade value the maintenance and repair costs have to be taken into account. He pointed out that McLean County has 362 miles of county highway, 21 tandems and budgets $250,000 for equipment repair and maintenance while Tazewell County has 204 miles, 10 tandems and budgets $80,000. In 2014 DeWitt County had 100 miles, 5 tandems and budgeted $66,460 while Tazewell County budgeted $80,000. He pointed out that neither McLean nor DeWitt Counties had Western Star trucks prior to McLean County’s 2017 tandems. He lastly advised that regardless, the NADA information shows a 2006 Western Star 4900, which is more apples-to- apples with the Kenworth T800 excepting the aluminum cab, appears to hold its value within roughly $1,700 of the NADA value shown for the Kenworth T800. He reminded this is not the NADA for the Western Star 4700 which was not around in 2006. After hearing the information provided by Mr. Fink, Mr. Menold expressed his opinion on the matter and explained why he supported bringing the topic back to committee for further review. He stated he has 18 years of township experience and is familiar with these types of trucks. He also gave very detailed reasons to support his opinion on why he believes the bid should be rejected, both to allow the specifications to be opened up and not allowing CIT’s bid because it technically did not be specs either. Mr. Menold stated he does not believe galvanized steel is as sensitive as it’s being described or else Western Star would be out of business. He stated if the galvanized steel rusted as fast as it’s being claimed, no one would purchase their trucks. He also explained his opinion on a few of the exceptions and how he does not feel like they are acceptable reasons to be thrown out as exceptions or why the specifications should not be written as they are. Mr. Sinn stated he sat on Transportation Committee for the last 30 years. He stated he was concerned with the tone of the last County Board meeting. He 2 TRANSPORTATION Approved 4/15/19 COMMITTEE stated the connotation was that Tazewell County Highway Department was doing something wrong, like specifications were being written to pin point certain dealers. He stated he has been through the Highway Department having rusted out floors, literally being able to see the ground, and getting next to nothing for trades. He said the switch to an aluminum cab was made to avoid problems that were experienced for years. He stated as years passed and more trucks were purchased, the specifications evolved to prevent issues based on costly experiences. Every step taken by previous county engineers and the previous maintenance supervisor was an evolution and a series of decisions made year after year to improve the fleet based on facts and knowledge. He stated trucks were being traded every single year to keep up with the fleet and avoid large maintenance costs of older trucks. One year, due to budget, a new truck could not be purchased. Highway soon realized that even with a 1-2 year gap, the trucks were making it due to increasingly more detailed specs and having exceptional trucks on the fleet. It took a while to learn how the decisions would play out, but the trucks were lasting longer and also getting better trade-in values. Mr. Sinn stated he is not opposed to taking a look at the specifications, but also would hate to see years of expertise and fine tuning done away with. If certain measures are taken to open up specs, it will be several years before we see repercussions. He added that if bids are rejected, it’s likely that no truck will be purchased this year due to time constraints. He stated that pushes the whole five- year capital plan back and eventually the cost savings will catch up. Mr. Longfellow inquired about the possibility of selling tandems ourselves versus trading them. Mr. Fink said it can certainly be done and has been done at times. He explained the steps that would need to unfold to sell the tandem instead of trade it. Mr. Longfellow also asked about the mileage of the truck and asked if there was a schedule for purchasing new trucks. Mr. Fink stated the available budget controls how often equipment can be upgraded noting that this tandem is now 13 years old and the next tandem replacement is planned in 2 years when that truck will be 15 years old. Mr. Williams answered that the truck currently being traded has 93 thousand miles. Mr. Longfellow asked if the trucks could be held onto for 20 years with 150 thousand miles before being traded. Mr. Williams stated that even though they are high quality trucks, the equipment maintenance and repair budget begins to increase significantly as the trucks get older, not necessarily due to mileage but age.