HomeMy WebLinkAbout03.a. Information Requested on Expenditures3.A
Central Contra Costa Sanitary District
November 30, 2015
TO: FINANCE COMMITTEE
VIA: ROGER S. BAILEY, GENERAL MANAGER
DAVID HEATH, DIRECTOR OF ADMINISTRATION tf'
FROM: TODD SMITHEY, FINANCE ADMINISTRATOR -;�
SUBJECT: INFORMATION REQUESTED ON EXPENDITURES
At the November 24, 2015 Finance Committee meeting, the Committee requested
additional information on an expenditures. Below is staff's response.
Check #36944 dated 11/5/15 for $9,110.37 to Snap -On Industrial
Per Fleet Maintenance Staff, "the former brake lathe was over 15 years old, was
inoperable and had become obsolete which made repairs impossible. The former brake
lathe had never been capable of resurfacing drums and rotors of the larger vehicles in
our fleet. Prior to including the brake lathe in the equipment budget, staff prepared a
return on investment analysis using an estimated number of vehicles requiring drum or
rotor work per year, categorized by vehicle segment and maintenance scenarios, see
attached spreadsheet. While we have kept records of service the current maintenance
system (Accela) makes it hard to query for these specific jobs, however, for the period
of November 2014 to October 2015 staff was able to identify $2177.60 in charges to
perform such brake repairs. This number represents the cost to replace or resurface
drums and rotors, using outside vendors (cost of delivery/pickup not included). The
brake lathe the District purchased cost $9110.00 for a return on investment of slightly
over four years if we don't include the labor for pickup and delivery of parts."
BRAKE LATHE ROI
A
B
C
D
E
F
G
Unit Type
Average Jobs /Year
Cost per Drum /Rotor
Cost for Machining (2)
Machining Cost
Purchase Drums /Rotors
Labor Delivery/Pickup
Sedans /Pickups
24
120
$80
$1,920
$2,880
Med -Duty Trucks /Vans
12
190
$130
$1,560
$2,280
$1,488
Heavy -Duty Truck
6-
$190
$130
$780
$1,140
$744
Trailers
4
$240
$130
$520
$960
$496
*Note- (Columns C &D) most brake jobs are on one axle which has either 2 drums or rotors; if brakes on both axles require replacement these
numbers would double
*Note- most heavy -duty and med -duty drums & rotors cannot be machined locally (CCCounty) which incurs downtime of equipment and labor to
deliver and pickup in Oakland;
*Note labor= Vehicle Service Worker fully loaded rate of $62 /hr; round -trip travel to Oakland is 1 hour and would require two trips
*Note- second option is to buy new drums and rotors to avoid downtime and cost of labor to deliver & pickup rotors from Machine shop
Total Cost of Outside Machining $6,020 Payback <2 years
Total Cost to Purchase New $7,260 Payback<2 years
Total Cost of Machining Light -Duty and Purchasing Others $6,300 Payback <2 years