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Home My WebLink About10A - Purchase of Parks Equipment ~p~~ c,,~ 4646 Dakota Street S.E. 'iJ~'t; Prior Lake, MN 55372-1714 \~'/ ~ CITY COUNCIL AGENDA REPORT MEETING DATE: JUNE 16, 2008 AGENDA #: 10A PREPARED BY: AL FRIEDGES, PARKS AND FLEET SUPERVISOR AGENDA ITEM: CONSIDER APPROVAL OF A RESOLUTION AUTHORIZING THE PURCHASE OF: 1. ONE 2008 HOLDER FOUR WHEEL DRIVE ARTICULATING MACHINE AND ONE 2008 HYDRAULIC BROOM 2. ONE 2008 80 INCH AERO VATOR SEEDER 3. ONE 2008 65 INCH STOCKER TREE SPADE DISCUSSION: Introduction The purpose of this agenda is to consider approval of a resolution authorizing the purchase of: 1. ONE 2008 HOLDER FOUR WHEEL DRIVE ARTICULATING MACHINE AND ONE 2008 HYDRAULIC BROOM 2. ONE 2008 80 INCH AERO VATOR SEEDER 3. ONE 2008 65 INCH STOCKER TREE SPADE and the trade in of: 1. ONE 1998 HOLDER FOUR WHEEL DRIVE ARTICULATING SIDEWALKlTRAIL MACHINE (UNIT #506) AND ONE 1998 HYDRAULIC BROOM 2. ONE 1984 GRASS SEEDER (UNIT #665) Historv As part of the Capital Improvement Program (CIP), the City Council adopts an Equipment Replacement Fund and Matrix each year. The purpose of this fund and matrix is to identify and budget for equipment and vehicles that need replacement due to age or wear, or for additional equipment that needs to be purchased due to growth. Actual expenditures for all equipment identified are subject to Council approval. The 2008 matrix identifies $82,538 for a four wheel drive articulating sidewalk/trail machine and $11,246 for a grass seeder. Additionally, our currently owned 1988 Vermeer 44 inch tree spade is identified for replacement in 2017. The matrix identifies $41,527 for the replacement of the tree spade. In 2006, staff extended the life expectancy of the Vermeer tree spade from 20 years to 30 years. At that time there was excessive wear in the four stabilizers that was not noticed. The cost of replacing these stabilizers is excessive and therefore cannot be justified. For this reason, the existing spade needs to be moved back up in the matrix and replaced in 2008. The 2008-2019 Equipment Matrix identifies the replacement of: 1. ONE 1998 HOLDER FOUR WHEEL DRIVE ARTICULATING SIDEWALKlTRAIL MACHINE AND ONE 1998 HYDRAULIC BROOM 2. ONE 1984 GRASS SEEDER 3. ONE 1988 VERMEER 44 INCH TREE SPADE www.cityofpriorlake.com R.ICouncil\2008 Agenda Reportsl0616 08\equipmf3l\g}I/F~~2f49:~800 / Fax 952.447.4245 Although these are suggested replacement schedules, as with any piece of equipment, the maintenance records and repair costs related to each vehicle or piece of equipment are analyzed prior to requesting Council approval. Current Circumstances For City Council reference, attached to this agenda is a detailed needs analysis for each piece of equipment proposed for replacement as outlined later in this report. 1998 Holder Sidewalk/Trail Machine The Parks Maintenance Division currently utilizes a 1998 Holder Sidewalk/Trail Machine for snow removal functions on the sidewalks and trails during the winter months. This machine is designed very narrow in width, can withstand constant jarring and shaking that occurs when plowing and is also capable of handling heavy snowfalls. We also utilize Toro mowers equipped with brooms and blowers in cleaning ice rinks and sidewalks around City facilities but are not intended to clean long expanses of trails or remove heavy or deep snow. The majority of the sidewalks in our community are five feet (60" wide). Because of the narrow widths of sidewalks, this specialized piece of equipment is utilized for snow removal. Currently, there are only three manufacturers that offer a heavy duty machine equipped with snow blowers, plows and brooms to perform winter maintenance functions. The existing 1998 Holder is 10 years old and has accumulated 1,936 hours. This piece of equipment needs various repairs which are as follows: I Repairs Needed I Front cab doors rusted out I Front cracked lift arms I Replace worn out rear offset axles I Battery I High flow kit for broom Replace broom complete assembly replace worn out drive system and hydro turn on broom Replace muffler and pipe Arctic heat kit I Total parts I Tax I Parts subtotal I Freight I Labor - 100 hours at $30/hour I Grand Total Parts Costs $6,300.00 $2,800.00 $8,400.00 $78.95 $7,300.00 $5,318.00 $575.00 $1,000.00 $31,771.95 $2,065. 18 $33,837.13 $500.00 $3,000.00 . $37,337.13 These repairs would cost $37,337.13. At this point, the City can trade the 1998 Holder for $10,000.00. RICouncil\2008 Agenda Reports\06 16 08\equipmemt purchase agenda DOC Staff contacted three vendors. All three vendors offered their machines on the State of Minnesota Purchasing Program. Staff looked at purchasing slightly used sidewalk plows, but could not locate any with less than 2300 hours. The bids for a new sidewalk plow varied by $16,812.00. The low bid is $86,280.00 from Cushman Motor Company with a net price of $81,238 including trade in and tax. The bids received are as follows: Cushman Motor MacQueen Sharber and Equipment Sons Make/Model Holder 4.74 Trackless MT5 Selos Trans Giant Price $86,280.00 $99,388.00 $106,800.00 I Trade-In ($10,000.00) ($3,500.00) ($10,000.00) Sub- Total $76,280.00 $95,888.00 $96,800.00 Tax $4,958.20 $6,232.72 $6,292.00 Total $81,238.20 $102,120.72 $103,092.00 $82,538.00 was allocated in the matrix for this purchase. At the March 17,2008, City Council meeting staff recommended that additional research needed to be conducted to justify the expense of the purchase for this machine. The following are areas where staff looked for additional information for this piece of equipment: 1. How many miles of sidewalks vs. trails are maintained during the winter months? 2. What is the hourly cost to operate this piece of equipment including purchase cost of the sidewalk machine, operator cost, fuel and repairs? We can track these costs from past history of our existing 1998 Holder. 3. What would the cost be to contract out the sidewalk section of our Winter Maintenance Program? 4. Are there other less expensive equipment purchase options that would still perform the same level of service? 5. Based on the cost of snow removal on our sidewalks, is this still a level of service that the City still wants to perform? The justification for these five criteria is addressed in the Equipment Needs Analysis attached to this report. 1984 Grass Seeder The Parks Maintenance Division utilizes grass seeders for seeding newly established areas, i.e. new parks that come on line. The most intense usage of the seeders comes from over-seeding established turf areas particularly on athletic fields that become worn out due to high usage. With the escalating cost of grass seed, accurate calibration is essential. The new seeder that staff proposes to purchase has the newest available technology for calibration and is equipped to prepare the desirable seed bed needed for optimum germination. This means the City will not have to close fields where we already R\Council\2008 Agenda Reports\06 16 08\equipmemt purchase agendaDOC experience shortages for users. At new parks the City establishes turf as soon as possible so children and their parents are not walking through mud to use playground equipment. The existing seeder does not require major expenses in repairs, but rather, it has a poor calibration system and does not have the capabilities to prepare a seed bed needed for planting on established turf. Annually the City spreads $10,000 in seed as part of park maintenance. Bids were received from two vendors. The bids varied by $624.09. The low bid amount is $12,780 from Wahl Enterprises which includes trade-in, freight and tax. The bids received are as follows: I Vendor I Make/Model I Price I Trade In Freight Sub-total Tax Total Wahl Enterprises UA82-011 Aero Vator $11,800.00 ($250.00) $450.00 $12,000.00 $780.00 $12,780.00 First Products I UA82-011 Aero Vator I $11,886.00 I No trade accepted I $700.00 I $12,586.00 I $818.09 I $13,404.09 I 1998 Vermeer 44 inch Tree Soade The Parks Maintenance Division utilizes a Vermeer 44 inch tree spade with attachments that mount on the front of our Case loader. This piece of equipment is used to transplant inventory trees (approximately 75 per year) from the City's nursery consisting of 250 trees. These trees are planted as whips, (small bareroot trees approximately 5 feet in height), nurtured for approximately 3 years, and transplanted as 18 feet high trees (1 ~-2" + dia) throughout our park system, City facilities and boulevards. Replacement of trees is necessary due to Dutch Elm, Oak Wilt, and other tree diseases; boulevard plantings and replacement of trees in existing parks as well as new parks as they come on line. The existing Vermeer 44 inch spade is identified in the Equipment Matrix with an estimated 30 year life expectancy (moved from 20 year life expectancy to 30 year life expectancy in 2006). As with some of our equipment, due to heavy usage and parts that are not easily identified for excessive wear, the tree spade has out lived its usefulness. As identified in the Equipment Needs Analysis, the cost to repair the tree spade is not justified. The existing 1988 Tree Spade is 20 years old and has outlived its intended purpose. The spade has various needed repairs which are as follows: Parts Cost $776.00 $2,328.00 $4,412.88 Repairs Needed Four spade slides ($194/ea) Four spades ($582/ea) Two right side stabilizers ($2,206.44/ea) Two left side stabilizers ($1,867.11/ea) I Subtotal $3,734.22 $11,251.10 R\Council\200B Agenda Reports\06 16 08\equipmeml purchase agendaDOC I Tax $731.32 I I Subtotal $11,982.42 I I Labor-17hours@$30/hr $510.00 I I Total . $12,492.42 I These repairs would cost $12,492.42. The City did not receive an offer from either vendor on a trade-in. Staff recommends scrapping the Vermeer 44 inch spade. The City contacted three manufacturers, Novak's Garage, Big John and Vermeer. Vermeer no longer manufacturers tree spades. The bids for the new tree spade varied by $768.21. The low bid is $39,636.83 from Novak's Garage. The bids received are as follows: I I Make/Model I Price I Trade-In Tax Total Novak's Garage Stocker 65 inch $37,217.68 $0 $2,419.15 $39,636.83 Big John Big John 62 inch $37,939.00 $0 $2,466.04 $40,405.04 Vermeer No longer manufacturers these spades. I I ISSUES: The attached needs analysis analyzes each piece of equipment in the following categories: I. Refurbishing II. Lease/Rental Options III. Zero Value Operation IV. Alternative Fuel Analysis V. Equipment Utilization VI. Equipment Partnership VII. Used Equipment Options By analyzing each of the categories for each piece of equipment staff believes the best options for replacement of the needed equipment have been provided by this report. FINANCIAL IMPACT: The Vehicle Equipment Matrix budgeted $82,538 for a four wheel drive articulating sidewalk/trail machine and $11,246 for a grass seeder in 2008. Additionally, there is $41,527 identified to replace a tree spade in 2017. At the February 19, 2008, and March 17, 2008, City Council meetings, several pieces of equipment were approved. Following are the approved equipment, budget amounts and actual expenditures after receiving bids. Equipment Approved Jacobson HR9016 mower Jacobson Turf Cat Mower Tow Master Double Ramp Trailer Tow Master Full Ramp Trailer RICouncil12008 Agenda Reports\06 16 08\equipmemt purchase agendaDOC Matrix Budget $81,901.00 $34,904.00 $7,745.00 $7,745.00 Actual Expenditures $68,338.92 $27,821.00 $5,967.84 $6,417.81 2578 Cat Skid Loader Sterling L T9500 Dump Truck I Toro Multi Pro Sprayer I F550 Truck I Proposed Equipment Holder SidewalklTrail Machine I Aero Vator Seeder $11,246.00 $12,780.00 I Tree Spade Not identified $39,636.83 I Total $542,281.00 $531,691.14 Including the purchase of the tree spade with no funding identified for 2008, the actual Matrix expenditures will be $10,589.86 less than budgeted. $41,853.00 $205,815.00 $35,315.40 $173,874.03 $31,933.00 $36,601.00 $25,491.84 $54,809.27 $83,538.00 $81,238.20 ALTERNATIVES: 1. Approve a resolution authorizing the purchase of the proposed equipment and trade in the existing equipment as detailed in this report. 2. Table this agenda item for a specific reason. 3. Deny this agenda item for a specific reason and provide staff with direction. RECOMMENDED Alternative #1. MOTION: ReVi"1}1 7 h L Frank Boyles. ~ver; .... R.\Council\2008 Agenda Reports\06 16 08\equipmemt purchase agenda DOC A RESOLUTION AUTHORIZING THE PURCHASE OF: 1. ONE 2008 HOLDER FOUR WHEEL DRIVE ARTICULATING MACHINE AND ONE 2008 HYDRAULIC BROOM 2. ONE 2008 80 INCH AERO VATOR SEEDER 3. ONE 2008 65 INCH STOCKER TREE SPADE AND THE TRADE IN OF: 1. ONE 1998 HOLDER FOUR WHEEL DRIVE ARTICULATING SIDEWALKlTRAIL MACHINE AND ONE 1998 HYDRAULIC BROOM 2. ONE 1984 GRASS SEEDER Motion By: Second By: WHEREAS, Each year the City Council adopts an Equipment Replacement Fund and Matrix as part of the Capital Improvement Program (CIP); and WHEREAS, The matrix identifies $82,538 for a four wheel drive articulating sidewalk/trail machine and $11,246 for a grass seeder; and WHEREAS, Additionally, the currently owned 1988 Vermeer 44 inch tree spade is identified for replacement in 2017. The matrix identifies $41,527 for the replacement of the tree spade; and WHEREAS, Staff recommends that the 1988 Vermeer 44 inch tree spade be replaced in 2008; and WHEREAS, An analysis of each piece of equipment proposed for replacement was included in the agenda report; and WHEREAS, Bids were solicited through the State Purchasing Program for the sidewalk/trail machine; and WHEREAS, Staff is authorized to trade in one currently owned 1998 Holder four wheel drive articulating sidewalk/trail machine (Unit #506) and purchase one Holder 4.74 from Cushman Motor for a purchase price not to exceed $81,238.20; and WHEREAS, Staff is authorized to trade-in one currently owned 1984 grass seeder and purchase one UA82-011 Aero Vator seeder from Wahl Enterprises for a purchase price not to exceed $12,780.00; and WHEREAS, Staff is authorized to trade in one currently owned 1988 Vermeer 44 inch tree spade and purchase one Stocker 65 inch tree spade from Novak's Garage for a cost not to exceed $39,636.83. R:\Counci1\2008 Agenda Reports\06 16 08\equipment purchase reso.doc www.cityofpriorlake.com Phone 952.447.9800 / Fax 952.447.4245 NOW THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE, MINNESOTA as follows: 1. The recitals set forth above are incorporated herein. 2. Staff is authorized to trade in and purchase the above listed equipment. 3. Funds are to be drawn from the Equipment Replacement Fund and Matrix Account #410-45200- 580. 4. All pieces of equipment shall be purchased for a total price not to exceed $133,655.03. PASSED AND ADOPTED THIS 16TH DAY OF JUNE 2008. YES NO Hau$len Erickson Hedberg leMair Millar Haugen Erickson Hedberg leMair Millar Frank Boyles, City Manager R:\Council\2008 Agenda Reports\06 16 08\equipment purchase reso.doc EQUIPMENT NEED ANALYSIS Equipment: Holder Four Wheel Drive Articulating SidewalklTrail Machine (Unit #506) Year: 1998 Mileage/Hours: 1,936 I. Refurbishimr Analvsis: The 1998 Holder needs $37,337.13 worth of repairs to continue to perform its intended use. The machine currently has accumulated 1,936 hours on the engine and drive train. After spending $37,337.13 in repairs, the machine itself continues to age. This can result in uncertainties as to the conditions of the frames, hydraulics, electronic components and attachments. Additionally, the resale value continues to decrease. II. Lease/Rental Ootions: See Equipment Utilization III. Zero Value Ooeration: This machine has met its life expectancy for its intended purpose. Costly repairs of$37,337.13 are needed to keep his machine functional. At this time, the City can receive a trade-in value of $10,000. By operating this vehicle to zero value, we would loose $37,337.13 (repairs) and $10,000 (trade-in) for a total of$47,337.13. IV. Alternative Fuel Analvsis: The proposed Holder is equipped with a Deutz 85HP diesel engine capable of operating on B5 diesel fuel. The engine is low emission, tier 3 compliant. V. Eauioment Utilization: As discussed at the March 17,2008, City Council meeting, staff recommended performing the following research to justify the purchase of this machine. 1. How many total miles of sidewalks vs. trails do we maintain during the winter months and how many miles are performed specifically by the Holder? ~ There are a total of79.36 miles of trails and sidewalks in the City of Prior Lake. During the winter there are 26.83 miles of trail plowed and 18.72 miles of sidewalk plowed for a total of 45.55 miles of trails/sidewalks maintained during the winter months. ~ The Holder is utilized for the 18.72 miles of sidewalk. R:\Council\2008 Agenda Reports\06 16 08\equipment needs analyis Unit 506.doc Created on 6/5/20088:16:00 AM 2. What is the hourly cost to operate this piece of equipment including purchase cost of the sidewalk machine, operator cost, fuel and repairs? > 1998 Holder purchase price $61,184.00 ~ Operator cost for the life of holder $58,080.00 > (1936 hours x $30/per hour) ~ Fuel cost for life of Holder $2,799.00 > Repair cost for life of Holder $21,295.00 ~ Total Cost $143,358 Cost per Hour (1936) $74.05 3. What would the cost be to contract out the sidewalk section of our Winter Maintenance Program? ~ The City of Bloomington contracts out snow removal services on a part of their sidewalks. In 2007, after Request for Proposals, they entered into contract for $80.00 per hour per machine. Assuming that the rate would not increase for 2009, the following would depict an estimated cost of snow removal for the City of Prior Lake. The cost is based on proposed 2008 Holder purchase price, a 10 year life expectancy and utilizing past history from existing 1998 Holder. Total Cost Average Cost Per Year $8,123.80 $5,808.00 $279.90 $2,129.50 $16,341.20 2008 Holder Operator Cost Fuel Cost Repair Cost Totals $81,238.20 $58,080.00 $2,799.00 $21,295.00 $163,412.20 The following is based upon past history that the machine is utilized approximately 200 hours per year of which 100 of these hours are accumulated during snow removal operations. Average yearly cost ($16,341.20) / by yearly operating hours (200) = average cost per hour ($81.71). 4. Are there other less expensive equipment purchase options that would still perform the same level of service? ~ Staff contacted many equipment vendors and found three machines the Holder, Trackless M.T5 or the Belos Trans Giant that are specifically designed for narrow 5 foot wide sidewalks and that will stand up to the continuous abuse of removing snow. All three machines were bid and itemized in the agenda report. Please note these machines can also be used on trails. 5. Based on the cost of snow removal on our sidewalks, is this still a level of service that the City wants to perform? a. The majority of the sidewalks maintained for snow removal operations by the Holder are identified in our Winter Operations Manual as high priority routes. High priority routes are: emergency, City facility and school access sidewalks. In 2009, the schools are proposing to expand the "no bus pick-up service" for students to a 1 mile radius for K-5 and a 1.5 mile radius for middle school and high school students. If Council chooses to expand the priority routes, additional miles of sidewalks/trails will be added. b. The City of Prior Lake has an ordinance that residents clear the sidewalks adjacent to their property. What would the public perception be if the City discontinued snow removal operations on our sidewalks and trails? c. The existing Holder is utilized for maintenance operations during the summer months as well, i.e. sweeping sidewalks/trails, athletic field maintenance activities, pulling wood chipper in remote areas, etc. The non-snow removal use is not substantial and we haven't tracked the hours for that use so they were not factored in to the analysis. d. The operational cost to own the machine is $81.71 per hour. The 2007 hourly rate to contract snow removal services for the City of Bloomington was $80 per hour, although Bloomington has City owned machines as well to respond to sidewalks/trails that potentially get plowed in by the County and State plows the following day during wing back operations. R:\Council\2008 Agenda Reports\06 16 08\equipment needs analyis Unit 506.doc Created on 6/5/20088: 16:00 AM VI. Eauinment Partnershin: With the utilization of this machine by the City of Prior Lake Parks Maintenance Division and the timing of the need occurring at the same time Le. snow removal operations, partnerships with other organizations is not a viable option. VII. Used Eauioment Ootions: Staff was unable to locate a sidewalk/trail machine with less than 2,300 hours. R:\Counci1\2008 Agenda Reports\06 16 08\equipment needs analyis Unit 506.doc Created on 6/5/2008 8: 16:00 AM EQUIPMENT NEED ANALYSIS Equipment: Grass Seeder (Unit #665) Year: 1984 I. Refurbishine: Analvsis: Due to the age of the 1984 grass seeder, it cannot be retrofitted to the calibration target rates for seed bed preparation application rates. With the escalating cost of grass seed ($10,000 in 2008) accurate calibration is essential. The new seeder that staff proposes to purchase has the newest available technology for calibration and is equipped to prepare the seed bed needed for optimum germination. II. LeaseIRentalOotions: The seeding window (timing) for applying grass seed is all weather dependant. If grass seed is not applied at the optimum time, germination rate decreases dramatically. However the estimated annual rental cost would between $1,100 and $1,500. The cost of the new machine is $12,780 with an expected life of24 years the annual cost to the City is $532/yr. Based on equipment use flexibility and annual cost purchase of a new seeder is the most prudent action. III. Zero Value Ooeration: The existing grass seeder has been operated to zero value with no alternative to upgrade with new technology for precise application rates. IV. Alternative Fuel Analvsis: This piece of equipment is an attachment; therefore it is not equipped with an engine. V. Eauioment Utilization: The proposed Aero Vator seeder can be utilized by all Public Works Maintenance Divisions. VI. Eauioment Partnershio: With the limited seeding window for applying grass seed by the City of Prior Lake Parks Division and the timing of the need occurring at the same time, partnerships with other organizations is not a viable option. VII. Used Eauioment Ootions: Staff was not able to locate a used Aero Vator seeder. R:\Council\2008 Agenda Reports\06 16 08\equipment needs analyis Unit #0665 (seeder).doc Created on 6/5/20088:53:00 AM EQUIPMENT NEED ANALYSIS Equipment: Vermeer 44 inch Tree Spade (Unit #512) Year: 1988 \.. i { I. Refurbishinl! Analvsis: The 1988 Vermeer 44 inch tree spade needs $12,492.42 in repairs. I Repairs Needed Parts Cost I Four spade slides ($194/ea) $776.00 I Four spades ($582/ea) $2,328.00 I Two right side stabilizers ($2,206.44/ea) $4,412.88 I Two left side stabilizers ($1,867.11/ea) $3,734.22 I Subtotal $11 ,251.1 0 I Tax $731.32 I Subtotal $11,982.42 I Labor - 17 hours @ $30/hr $510.00 I Total $12,492.42 Additionally, Vermeer has discontinued manufacturing tree spades, resulting in replacement parts getting harder to purchase. II. Lease/Rental Ootions: The proposed tree spade is being equipped to attach to our City owned loader. Lease or rental spades of this size will not attach to our existing equipment. Staff also researched hiring all of our tree moving by a private contractor. The following is an estimated yearly cost to contract out all of our tree moving activities: I Average number of trees transplanted per year I Cost per tree (contracted out) I Estimated cost per year (contracted out) 75 $250.00 $18,750.00 Based on an average contracted out cost to transplant the City owned trees from our nursery of $18,750 and lease/rental options not viable, staff recommend purchasing the 65 inch Stocker. R:\Council\2008 Agenda Reports\06 16 08\equipment needs analyis Unit 512.doc Created on 6/5/2008 12:05:00 PM III. Zero Value Oneration: The 1988 Vermeer 44 inch tree spade has been operated to zero value. Additionally, the two vendors that submitted bids for new spades did not offer a trade-in price. IV. Alternative Fuel Analvsis: The proposed tree spade is an attachment and is not equipped with an engine. V. Eauinment Utilization: The tree spade will be utilized by all City of Prior Lake departments that require trees transplanted on their projects, i.e. storm water retention areas, boulevards, street reconstruction projects, parks, and City facilities. As with all equipment that experiences scheduling conflicts, maintenance staff employees meet to assure that all equipment is scheduled to their maximum potential and is agreed upon by all divisions that are affected. VI. Eauinment Partnershio: The tree spades are designed to attach to our existing front-end loader. The City has "borrowed out" our spade in the past to other public entities as part of our Equipment Sharing Program. Additionally, at this time, there are only a small number of communities that operate their own nursery. VII. Used Eauinment Ontions: No used spades were located. R\Council\2008 Agenda Reports\06 16 08\equipment needs anaiyis Unit 512.doc Created on 6/5/2008 12:05:00 PM