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HomeMy WebLinkAbout11B - Purchase of Truck, Snow and Ice Control Equipment MEETING DATE: AGENDA #: PREPARED BY: AGENDA ITEM: DISCUSSION: January 4,2010 118 AI Friedges, Parks and Fleet Maintenance Supervisor CONSIDER APPROVAL OF A RESOLUTION AUTHORIZING THE PURCHASE OF TRUCK, SNOW AND ICE CONTROL APPLICATION EQUIPMENT UPGRADES AND FUNDING FOR VEHICLE AND EQUIPMENT REFURBISHING Introduction The purpose of this agenda item is to request City Council authorization to upgrade the sand salt application equipment on five city trucks and to approve funds to refurbish two pieces of City equipment. Historv Prior to 2003-04 Winter Season, the Public Works Department applied a sand/salt blend to City streets as an anti-icing and de-icing agent. The mixture was applied at rates of 800-1,500 pounds per lane mile. The sand/salt mixture needed to be cleaned and removed from City streets and sensitive environmental structures in the spring and summer. This work to remove the large salt and sand deposits involved a significant Staff commitment. Since then, with City Council approval, staff has implemented a full scale operation of anti-icing and de-icing programs that involve blending straight salt with environmentally friendly organic products. These practices have reduced staff time and product costs associated with winter maintenance activities, while protecting sensitive watersheds and providing safe streets for the residents of Prior Lake. In addition to the environmental benefits this process has resulted in significant cost savings. These savings are especially important given the fact that the average price per ton of salt has risen from $35/ton to $57/ton or 63% in the last five years. The salt price increases, combined with an additional five miles of streets to plow over the same period of time has increased demands on the operating budget. Through a combination of implementing the anti-icing and pre-wetting programs, the City has limited the increase in the salt materials budget to 20% over that period by decreasing the amount of salt applied per lane mile. Based on the economic pressures and environmental benefits to salt reduction Staff has continued to implement application, equipment and control upgrades over the past two years and has also utilized grant funds for some equipment improvements to defray the expenses for equipment purchases and in return have reduced the amount of salt purchased. Approval of this agenda item would allow staff to complete the remaining winter maintenance improvements to five of the City's snow plow trucks. www.cityofpriorlake.com ".'i ,. rPIwr~(Q~4(4{;l]"Q~QQ>.v'ilfi;)lj: i~5ZA47A~4~i Current Circumstances Request #1: Authority to Expend Funds to Upgrade Sand/salt equipment upgrades and to Expend Funds to Acquire an Underbody Plow The proposed upgrades will provide the following benefits: · Upgraded controls and equipment allow staff to concentrate on operating the plow truck in lieu of operating de-icing equipment . New controllers allow for programming of application equipment prior to the snowfall season and it also allows the pre-programming of application rates based on pavement conditions . New controllers allow staff to record salt use application data which allows supervisory staff to work with operators to make improvements based on the data collected · New controllers and equipment reduce salt amounts provided to the spreader which lowers application rates to 117 pounds per lane mile. This can provided between a 33% and 50% reduction in salt used per event. · Depending on the number of snow removal events the savings are estimated to be between $2,700/year/vehicle and $5,61 O/year/vehicle depending on the number of snow events and the age of the existing equipment. Because the number of snow events varies from winter to winter and the age of the equipment being replaced is variable so will the savings. However staff feels very comfortable that a minimum total savings of $10,800 per year can be achieved and potentially a savings of up $22,440 annually could be achieved. · These cost savings may result in a return on investment of 2 % to 4 % years. The equipment has an estimated life of 15 years. Also included in the equipment upgrades is an underbody plow for Unit #465 (2003 Tandem). The underbody plows allow trucks to plow more effectively with less salt. The City's 2008 Tandem Unit #519 has an underbody plow and is a much more efficient plow vehicle than Unit #465 because the underbody plow can provide down pressure to ice and hard- pack. The Equipment Matrix identifies $48,080 for these equipment upgrades. Staff solicited quotes for the required equipment from vendors in accordance with the City's Purchasing Policy. Attached is a table showing the quotes received for each item. The table below shows only the low quotes from each vendor and supply costs for fleet maintenance installation of the application and equipment and control upgrades for the remaining five snow plow vehicles: in f"t? It _~;' Dj ~:;n Due Vendor Equipment Units Force America 5100 controller 3 conversion, flow meters Tow Master, Salt Special Sanders 4 Inc. Tow Master, Underbody plow Inc. Truck Bodies Road Watch 3 Equipment, Inc. Installation Salt special sanders, 4 weldinq/hvdraulic hoses Total Control EQuipment Upgrades Cost/Unit Lowest Total Cost $5,476.26 $16,428.78 $4,453.69 $17,814.761 $10,491.34 $10,491.34 I $607.49 $1,822.47 $350.00 $1,400.00 I $47,957.35 I Request #2: Vehicle and Equipment Refurbishing The Staff in the Fleet Division perform many different functions aimed at extending the longevity of the vehicles and equipment in the City fleet. The City uses the Jet F/eet and Gas Boy monitoring system to collect data on vehicle history, analysis and statistics. Fleet Division staff depend on this data to design and implement a preventative maintenance schedule. The monitoring system also allows Staff to collect and tracks data on the cost of parts and repairs on each vehicle. By utilizing this information, we are able to perform an aggressive preventative maintenance program resulting in extended lift expectancy of our vehicles and equipment. An effective preventative maintenance program also involves the proper care of equipment, effective operator training and the purchase of quality equipment that is properly sized for its intended use bodies, frames and the exterior of equipment and vehicles need to be refurbished. Each of these elements is a necessary component of a vehicle maintenance program to extend the life expectancy of City vehicles and maintain a positive public image of the City's vehicle fleet and appurtenant equipment. Based on the information the Staff obtained by analyzing the information and data compiled from the tools, procedures and maintenance philosophy described above, the Fleet Department Staff have identified the need to refurbish Unit #546 (1999 one ton truck) and Unit #467 (2000 5 ton dump truck). Unit #546 recently had an engine replaced. The refurbishment proposed for both vehicles includes the following work: . Strip down vehicle (lights, door panels, trim and accessories) · Sand blast frame rails, rear and front ends and dump boxes . Replace under body electrical wires . Replace hydraulic hoses · Inspect/replace exterior components as needed, such as fenders, rocker panels, doors, fuel and hydraulic components, box sides, tailgates and air supply equipment · Conduct necessary body work · Prime/paint vehicle · Color sand and buff vehicle With the refurbishment of the vehicles their useful life and replacement dates will be extended. In the case of the 1999 one ton truck (Unit 546), its replacement date will moved from 2011 to 2015. By refurbishing the 2000 5 ton dump truck (Unit 467) it is expected the City will be able to meet the F< reilin,,',,;, [)()C 15 year Replacement Program life which exceeds industry standards of 10 years for this type of vehicle. The sandblasting, body work, painting and necessary repairs will be conducted by Fleet Maintenance staff in-house. The total cost to refurbish both vehicles is $10,000 and will be completed in accordance with the City Purchase Policy Guidelines. Conclusion The proposed upgrades and refurbishing funds will result in cost savings to taxpayers and reduce impacts to the environment. Staff recommends approval of $47,957.35 for sand/salt equipment upgrades and purchase of an underbody plow and $10,000 for refurbishing vehicles. ISSUES: The City Council may wish to consider the following issues: 5100 Control Eauioment Conversion The current control equipment in the snow plow vehicles is Force America equipment. Therefore, adding components to the existing systems is far less expensive than purchasing a whole new control system at a cost of $23,002 per unit. Purchasing the control conversion directly from Force American which staff have done in the past, eliminates the mark up costs from equipment suppliers which would increase costs by $1,478.74 per unit purchased. The total savings amounts to $4,436.22. Staff also receives excellent one on one customer support from Force America. Salt Soecia/ Sanders (Falls Eauioment) These salt special sanders are only available through Towmaster, Inc. from Falls Equipment. These applicators provided the lowest application rates available and meet our goals established for salt use and provide the easiest conversion because the existing boxes were patterned and built to accept Falls Sanders. The alternative to this sander is a sander unit from Aspen Equipment, which has a minimum application rate of 150 Ibs per lane mile and a cost of $5,000.00. Underbodv Plow The unit to be added is a 10' Falls underbody supplied by Towmaster, Inc. Towmaster provided the lowest cost alternative as shown in the chart above. Road Watch Units These units monitor and report current pavement temperatures which allow staff to make the necessary rate changes based on pavement temperatures. Knowing what the pavement temperature while operating the plows allows staff to save on salt use. Truck Bodies Equipment, Inc. provided the lowest cost alternative. The temperatures are also recorded in the controller and allow supervisors to record data and provide training components on proper application rates based on road surface temperatures. FINANCIAL IMPACT: The 2010 Equipment Matrix in the Capital Improvement Program identifies $48,080 for the purchase of 5 ton winter application upgrades and $10,000 for vehicle and equipment restoration. Should the City Council decide not to proceed with these upgrades and refurbishing funds the impacts would be increased salt use and related expenditures in 2010 and a delay to refurbishing vehicles potentially increasing those costs in the future. ALTERNATIVES: 1. Approve a resolution authorizing the purchase of the proposed equipment and equipment refurbishing funds. 2. Table this agenda item for a specific reason. 3. Deny this agenda item for a specific reason and provide staff with direction. Alternative #1. '- 10 4646 Dakota Street S.E. Prior Lake, MN 55372-1714 RESOLUTION 09-xx A RESOLUTION AUTHORIZING THE PURCHASE OF 5-TON TRUCK WINTER APPLICATION UPGRADES AND FUNDING FOR VEHICLE AND EQUIPMENT REFURBISHING WHEREAS, WHEREAS, WHEREAS, WHEREAS, WHEREAS, WHEREAS, WHEREAS, Motion By: Second By: Each year the City Council adopts an Equipment Replacement Program as part of the Capital Improvement Program (CIP) which acts as a tool for the City Council and staff to provided funds for anticipated equipment acquisitions subject to an objective evaluation and the City Council's final decision; and The Matrix identifies $48,080 for the purchase of 5 ton truck winter application upgrades and $10,000 for vehicle and equipment refurbishing; and The winter application upgrades will reduce salt use there-by reducing operating costs, impacts to the environment and creating a positive return on investment; and The City solicited quotes in accordance with the City's Purchase Policy and received the low quotes shown in the following table: Vendor Equipment Units Cost/Unit Lowest Total I Cost $16,428.781 $17,814.76 I $10.491.34 I $1,822.47 I $1,400.00 I $47,957.35 I Force America 5100 conversion com Q.lete , flow meters Salt Special Sanders Underbody Plow Road Watch remote temp sensor Salt special sanders, weldinQ/hvdraulic hoses Total Control Equipment Upgrades ;and 3 4 1 3 $5,476.26 $4.453.69 $10.491.34 $607.49 $350.00 Tow Master, Inc. I Tow Master, Inc. Truck Bodies EQuil?ment, Inc. Installation 4 Staff is authorized to purchase 5 ton truck winter application upgrades at a cost not to exceed $47,957.35; and The funding allocated for refurbishing will be utilized on Unit #546 and Unit #467; and Staff is authorized to expend $10,000 to refurbish Unit #546 and Unit #467. 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. Funds are to be drawn from the Equipment Replacement Fund and Matrix, account #410-43100- 580 for an amount not to exceed $57.957.35. 3. Expenditures in the amount of $16,428.78 (Force America), $28,306.10 (Tow Master Inc.), $1,822.47 (TBEI), $1,400 for equipment installation by City Staff and $10,000 for refurbishing by City Staff are approved. R\Council\2010 Agenda Reports\01 04 10\purchase an~~f&.~I)W1ndoc Phone 952.447.9800 / Fax 952.447.4245 PASSED AND ADOPTED THIS 4th DAY OF JANUARY 2010. YES I Myser I Hedberg I Erickson I Keeney I Millar Myser HedberQ Erickson Keeney _ Millar Frank Boyles, City Manager R:\Council\2010 Agenda Reports\01 04 10\purchase and refurbish equipment resolution.doc NO EQUIPMENT NEED ANALYSIS Replacement Sanders for: Equipment:Unit #466, 2000 Sterling 5 ton Dump; 65,856 miles Unit #467, 2000 Sterling 5 ton Dump; 63,631 miles Unit #469, 2001 Sterling 5 ton Dump; 55,706 miles Unit #518, 2002 Sterling 5 ton Dump; 63,264 miles I. Refurbishina Analvsis: The existing sanders and controllers can not be upgraded to allow pre-programming application rates, do not have the ability to record salt use application data and do not have the ability to reduce salt application reduction. Therefore, refurbishing this equipment to meet its intended use is not possible. R:\Council\2010 Agenda Reports\OI 04 10\Purchase and refurbish EQUIPMENT NEED ANALYSIS for Sander Upgrades. doc Created on 1: II. Lease/RentaIOotions: This type of equipment is not available for lease or rental. III. Zero Value Ooeration: Based on the performance that we want from the upgraded sanders and controllers the existing equipment does not have the technology to meet these criteria. The City could utilize the sanders to the end of their useful life however that would mean savings associated with salt application rates could not be realized. IV. Alternative Fuel Analvsis: N/A V. Eauioment Utilization: This specialized equipment can be utilized for road salt application only. There are no other functions that these sanders can be used for. By not replacing this equipment would result in over use of ice and snow removal chemicals. VI. Eauioment Partnershio: Because the City utilized this equipment during peak times and the controllers are a permanent fixture on the trucks, it is not viable to partner with another agency on this equipment. VII. Used Eauioment Ootions: Because this type of equipment is specialized and relatively new to the market (4 to 5 years), used equipment is not available. R:\Council\201O Agenda Reports\OI 04 10IPurchase and refurbish EQUIPMENT NEED ANALYSIS for Sander Upgrades.doc Created on 1: RIO~ ~~~ ~ ~1..vNESo1~ Report Related to Vehicle nd Equipment Purchasing !Jthorizing the Purchase of Five Ton ;~uck Winter Application Upgrades and ~Funds fO~~f~~~~h~~: Equipment E S 0 ~rfriedges, Parks and Fleet Maintenance Supervisor R.. 10", . ~r Agenda Overview · Review Equipment Replacement Program . Review of Vehicle and Equipment Acquisition Strategies · Five Ton Truck Winter Application Upgrades · Vehicle and Equipment Refurbishing . Issues and Financial Impact . Alternatives and Questions IIIIIIII" ESO<\. ~ Equipment Replacement Program ~r tJart~ents ~... Vehicle and Equipment R104 Acquisition Strategies Vehicle and Equipment Refurbishing Lease and ~. Rp~1 ,Options . iit1~cavators ~ ck Hoes ihg Machines .Skl Loaders .Spec &!Ity ptn:eWith 1'\. I" ESO Equipment Zero Value RIO I Operation :.I" ii Alternative Fuels R.IO . ~.. saline Blend of 10% Ethanol esel Fuel Blend of 5% Bio-Diesel . Goa~o Utilize a Blend of 10% Bio-Diesel for ffiwwwwweQ.10;; E~Ye tC<,le Purchases Include Research on Fuel ES "omy, Alternative Fuels for . nvironmentally Sensitive Options. Vehicle and Equipment Scheduling and Operations Procedures R/O~, . . Operations Foremen and Supervisors communicate their respective equipment needs for their departments daily . Rental equipment Is utilized only as a necessity I .\Public Works staff continue to work on ~+'mlnlmIZlng equipment Idling and track equipment Idling through data acquisition ~"rhese practices compliment the need for ESO<\ I additional equipment purchases and extend their life expectancies Equipment Partnerships RI~ Join .~. 58 with Shakopee Joint Purchase with Communities aka on Sioux Community of Savage and Bumsvllle Used VS. New Winter Application Upgrades ,.", 1'-__< :1'~ ..1II!1'\l. ""; - L Vehicle and Equipment Refurbishing Issues and Financial Impact ~IO~ . 2010 Equipment Matrix tlfles $48,080 for the five to winter application up des The 10 Equipment Matrix Identlfle.s $10,000 for the i+***@*~.'lIlcle And equipment ..''U+++,. ",.110n or refurbishing am elay ofthese two Items ~1IId~ontlnue overuse of E 5 ~t \nd decrease the life . expectancy of fleet vehicles The total cost for the five ton winter application upgrades amounts to; $47,957.34 which Is $122.66 less than was budgeted . The total amount of $10,000 would be allocated for the equipment refurbishing program RI 04(~ K QUESTIONS? I iII"'" ;\ ~" ESO .