HomeMy WebLinkAbout5F - Replacement of a Tiller and Purchase of Brine Tanks
MEETING DATE:
AGENDA #:
PREPARED BY:
PRESENTER:
AGENDA ITEM:
DISCUSSION:
4646 Dakota Street SE
Prior Lake, MN 55372
CITY COUNCIL AGENDA REPORT
October 18th,2010
SF
AI Friedges, Parks and Fleet Supervisor
AI Friedges
Consider Approval of a Resolution Authorizing the Replacement of a
1993 Tiller and the Purchase Two Brine Production Tanks
Introduction
The purpose of this agenda is to seek City Council approval for the
replacement and purchase of the above listed equipment.
Historv
As part of the Capital Improvement Program (C.I.P.) the City Council
adopts an Equipment Replacement Plan ("Plan") each year. The purpose
of this Plan is to identify and program the schedule for and cost of
equipment and vehicles that need to be replaced due to age or wear, or for
additional equipment that needs to be purchased due to growth. Actual
expenditures for all equipment identified in the Plan are subject to Council
approval. For 2010 the Plan programmed:
1. $7,868.00 to replace a tractor mounted tiller ( Parks Department);
and
2. $10,709.00 to purchase brine production equipment (Street
Department).
Annually, City staff evaluates any vehicles that can have their useful lives
extended. As part of the 2011-2015 CIP, City Staff recommended that five
major pieces of equipment scheduled for replacement in 2010 be extended
out to future years based on current condition and use. The tiller and Brine
Production Tanks were not extended based on current need and condition.
The tiller is 17 years old, has been subjected to heavy use and is worn out.
Projected repairs are more costly than the purchase of a new tiller.
The acquisition of (2) two Brine Production Tanks will offer additional
storage capacity for the staff to mix and store brine before a snow event
occurs.
Current Circumstances
Based on the condition, current need and potential costly repairs, City staff
is recommending the replacement of the 1993 Sovema Tractor Mounted
tiller and the purchase of two Brine Production Tanks. Each equipment
need is highlighted in further detail below:
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1993 Sovema Tractor Mounted Tiller
The Parks Division currently utilizes this tiller for seed bed preparation,
noxious weed control, and native restoration projects. Staff recommends
the trade-in of this piece of equipment and proposes to purchase a new
tiller.
The existing 1993 Sovema tractor Mounted Tiller is 17 years old and
requires $4,217.70 of repairs in the near future to continue use. The
repairlrefurbishing costs of the existing tiller exceed the costs of a new
tiller.
In accordance with the City's purchasing policy, quotes were solicited from
three vendors. The low quote amount of $3,633.75 was submitted by
Sharber and Sons. Staff is recommending this vendor. The quotes were
received as follows:
Price Comparison for a Tractor Mounted Tiller
Make I Model
Sharber &
Sons
RT A 35 Land
Pride
$3,600.00
$200.00
$3,400.00
$233.75
$3,633.75
Price
Trade-in Value
I Sub-Total
I Tax
I Total
Lano
Equipment
RT A 35 Land
Pride
$4,229.00
$800.00
$3,429.00
$235.74
$3,664.74
Wahls
Enterprises
6582 Farm
King
$5,100.00
$800.00 I
$4,300.00 I
$295.63 I
$4,595.63 I
The total cost for the tiller is $3,633.75. The Equipment Matrix has
$7,868.00 programmed for this purchase.
Two Brine Production Tanks
City staff has experienced excellent results from both anti-icing and pre-wet
programs related to snow and ice control. Anti-icing allows faster return to
black pavement; reduction of products applied to roadways and provides
better traction for the loaders during snow removal operations. The pre-wet
program allows staff to speed up the melting process of salt and keeps the
product in the middle of the road. Additionally, the anti-icing pre-wet
program aids in reduction of salt/sand applications and assists with
preventing the snow to bond to city streets prior to the snow removal
process. This entire program provides more effective and environmentally
friendly snow and ice control.
Currently we do not have sufficient capacity to store our anti-icing and pre-
wet solutions. The lack of storage means that staff has to stop and
interrupt the snow removal process to re-mix additional quantities of the
anti-icing pre-wet solutions. The re-mixing process takes approximately two
hours. The purchase of additional Brine Production Tanks will enable staff
to mix and store enough product to cover an entire snow event.
In accordance with City purchasing policy, quotes to purchase two (2)
additional Brine Production Tanks were solicited from two vendors. The low
quote of $9,199.97 was submitted by Plastic Mart. Staff is recommending
this vendor. The quotes were received as follows:
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Price Comparison for Two Brine Production Tanks
I
I 10,000 Gallon
I 5,000 Gallon
I Sub-Total
I Tax
I Total
Plastic Mart
$6,059.97
$3,139.97
$9,199.94
Included
$9,199.94
Indelco Plastics I
$9,355.03 I
$4,803.36 I
$14,158.39 I
$973.40 I
$15,131.791
A concrete slab, plumbing parts, a pump and a salometer are needed to
install the additional tanks with an estimated cost not to exceed $1,500.00.
The total cost for the tanks and related equipment (including installation) is
$10,699.94. The Equipment Matrix has $10,709.00 programmed for these
purchases.
Conclusion
Based on the Equipment Need Analysis, Staff is recommending the
purchase of a new RTA35 Land Pride Tractor Mounted Tiller and Two
Brine Production Tanks and appurtenant equipment from the above- listed,
low quote vendors.
ISSUES:
The attached Needs Analysis analyzes the tiller options.
FINANCIAL
IMPACT:
The proposed storage tanks are new equipment. The estimated life
expectancy of these tanks is 50 years. Currently the staff that operate the
mixing facilities run a collector street tandem route. Pulling a driver in for 2
hours to re-mix the solution results in delays in plowing of routes and
additional overtime costs. The additional tanks will in a typical year reduce
staff costs by about $1,000 per year not including service delays and
potential overtime. The payback on this equipment is about 10 years.
The 2010 Equipment Matrix portion of the C.I.P. has $18,577.00
programmed for the purchase of this equipment as outlined in this report.
The total cost of the recommended equipment is $14,333.69 which is
$4,243.31 less than originally programmed. The funds will be drawn from
the Revolving Equipment Fund.
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The alternatives are as follows:
1. Approve a resolution authorizing the purchase of a tiller, the trade-in of
the City's 17 year old 1993 Sovema Tractor Mounted Tiller and the
purchase of one (1) 10,000 gallon and one (1) 5,000 gallon Brine
Production Tanks at a cost not to exceed $14,333.69.
2. Defer action on the replacement of the tiller and lor purchase of two (2)
Brine Replacement Tanks for a specific reason and until a date certain.
3. Deny all or a portion of this agenda item for a specific reason and
provide staff with direction.
Alternative #1
AL TERNATIVES:
4646 Dakota Street SE
Prior Lake, MN 55372
RESOLUTION 10-xxx
A RESOLUTION AUTHORIZING THE PURCHASE OF A TILLER TO REPLACE A 1993
TILLER AND THE PURCHASE OF TWO BRINE PRODUCTION TANKS
Motion By:
Second By:
WHEREAS, Each year the City Council adopts an Equipment Replacement Plan as part of
the Capital Improvement Program (CIP); and
WHEREAS, The 2010 Equipment Replacement Plan contemplates the purchase of:
1. One new tractor mounted tiller to replace a 1993 tractor mounted tiller
that has exceeded its useful life
2. Two (2) Brine Storage Tanks, one 10,000 gallon tank and one 5,000
gallon tank;
WHEREAS, The 2010 Equipment Replacement Plan programmed $ 7,868 for a tractor
mounted tiller (Parks Department); and $10,709.00 for the purchase of two (2)
Brine Storage Tanks (Street Department); and
WHEREAS, A detailed needs and financial analysis was prepared for the replacement of the
1993 tractor mounted tiller and the analysis is included in the agenda report; and
WHEREAS, Quotes were solicited and received by the City from multiple vendors to ensure
the lowest price; and
WHEREAS, Staff is authorized to trade-in one currently owned 1993 Sovema Tractor
Mounted Tiller and purchase one RT A 35 Land Pride Tractor Mounted Tiller for
a cost not to exceed $3,633.75; and
WHEREAS, Staff is authorized to purchase two brine production tanks and related
equipment for a cost not to exceed $10,699.94.
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 purchase two (2) Brine Storage Tanks from Plastic Mart for $9,199.94
and $1,500.00 for required installation for a total cost not to exceed $10,699.94.
3. Staff is authorized to purchase one (1) RTA 35 Land Pride Tractor Mounted Tiller from
Sharber and Son's for a cost not to exceed $3,633.75
4. Staff is authorized to trade in one 1993 Sovema Tractor Mounted Tiller for a value of $200.
5. Funds will be drawn from the Revolving Equipment Fund. A total of $3,633.75 from account
#410-45200-580 and a total of $10,699.94 from account #410-43100-580.
G:\Agenda Reports and Resolutions\2010\ 10 18\Tiller & Tanks Replacement Resolution
PASSED AND ADOPTED THIS 18TH DAY OF OCTOBER, 2010.
YES
NO
I Myser
Erickson
Hedber~
Keenev
I Millar
Myser
Erickson
Hedber~
Keenev
Millar
Frank Boyles, City Manager
G:\Agenda Reports and Resolutions\2010\10 18\Tiller & Tanks Replacement Resolution
2
EQUIPMENT NEED ANALYSIS
Equipment: Sovema Tiller
Year: 1993 Mileage/Hours: Not Metered
I. Refurbishina Analvsis:
The 1993 Sovema Tractor Mounted Tiller is 17 years old and needs $4,217.70 in repairs due
to labor and parts for a tiller of that age. The purchase of a new tiller is $3,633.75. Due to
current condition and age refurbishing is not cost effective.
II. Lease/Rental Ootions:
The City retains this type of equipment for 15 plus years. If the City entered into a lease
option on this tiller, it would result in a long term lease. Long term leases cost more than a
purchase.
The tiller is utilized approximately 15 times per year. Rental tillers of this size cost $150.00
per day plus staff mobilization to pick up and return the tiller. The City is limited based on the
available tractors we have as to the size of tiller we can rent. The annual cost of renting
equipment is approximately $3,OOO/year making renting not a cost effective option.
G :\Agendas and Resolutions\20 I 0\1 0 18\Equipment Needs Analysis Tractor Mounted Tiller
III. Zero Value Ooeration:
This tiller has exceeded its life expectancy for its intended purpose. Repairs of $4,217.70 are
needed to keep this piece of equipment operational. At this time the City will receive a trade-
in value of $200.00.
IV. Alternative Fuel Analvsis:
The proposed tiller is an attachment and is not equipped with an engine.
V. Eauioment Utilization:
The tiller will be utilized by all City of Prior Lake departments that require seed bed
preparation, noxious weed control, turf area and native plant restoration. In order to eliminate
the need for this equipment the City would need to:
a) Eliminate the in-house services identified above~
b) Rent; or
c) Borrow or partner with another entity.
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 affected.
VI. Eauioment Partnershio:
The proposed tiller will be identified on our Equipment Sharing Program with other public
entities. The City has contacted surrounding entities and the communities contacted
currently own their own tiller; resulting in partnerships not being an option.
VII. Used Eauioment Ootions:
No used tillers were located"
VIII. Best Cost Ootion:
Based on the available options Staff has completed the following financial analysis to determine the most cost
effective replacement option:
Option
Initial
Cost
Trade
In
PV
Future
Trade
$200
Life
Expect
Annual
Maint
Annual
RR
(%)
2
Total
Annual
Cost
$ 368 I
I
$414 I
$2,488 I
I New $3,633.75
I Used* NA
I Rebuild $4,217.70 $0 $200 17 $150 2
I Rent $0 $200 $0 17 $2,520** 2
I *Low and Moderate used tillers that fit the existing City tractors are not available
$200
17
$150
* * Based on 15 uses per year with seasonal labor for pick up and return
Recommendation: The lowest cost replacement option is a new tiller due to the labor and parts cost to
rebuild the existing tiller,
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