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Home My WebLink About01 26 2015 Work Session Report 4646 Dakota Street SE Prior Lake, MN 55372 CITY COUNCIL WORK SESSION REPORT MEETING DATE: JANUARY 26, 2015 AGENDA #: 1A-1C PREPARED BY: FRANK BOYLES, CITY MANAGER PRESENTED BY: VARIOUS AGENDA ITEM: JANUARY 26, 2015 WORK SESSION TOPICS DISCUSSION: Tonight’s work session will focus on the following topics: I. Captain Jack’s Rebuild II. Fleet Replacement Rating System III. SMSC Agreement I. Captain Jacks Rebuild – A proposal is being considered which would result in the complete demolition and reconstruction of the existing Captain Jack’s Res- taurant. The new business is being referred to as “Prior Lake Shore Club and Ma- rina”. Attached for information is a report from Jeff Matzke on the topic together with a description of the new business and sketches of the proposed building. The purpose of this agenda item is to familiarize the Council with it and provide the opportunity for questions and discussions. II. Fleet Replacement Rating System – The Prior Lake City Council has been aggressive at encouraging the staff to get the most out of City equipment, and financially plan for their replacement. Over the years, the staff and City Council have developed a standardized approach for each replacement which includes analysis of a number of alternate ways to replace equipment. Examples include rental, refurbishment, joint purchase and much more. Staff will review the existing approach with the City Council as a refresher. We have started using a new ap- proach developed by Dakota County which uses considerable more objective cri- teria for predicting replacement schedules. The staff’s intent is to review the new approach with the City Council to see if there is support for its use. Attached is information regarding the existing and proposed system for information purposes. III. SMSC Agreement – Some progress has been made on this agreement but questions remain. Tribal Administrator Bill Rudnicki has suggested that a better approach may be to have a negotiation team so representatives from the City Council and the Tribal Council negotiate directly with one another. The materials for this discussion are included in your agenda packet. Work Session Agenda Item 1 A Captain ,jack's Rebuild (Electronic pages 2- 12) O� PRION ti U 4646 Dakota Street SE Prior Lake,MN 55372 :�Ijzsol CITY COUNCIL WORK SESSION REPORT MEETING DATE: JANUARY 26, 2015 AGENDA#: WORK SESSION PREPARED BY: JEFF MATZKE, PLANNER AGENDA ITEM: PRIOR LAKE SHORE CLUB & MARINA PRESENTATION DISCUSSION: Introduction The purpose of this Work Session is to allow the Waterstreet Restaurants Group, to present their proposed redevelopment project of the existing Captain Jack's property. They would like input from the City Council as a preview to their formal zoning public hearing process. History The Waterstreet Restaurants Group has a signed purchase agreement on the Captain Jack's restaurant site that includes the existing restaurant site as well as the site of an existing residential home across the street from the restaurant. Park- ing along the streets in the immediate area surrounding the restaurant site has been challenging in the past during the high summer season and when major events are held. The restaurant is currently closed for business pending negotia- tions for this redevelopment. Current Circumstances The developer will present their proposed redevelopment project for the existing site. The plans indicate a rebuilding of the existing restaurant building within its existing footprint with a few additions to improve the efficiency of the floor plan. The new building will be raised in elevation above the floodplain level of Prior Lake. In addition, the developer proposes to remove the house at 3931 Green Heights Trail (Lot 7) and construct a 32-34 stall parking area, targeted primarily for em- ployees and patrons of the marina. (The developer wishes to possibly purchase the adjacent residential home at 3935 Green Heights Trail to further expand off- street parking lot). Representatives will describe the project, restaurant business model, timeline, etc. Future City actions will include an Ordinance Amendment to allow expansion of the nonconforming restaurant use on the site and across the street(parking area). A public hearing has been scheduled before the Planning Commission on Mon- day, February 2. Conclusion Waterstreet Restaurants Group is seeking input/questions from the City Council in order to continue to finalize their redevelopment plans and business venture for the site. ISSUES: City Council feedback is desired by the developer, whether positive or negative to the redevelopment project, which will proceed to a public hearing. FINANCIAL Potential tax base increase for the improved property. IMPACT: ALTERNATIVES: Discussion Only RECOMMENDED N/A MOTION: ATTACHMENTS: 1. Shore Club & Marina Development Plans 2. Project Narrative Prior a Shore Club & Marina Mission Statement The Shore Club provides guests with an experience unlike one you would find in a National Chain Restaurant. Caring for each and every need of our guests,The Shore Club takes the approach that we treat everyone as family.We only hire happy people that share our philosophy; "Have Fun,Treat People Right,Serve Great Food and Make Money". Concept Clarity &Positioning The Shore Club will be a great addition to Prior Lake.A warm,inviting place where the staff knows your name,the food is fresh and the service is genuine.To truly feel welcome and cared for is what all patrons long for.The Shore Club is a bright and lively neighborhood spot with high energy that will surely become a family favorite. Support Strategy 1) All of our food is made fresh to order using only the highest quality ingredients. Signature items will include appetizers such as,Shrimp and Lobster Pops,Twice cooked Buffalo Wings,Maryland Crab Cakes and Marinated Steak Quesadillas. Maine Lobster Rolls,Poor Boy Sandwiches,Gourmet Burgers and a Grilled Shrimp Club Sandwich will highlight our Sandwich selection.We will offer fresh made Pizza and Entrees including Pastas,Steak and Chicken dishes.The Specials program will include Fish Fry's on Friday and Prime Rib on Saturday nights.The Wharf will house a second Kitchen offering a wide variety of Sandwiches,Burgers,Tacos and Appetizers.A weekend Brunch will have items such as,Prime Rib Hash with Poached Eggs,Huevos Rancheros,Crab&Spinach Benedict and French Toast that will,undoubtedly,become a favorite.Many additional soups,unique salads, appetizers,and a fun kids menu will round out our offerings.All menu items will be available to dine in,carry out and boat ready. 2) The preparation of the menu items will be carried out bti a well-trained kitchen team.The consistency and quality of products will evidence the skill and pride in which the kitchen staff performs their culinary talents. 3) The Beverage program will play an integral part of the experience.A wide selection of Beer including local Micro brews will be offered.A well rounded wine selection and specialty cocktails will be make The Shore Club a great place to hang out and enjoy life. 4) The guests initial introduction to,and the impression of The Shore Club will be greatly influenced by the staff.A warm and friendly welcome,a sincere smile and genuine care for each and every guest will set the tone for the entire experience.The serving staff will be friendly and have a vast knowledge in order to be qualified to discuss food ingredients,preparation techniques and tour guide guests through the menu in order to have the best experience possible.The enthusiasm and knowledge of the bartending staff will contribute greatly to the personality of The Shore Club. Our bartenders eyes are always fixed on the bar top and/or the guests eyes.Our guests don't ask us for a drink,we ask them. The management team is always in sight,always involved,always upbeat and always one step ahead.Our managers speak to every guest,everyday no exceptions. All team members including managers,upon being hired,must sign and agree to a "Happiness Contract"that states they will smile be happy,have energy,have fun and always do the right thing during every shift or they will be asked to leave. 5) We believe that our guests are truly that,"Guests".We start outside where it is always clean,well lit and free from snow,ice and garbage.We make sure our guests feel at home through friendliness and clear communication.We make sure our guests have good lighting,the right music at the right level,the perfect temperature and comfortable seating.We offer great food for a fair price.Kids will alwaijs feel welcome and be kept entertained.All of our guests are thanked and asked to join us again.We strive to provide an experience that will make our guests tell everyone they meet,"You have to go there.' Phgsiasl Description The best way to describe The Prior Lake Shore Club&Marina is;a lake side neighborhood spot that is comfortable and relaxing,colorful and stylish while energetic and exciting.A lighthouse inspired entry will greet all guests as them enter The Shore Club.The staff and Management will be casually dressed and always well groomed. Lighting will be fused and warm.Music will be current and at a level that makes it easy to carry on a conversation.Hirdefinition TV's will be easily viewed from anywhere in the place featuring sporting events.Flooring will be made from reclaimed wood and stylish tile. Windows will stretch from wall to wall featuring panoramic views of beautiful Prior Lake. Three levels of outdoor decks will be the best seats in town on a warm summer night.Our Marina operation will offer approximately 80 Boat Slips of which 60+will be seasonally rented with the remaining Slips open for In&Out docking for Restaurant Patrons.A future parking expansion will be located across the street in an effort to alleviate neighborhood parking issues.The Shore Club will be a family friendly,inviting and comfortable destination for all seasons. Marketing&Events The bulk of our marketing and promotions will occur within the four walls of The Shore Club.During the opening month we will cast a wider net to introduce the concept and create curiosity.The density of businesses in the area creates an opportunity for cross promotions.We don't feel we need to"Giveaway the house"to entice customer loyalty. Fair pricing,a competitive happy hour and unique promotions will draw guests in and our great service and quality products will keep them coming back.A unique and creative web site will act as our cyber newsletter and information center.Other avenues include; interior signage,table tents,contests,direct mail,flyers,Facebook,Twitter,viral marketing, local newspaper,coupons,school programs,community involvement and being members of the Chamber of Commerce. Schools and Education play a big role in our focus for advertising and contributions to the community. We plan on carrying on the long tradition of participating in and potentially hosting many local events including;Parades,Festivals,Classic Car Shows,Boat Shows,Fishing Tournaments,Water Sports Events and Winter Festivities. Our Neighbors,Our Pledge The Prior Lake Shore Club&Marina sits in the heart of a beautiful residential community. We are proud to bring over 100 jobs in the community.We will operate our Restaurant with the utmost respect for our Neighbors.We will control noise levels,light levels,crowd control,cleanliness and goodwill.We will always be available to discuss any issues that arise which may concern our neighbors.We will follow all noise ordinances which include no amplified music outside after 10 p.m.Our proposed Hours of Operation will be; Monday—Wednesday-11a.m.-11 p.m. Thursday-Friday-11a.m.-1 a.m. Saturday 10a.m.-1 am. Sunday--10a.m.r 11 p.m. �Li $ m sry b � H � Y mLu J 'oda € s � w � °Qa M W 4 ga Q 7 `o TO $ ,`tijc� gaa O 0 J L Q (LX (LWoyo T', g f48% � <UU xE $ I II II II II \1 I I II II II II II II II ii II II II II II II II II Z II O II F II jjj , II II p€ g F P E a k Ii11i ft 119 3 ml Pik, II § 11 ,II �I I I SII II •I I II I� ..Ili •1 I •II O II F I U . ••II F I Q J I r x r F 0.0.tp YqFF I I n ARCHITECTURAL CONSORTIUM L.L.C. 801 NOMI—.—I.Saha 220 —1—3. 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Project No. CAP20248 Work Session Agenda. Item 1 B ]Fleet Replacement Rating System (Electronic pages 13-20) O� PR12 EQUIPMENT PURCHASE ANALYSIS u 4646 Dakota Street SE Prior Lake, MN 55372 #789 LOADER W/ PLOW &WING M�Nrveso�P uryW� ■ l� niw tl . y The Public Works Maintenance Department utilizes two loaders year round in the parks, streets and utility maintenance areas.The loader being replaced is a 2001 Cat 938G,which is a 180 H.P., 29,650-pound machine. The second loader is a 2007 Case Model 721 E which is a 183 H.P. 30,644-pound machine. The duties include:snow plowing of the City's Streets, brine/salt mixing and loading;excavation for trail construction and large street repairs; operating the milling machine; replacement of materials into excavations for water main and sewer repairs;with other lifting attachments docks are installed,sewer structures are set into place; and trees are planted with a tree spade attachment. A detailed eight step analysis is completed for the purchase of all replacement or new equipment. The analysis below summarizes the results of this process. I. REFURBISHING ANALYSIS Due to the age of the 2001 938G Loader, more extensive repairs may be expected to keep this piece of equipment a viable tool for the City.The first three repairs listed below totaling $32,797 would be recommended to keep this piece of equipment in operation. As it continues to age the risk for additional repairs will increase. A major potential repair would be the engine and transmission. These repairs would potentially extend the life of the machine by+/-3 years. Costs included in this table do not include normal maintenance or repair on a piece of equipment of this age. REFURBISHING COSTS Articulation Joint Repair $10,037 ......... .. .........._._... ......... ............................................................ ........ .................. Counterweight Replacement $4,600 ...........................-.................................................................................................................... .........._....................................................................... Re-bushing Loader Arms $18,160 TOTAL 2014 REFURBISHING $32,797 Engine and Transmission Repair $25,644 TOTAL POTENTIAL REFURBISHING $58,441 II. LEASE/RENTAL OPTIONS After extensive research,a rental loader was found for a cost of$7,250 per month, but this is for a bucket only, no plow or wing are available. Because this unit covers 25%of the City's cul-de-sacs during snow events and is key for snow removal it is essential to winter operations. Assuming this vehicle would need to be on hand for a minimum of 6 months out of the year the total rental cost would be$43,500 annually or$565,000+over a 13 year period. III. ZERO VALUE OPERATIONS This Loader is at its life expectancy for its intended purpose and needs significant refurbishing to remain a reliable and safe unit in the fleet. There is significant risk in not replacing or refurbishing this piece of equipment. As noted above,this unit services 25%of the City's cul-de-sacs. If this unit needs repairs during the winter months,there is not a reliable rental option leaving stress on the other equipment and a decrease in service levels. IV. ALTERNATIVE FUEL ANALYSIS The proposed loader will have a tier 4 engine which is the cleanest burning and fuel efficient engine available at this time for this type of equipment. V. EQUIPMENT UTILIZATION Unit#789 is a piece of equipment utilized year round by the Street, Utilities and Parks Divisions. In the winter, the loader is key to winter operations as it covers a plow route that includes 47 cul-de-sacs or 25%. In addition this loader is one of two machines used to load snow during removal/hauling operations(i.e.cleaning centers of cul-de-sacs).This Loader is 13 years old and has accumulated 6,010 hours, The use of this loader is optimized across divisions. VI. EQUIPMENT PARTNERSHIP This vehicle is shared by all divisions and is used year round, Partnerships with other organizations is not a viable options VII. USED EQUIPMENT OPTIONS There were no slightly used Loaders in a 500 mile radius. VIII. COST ANALYSIS When completing the cost analysis we looked at the life cycle cost of the machines that includes the purchase price, residual value,fuel efficiency, availability of parts, equipment features, and safety. Staff demoed three loaders to become familiar with the available features and operational differences. Based on the considerations above,two were the focus of this report;the Case 721 F and the Caterpillar 938G. The differences are detailed below. A. PURCHASE PRICE The State Cooperative Purchasing Venture(CPV) has prepared specifications and solicited bids for various sizes of front end,wheel type loaders. The CPV is a multiple award process that allows local agencies to choose which vendor and machine it wants based on its specific needs. In the matrix below,each of the loaders are the lowest responsible bid within their particular category and could be purchased in compliance with state statute. The size of loader we investigated was in the 170-180 H.P., 3.5 cubic yard bucket range, which is similar in size and power to the existing loader. Within this range, each of the machines has different features that impact the price. The bids and some a summary of the specifications for the three loaders are listed as follows: Local Vendor Ziegler RDO Titan Machinery Manufacturer Caterpillar John Deere Case Model 938K Loader w/ 624K Loader w/ 721 F Loader w/ low and wing plow and wing plow and win Weight w/octr.wt. 35,104 34,134 31,510 Rec.counterweight 1,586 NA 1,225 Bucket size 3.5 yd 3.5 yd 3.5 yd Horsepower 173 186 179 Brakes Inboard Disk Inboard Disk Outboard Disk Planetaries Inboard Inboard Outboard Transmission Hydrostatic with Torque Converter Torque Converter Creep Function Delivery 1-180 Das 60-90 Das 30-260 Days Purchase Price $223,101 $208, 787 $197,030 Trade $60,000 $47,000 $62,850 Total Cost $163,101 $161,787 $134,180 B. Future Trade-in Value The sales price and number of particular models for sale of used equipment is a great indicator of future trade value. For example, there were 7, 1999-2001 Case 721 loaders listed in the Rock& Dirt Auction Results database, a nationwide auction result and sale web site. The average price for the Case was$30,000. The Cat 938, a similar size machine had 54 loaders listed for the same search parameters, with an average sale price of$42,000. This is a difference of approximately $12,000. It should be noted that these machines do not typically include the plow and wing. These results are indicative of several similar databases and general knowledge of the industry. In addition the City has experienced similar differences in the residual value of these manufactures. In 2007 the City traded a Case 621B for the acquisition of a Case 7-21E. The residual value of this piece of equipment ranged from $30,000 to$37,000. In contrast, the residual value on the Cat we are currently considering trading ranged from$47,000 to$62,850. Both of these machines were comparable in class. C. Annual Maintenance Costs The City currently owns and has maintained repair records on both a 2005 Case and 2001 Caterpillar loader. The fleet management database reports material, labor and any contract work completed on any of the City's vehicles. The Case loader has been more prone to repairs even though it is newer and experienced less use. The annual maintenance cost is$4,513 which equates to$11.34 per hour of operation. In contrast the older Cat has been the loader of choice by the operators due to functionalities enumerated below. Even with the higher use,the annual maintenance cost is$3,029 or$5.92 per hour of operation. D. Fuel Efficiency Fuel Efficiency was considered. The City currently operates both a Case and Caterpillar similar to the models being considered for purchase. Based on our history of fuel usage the Case has a 0.27 hours per gallon fuel use where the CAT has a 0.31 hours per gallon fuel use. Over the life of this piece of equipment this equates to less than $200. E. Availability of Parts Availability of parts can be essential for key equipment to minimize downtime during repairs. The City has experience with both Cat and Case. Ziegler/Cat has 24-hour parts and service availability allowing repairs of the loader in a relatively short time. Titan/Case does not keep an inventory of parts at their local dealer. Parts are shipped from various warehouses with the City paying expediting charges if the repair is time sensitive. Generally parts can take around a week to acquire. F. Equipment Features There are equipment features that may not equate directly to a calculated cost differential. However, these features should be considered as they add incremental efficiencies in daily operation, reduction of safety risks, indirect cost reductions and increase productivity of staff. Operational Differences • The Cat has a much larger and heavier built transmission which extends the life. • The Cat has a hydraulic pump dedicated to steering, not part of the loader lift hydraulics, meaning the steering is much more responsive. • The Cat has independent control of the ground speed and engine RPM or the Creep Function. This allows for better control of the machine plowing cul-de-sacs. It also allows for slower, steadier control of the milling machine significantly reducing wear and replacement of the grinding teeth and reducing the potential for more significant damage to the drum. Case does not have this feature as an option. John Deere does, however it significantly increased the price. • The Cat is heavier and has better weight distribution which provides for more steady and stable operations. This equates to less wheel slippage reducing wear on tires and drive train. This is particularly important when pushing snow around cul-de-sacs. • All machines have a locking front differential that aids in pushing snow around cul-de-sacs. The Cat is equipped with cab mounted,joystick control of this function allowing it to be carried out during operations. The Case front differential is locked manually requiring the machine to be stopped. Maintenance Considerations • The Cat has inboard, totally enclosed, mounted planetaries and brakes versus outboard on the Case. Inboard will last much longer, not being exposed to the elements, dirt, grit, and salt. • All machines have a diesel particulate filter which is costly to replace. The Cat is rated for 8,000 hours of operation whereas the Case is rated for 4,000 hours. • The Cat has ground level sight gauges for transmission oil, engine oil, engine coolant, air filter, and hydraulic oil which allows easy access for daily operator checking. • The Cat engine compartment cover hydraulics lifts up allowing easier access for routine and major maintenance • The Cat radiator and A/C core fold out for superior access for cleaning and service. • The entire Cat loader is designed and constructed by Cat, while the Case has components such as the transmission and bucket built by other vendors. Safety Features • The sightlines are the best on the Cat. When navigating around cars during plowing events this is extremely important. • The A/C unit is built into the engine area on the Cat, while the Case has it mounted immediately behind the operator on top of the engine compartment, hindering sightlines. • The steps, handrails, and grab bars are designed for easier entry on the Cat. When an operator goes up and down 15-20 times per day,this is an important safety feature to prevent a fall. • The Cat has better ergonomics having a roomier cab, a seat with more adjustments, larger, easier to read gauges, and a door that opens 1800 all lead to less fatigue, for an operator who is in this machine 10-12 hours many times during winter operations. G. Annual Cost Summary Present Initial Cost Value Annual Annual Includes Future Life Maintenance Interest Equipment Equipment Trade $ Trade $ (Years) Cost $ Rate% A P Cost$ Case 721F $134,180 $37,000 14 $4,513.17 2% 0.0826 $12,540.23 Caterpillar 938G $163,101 $60,000 14 $3,028.97 2% 0.0826 $11,545.11 John Deere 624K $161,787 $45,000 14 $4,000.00 2% 0.0826 $13,646.61 Refurbishing $58,441.00 $29,000.00 3 $3,028.97 2% 0.3468 $13,239.11 RECOMMENDATION Based on the analysis, the lowest annual cost option that meets the City's needs is to replace the existing Caterpillar 938G with a Caterpillar 938K. It is recommended that the City acquire of a new loader through the CPV from Ziegler as bid at$223,101 and trade of the existing loader for a value of$60,000 for a net cost of$163,101. Fleet Condition Index Calculations Staff has developed a fleet condition index based on a vehicle rating system used by Dakota County Fleet Management Department using fleet industry standards.The intent is to combine data-derived (objective) information and combine it with condition(subjective) information to generate a consistently calculated condition index that staff can use to explain and justify equipment needs and/or replacements. The system uses a set of objective criteria that are converted to scaled indices,each of which can be pulled from the fleet management database (Cartegraph).The subjective category of condition is entered by the mechanics during annual inspections. Category Description Points Calculation Age Points Number of years of service divided by the life Years in service/life expectancy,scaled to 15 points. expectancy(years) * 15 Mileage/Odometer Odometer reading(miles or hours)divided by Odometer(miles or Points the estimated engine life and scaled to 10 points. hours)/est.engine lifespan 10 Use Category 5 Points: Vehicles serving City departments that 5 points for Public Safety provide emergency or other critical services that 3 points for General Public require specialized equipment that is available Works Use and dependable at all times(i.e.fire, police, 1 point for staff car or seldom plowing). used specialized equipment 3 Points: Critical or specialized vehicles used to provide key services. Service may be delayed until vehicle is repaired or there are other vehicle options such as rental or equipment sharing. 1 Point: Vehicles that either provide a less critical service to the city(i.e.tanker truck for flooding of rinks and watering) or the use can easily be accomplished with another vehicle(i.e. easily rented or use of personal car). Reliability Points Frequency a vehicle is taken out of service for 1 point for less than 5 repairs maintenance and repairs. Includes all scheduled 2 points for 5-15 repairs maintenance and non-scheduled maintenance 3 points for 16-25 repairs for the previous 12 month period (except 4 points for 26-35 repairs accidents after 2013). 5 points for more than 35 repairs Maintenance Points Ratio of the standard maintenance costs to the 1 point for 0%-20% capital or replacement cost of the vehicle 2 points for 21%-48% (purchase price plus any build-out or 3 points for 49%-75% refurbishment cost). 4 points for 76%-99% 5 points for 100%and higher Condition Points General condition of the vehicle(rust, exterior, 1 point for excellent interior,accident history,anticipated repairs, condition etc.) as determined by the mechanics. 2 points for very good 3 points for good 4 points for fair 5 points for poor condition The category indices are added together(45 points total)to calculate a single Overall Condition Index (OCI)for the vehicle. OCI Range Condition Category <15 points Excellent condition points Good condition >35 points Needs • . Consideration Work Session Agenda Item 1 C SMSC Agreement (Regular Agenda Item 9C)