HomeMy WebLinkAbout5F Oil and Air Reel Replacement Report
Phone 952.447.9800 / Fax 952.447.4245 / www.cityofpriorlake.com
4646 Dakota Street SE
Prior Lake, MN 55372
CITY COUNCIL AGENDA REPORT
MEETING DATE: MAY 7, 2018
AGENDA #: 5F
PREPARED BY: JASON WEDEL, PUBLIC WORKS DIRECTOR/CITY ENGINEER
PRESENTED BY: JASON WEDEL
AGENDA ITEM: CONSIDER APPROVAL OF A RESOLUTION AUTHORIZING THE
PURCHASE OF REPLACEMENT OIL/AIR REELS FOR THE
MAINTENANCE CENTER GARAGE.
DISCUSSION: Introduction
This agenda item addresses the need to replace the oil/air reels in the City
Maintenance Garage. Funding for these replacements is included in the
City’s adopted 2018 budget.
History
The oil pumps, oil reels, air reels, and oil meters are the original equipment
installed in the Maintenance Center when the building was built in 1996, or
a little over twenty-two years ago. This equipment is used daily for
preventative maintenance on all City equipment along with running the air
tools for the shop.
Current Circumstances
This equipment is now failing. A significant concern is the failing oil
meters. These meters regulate/calibrate the amount of oil being used
during routine preventative maintenance. In addition, air leaks undermine
the power of the air tools and therefore their effectiveness. Because of the
age of the equipment repair, parts are no longer available.
Proposals were received from two vendors, Zahl Petroleum and Kath Fuel
Service. Both vendors are known and competent vendors. The proposals
received from both vendors is for identical equipment. The lowest proposal
was received from Zahl Petroleum.
Zahl Petroleum Kath Fuel Service
$22,794.35 $25,772.91
Conclusion
Staff is recommending Zahl Petroleum because they had the lowest
proposal and are a known and competent vendor with a long-standing
relationship with the City.
ISSUES: The City’s 2018 budget included $20,000 for this equipment. The proposal
from Zahl Petroleum is therefore $2,794.34 over budget. The additional
cost overage will come from the savings the city received from the new
2
street sweeper coming in under budget. However, there is a salvage
value to the old equipment. We will seek to recover whatever residual
value which might be in the old equipment which will be used to reduce our
overall costs.
The costs would have been even higher if the vendor had been required to
install the equipment. To keep the costs lower, the installation of the
equipment will be handled by City staff.
FINANCIAL
IMPACT:
$20,000 is budgeted for this purpose and therefore the resolution requests
only that amount. The remaining $2794.34 come from the savings obtained
by having the new street sweeper come in under budget.
ALTERNATIVES: 1. Motion and a second as part of the consent agenda to approve a
resolution authorizing the purchase from Zahl Petroleum for the
Lube Station equipment at a cost of $22,794.35.
2. Motion and second to remove this item from the consent agenda for
additional discussion.
RECOMMENDED
MOTION:
Alternative #1
4646 Dakota Street SE
Prior Lake, MN 55372
RESOLUTION 18-___
A RESOLUTION AUTHORIZING THE PURCHASE OF REPLACEMENT OF OIL/AIR REELS
FOR THE MAINTENANCE CENTER GARAGE
Motion By: Second By:
WHEREAS, The City’s Maintenance Center Garage oil/air reels are failing and need to be
replaced; and
WHEREAS, The City received two proposals for the replacement equipment; and
Zahl Kath
$22,794.35 $25,772.91
WHEREAS, City Staff recommends Zahl Petroleum to provide the necessary equipment for the
oil/air reel replacement project.
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. The Mayor and City Council authorize the purchase from Zahl Petroleum for the oi/air reel
equipment at a cost not to exceed $22,794.35 with $20,000 drawn from the 2018 budget
and the remainder through trade in or another maintenance center account.
3. The 2018 Budget included funding for these improvements and the cost will be recorded
against 440-49400.00-55520.00. The $2,794.35 overage will be recorded against 410-
49420.00-55550.00.
Passed and adopted by the Prior Lake City Council this 7th day of May 2018
VOTE Briggs McGuire Thompson Braid Burkart
Aye ☐ ☐ ☐ ☐ ☐
Nay ☐ ☐ ☐ ☐ ☐
Abstain ☐ ☐ ☐ ☐ ☐
Absent ☐ ☐ ☐ ☐ ☐
______________________________
Frank Boyles, City Manager