HomeMy WebLinkAbout5I Replacement Tanker Truck ReportPhone 952.447.9800 / Fax 952.447.4245 / www.cityofpriorlake.com
4646 Dakota Street SE
Prior Lake, MN 55372
CITY COUNCIL AGENDA REPORT
MEETING DATE: NOVEMBER 19, 2018
AGENDA #: 5I
PREPARED BY: JASON WEDEL, PUBLIC WORKS DIRECTOR/CITY ENGINEER
RICK STEINHAUS, FIRE CHIEF
PRESENTED BY: JASON WEDEL
AGENDA ITEM: CONSIDER APPROVAL OF A RESOLUTION AUTHORIZING
PURCHASE OF FIRE TRUCK REPLACEMENT
GOAL AREA AND
OBJECTIVE: Public Safety
1.Ensure a safe and quality-built environment.
DISCUSSION: Introduction
The purpose of this agenda report is to consider approval of a resolution
awarding the contract for the replacement of the City’s fire tanker truck.
History
Fire truck #9260 was purchased in 2000 and delivered in 2001. The
Equipment Replacement Plan was created as a budgeting tool to assist in
financial planning for major expenditures and to help moderate the annual
fleet replacement budget. The goal is to replace equipment in a timely
and cost-effective manner. This fire truck is currently 18-years old and in
need of replacement due to unrepairable safety equipment within the
stainless-steel tank.
This tanker truck has a history of issues with the baffles located within the
water tank. The baffles are necessary to prevent water from moving
around inside the tank while the truck is in motion. Water moving around
inside an un-baffled tank or a tank with compromised baffles makes the
truck dangerously unstable and not safe to drive.
The original tank and baffles were repaired in 2012 after they began
failing and the tank began leaking. At that time the service manager
stated that the tank was in very poor condition due to severe rust and
scaling and fixing it again would not be practical as the tank would most
likely, in his opinion, fail again faster due to the first repair degrading the
steel.
The tanker was brought to the City Council in 2016 for refurbishment but
was subsequently decided against due to the cost exceeding
$100,000.00.
2
ISSUES:
FINANCIAL
IMPACT:
Current Circumstances
Unfortunately, the repaired baffles are again failing, and it is not practical
to redo them a second time. It is therefore necessary to purchase a new
tanker truck. The City’s Equipment Replacement Plan had scheduled the
replacement of this vehicle in 2018 but it was pushed up the CIP to 2023.
This purchase is proposed to be accelerated to 2019 due to safety
concerns.
The Fire Chief has been in discussions with the manufacturing of the
replacement tanker truck as part of the budgeting process and was
informed that a there would be an increase of up to 7% in price in 2019.
If we agree to purchase the new fire truck now and take procession in
2019 the manufacturer has agreed to hold the 2018 price.
Conclusion
Due to the savings that will be achieved by entering into a purchase
agreement in 2018 for delivery of the new fire truck in 2019 it is
recommended that the City move forward with the proposed purchase
agreement.
This piece of equipment is part of the capital improvement program which
has been approved by the city council. The 2019 Budget has not yet been
approved by the City Council. Entering into a purchase agreement for the
fire truck now would necessitate that the purchase be included in 2019 in
accordance with our agreement with the vendor.
The funding for the fire truck is included in the Revolving Equipment Fund
proposed budget for 2019. The Equipment Replacement Plan includes
$323,575 for this purchase. The expenditure will be coded to 410-
42200.00-55550.00 (Fire Dept Vehicle account).
The proposed HGAC state bid amount from Rosenbauer for the new
truck is $248,960 in 2018. This amount is inclusive of the chassis, tank
body, and ALL associ ated equipment.
If the purchase agreement is delayed until 2019 the cost increase will be
between 5-7% which equates to an increase between $12,448 and
$17,427.
If the Council approves the purchase of the fire tanker tonight, the 2019
equipment replacement plan budget will be reduced by $74,615 to reflect
the lower expenditure and related bonding.
ALTERNATIVES: 1. Motion and second as part of the consent agenda to approve a
resolution authorizing entering into a purchase agreement for the
replacement of the Fire Department tanker truck.
2.Motion and second to remove this item from the consent agenda for
additional discussion.
RECOMMENDED
MOTION:
Alternative #1
3
ATTACHMENTS: 1. Rosenbauer HGAC contract proposal
2. Standard City Service Contract
3. Cover letter from Rosenbauer covering the 2019 cost increase
4646 Dakota Street SE
Prior Lake, MN 55372
RESOLUTION 18-___
A RESOLUTION AUTHORIZING THE PURCH ASE OF A FIRE TANKER REPLACMENT
Motion By: Second By:
WHEREAS,
WHEREAS,
Each year the City Council adopts the Equipment Replacement Plan as part of the Capital
Improvement Program (CIP); and
The 2019 Equipment Replacement Plan contemplates the replacement of #9260
Peterbuilt Tanker; and
WHEREAS, The City received a proposal from Rosenbrauer as part of a cooperative bidding organization
as allowed under Minnesota Statutes to purchase a fire tanker truck for $248,690 if the order
is placed by December 08, 2018; and
WHEREAS, The cost of the fire tanker truck will increase between 5% to 7% if purchased in 2019, and;
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 Manager are hereby authorized to execute a Purchase Agreement on behalf of the
City with Rosenbauer Minnesota LLC for a fire tanker truck.
3. The approval of the Purchase Agreement is subject to approval by the City Attorney as to the form.
Passed and adopted by the Prior Lake City Council this 19th day of November 2018.
VOTE Briggs McGuire Thompson Braid Burkart
Aye ☐ ☐ ☐ ☐ ☐
Nay ☐ ☐ ☐ ☐ ☐
Abstain ☐ ☐ ☐ ☐ ☐
Absent ☐ ☐ ☐ ☐ ☐
______________________________
Frank Boyles, City Manager
To: City of Prior Lake Date: 11-08-18
4646 Dakota Street SE
Prior Lake, MN 55372
RE: HGAC Truck Purchase
We hereby propose and agree to furnish, after your acceptance of this proposal and the proper execution by the City of
Prior Lake, MN, hereinafter called the BUYER and an officer of Rosenbauer Minnesota LLC, Wyoming, MN a division
subsidiary of Rosenbauer America, hereinafter called the COMPANY, the following apparatus and equipment:
Rosenbauer Heavy Duty EXT Tanker Body $145,003.00
Freightliner M2-112 2 Door $103,687.00**
HGAC TOTAL … $248,690.00**
Two Hundred Forty Eight Thousand Six Hundred Ninety Dollars and 00/100.
All of which are to be built in accordance with the specifications, and drawing attached which are made a part of this
agreement and contract. Total contract price includes required HGAC interlocal agreement fee. NO ADDITIONAL
TAXES OR FEES APPLY
**CHASSIS IS TO BE PROGESS PAID FOR IN THE AMOUNT SHOWN ABOVE UPONS ITS
COMPLETION AND ARRIVAL AT THE APPARATUS MANUFACTURERS FACILITY OR
ADDITIONAL INTEREST CHARGES WILL APPLY.
Delivery: The estimated delivery time for the completed apparatus, is to be made 365-390 calendar days after receipt of
and approval of this contract duly executed, (Chassis must arrive within 210 days or delivery may be delayed) subject to
all causes beyond the Company’s control. The quoted delivery time is based upon our receipt of the specified materials
required to produce the apparatus in a timely manner. The Company can not be held responsible for delays due to Acts
of God, Labor Strikes, or Changes in Governmental Regulations that resu lt in delayed delivery to our manufacturing
facilities of these specified materials. This delivery estimate is based on the Company receiving complete and accurate
paperwork from the Buyer and that no major changes take place during pre-construction, mid point inspections or final
inspections. Changes required or requested by the Buyer during the construction process may be cause for an increase in
the number of days required to build said apparatus.
Payment Terms: Final payment for the apparatus shall be made at time of final inspection and pick up / delivery of the
completed vehicle. It is the responsibility of the Buyer to have full payment ready when the apparatus is complete and
ready to pick up. If payment is delayed or delivery is delayed pending payment, a daily finance and storage fee may
apply. Upon pick up of the apparatus by the Buyer, Buyer agrees to provide all liability and physical damage insurance.
It is further agreed that if on delivery and test, any defects should develop, the Company shall be given reasonable time
to correct same. Guarantee of the chassis is subject to the guarantee of the chassis manufacturer.
The amount in this proposal shall remain firm for 30 days.
Respectfully submitted, BUYER
We accept the above Proposal and
enter into contract with the signature(s) below.
Sales Rep Title
Sales Representative
Title
Date
After company receipt of this document signed by the Buyer , the document will be reviewed and upon
approval, countersigned by the Company putting the document in force.
ROSENBAUER MINNESOTA LLC.
Title
Date
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Standard Contract
Materials
This agreement (“Agreement”) is between the City of Prior Lake, Minnesota ("City"), whose
business address is 4646 Dakota Street SE, Prior Lake, MN 55372, and Rosenbauer
Minnesota LLC a Minnesota ("Contractor") whose business address is PO Box 549, 5181 260th
Street Wyoming, MN 55092
Based on the mutual promises and covenants set forth herein, the sufficiency of which are
hereby acknowledged, the City and Contractor agree as follows:
1. Scope of Work. Contractor agrees to provide all the materials in accordance with the terms
of this Agreement and attached Exhibit A (“Work”). The terms of this Agreement shall take
precedence over any provisions of the Contractor’s proposal and/or general conditions. If
Contractor’s proposal is attached as Exhibit A, City rejects any contract terms and/or general
conditions included in such proposal unless specifically agreed to by the City in writing.
2. Effective Date and Term of Agreement. This Agreement shall become effective as of
November 19, 2018. The Work shall be completed and the apparatus delivered by
December 31, 2019.
3. Compensation for Services. City agrees to pay the Contractor a fixed sum of
$248,690.00 as full and complete payment for the Work (“Contract Price”).
A. Any changes in the scope of the Work which may result in an increase to the
compensation due the Contractor shall require prior written approval by an
authorized representative of the City or by the City Council. The City will not pay
additional compensation for services or materials that do not have prior written
authorization.
B. If Contractor is delayed in performance due to any cause beyond its reasonable
control, including but not limited to strikes, riots, fires, acts of God, governmental
actions, actions of a third party, or actions or inactions of City, the time for
performance shall be extended by the period of time lost by reason of the delay.
Contractor will be entitled to payment for its reasonable additional charges, if any,
due to the delay.
4. Method of Payment. Contractor shall prepare and submit to City, upon Contractor’s receipt
of the chassis, an invoice for the chassis. City shall pay the invoice within 35 days of receipt.
Contractor shall prepare and submit to the City upon final delivery of the apparatus a final
invoice for the balance of the Contract Price. City shall pay the invoice within 35 days of
receipt.
A. Claims. In compliance with Minn. Stat. 471.38, by making a claim for payment,
Contractor is declaring that the account, claim, or demand is just and correct and that
no part of it has been paid.
B. Waiver of Claims. The Contractor’s acceptance of final payment shall constitute a
waiver of all claims by the Contractor except those previously made in writing and
identified by the Contractor as unsettled at the time of application for final payment.
5. Compliance with Laws and Regulations. In providing the Work, the Contractor shall
abide by all statutes, ordinances, rules, and regulations pertaining to the Work. Any violation
of statutes, ordinances, rules and regulations pertaining to the Work shall constitute a
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material breach of this Agreement and entitle the City to immediately terminate this
Agreement.
6. Contractor’s Employees. Contractor and its employees, representatives and agents shall
comply with all City policies (no smoking, parking location, check in, sign it, etc.). Contractor
and its employees, representatives and agents shall use care, coordination and
communication in order to ensure City employees and guests are not disturbed or
inconvenienced. Contractor’s employees, representatives and agents shall be neat
appearing and at City’s request wear an identification badge approved by the City.
Contractor must honor the City’s request to reassign an employee, representative or agent
whom the City determines is unsuitable for the Work. When necessary, Contractor’s
employees, representatives and agents will be provided with keys or access cards in order
to perform their work. Any lost keys or cards that result in rekeying a space or other cost to
the City will be billed back to the Contractor. The City shall have the right to perform or
require to be performed criminal background checks on any employee, representative or
agent of the Contractor who will perform any aspect of the Work. The Contractor shall
cooperate with the City in the performance of all such criminal background checks.
7. Contractor’s Representative. Contractor has designated a project representative to
coordinate with the City and manage the Work. The project representative shall be assisted
by other staff members as necessary to facilitate the completion of the Work in accordance
with the terms of this Agreement. Contractor may not remove or replace the project
representative without the approval of the City.
8. City's Representative. City has designated a project representative with respect to the
Work. He or she shall have authority to transmit instructions, receive information, and
interpret the City's policy and decisions with respect to the Work.
9. Condition and Inspection. All materials furnished under this Agreement shall be new and
in current manufacture, unless otherwise specified, and all materials shall be of good quality,
free from faults and defects and in conformance with this Agreement. All materials not
conforming to these requirements shall be considered defective. Materials shall be subject
to inspection and testing by the City. Materials that are defective or not in current
manufacture may be returned to the Contractor at the Contractor’s expense.
10. Insurance.
A. General Liability. Contractor shall maintain a general liability insurance policy with
limits of at least $1,000,000.00 for each person, and each occurrence, for both
personal injury and property damage. Contractor shall provide City with a Certificate
of Insurance verifying insurance coverage before providing service to the City.
B. Worker's Compensation. Contractor shall secure and maintain Workers’
Compensation Insurance in accordance with the statutory requirements of the State
of Minnesota. Contractor shall secure and maintain such insurance as will protect
Contractor from claims under the Worker's Compensation Acts and from claims for
bodily injury, death, or property damage which may arise from the performance of
Contractor’s services under this Contract.
11. Indemnification. Contractor will defend and indemnify City, its officers, agents, and
employees and hold them harmless from and against all judgments, claims, damages, costs
and expenses, including a reasonable amount as and for its attorney’s fees paid, incurred or
for which it may be liable resulting from any breach of this Agreement by Contractor, its
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agents, representatives, contractors and employees, or any negligent or intentional act or
omission performed, taken or not performed or taken by Contractor, its agents,
representatives, contractors and employees, relative to this Agreement. City will indemnify
and hold Contractor harmless from and against any loss for injuries or damages arising out
of the negligent acts of the City, its officers, agents or employees.
12. Termination.
A. This Agreement may be terminated at any time by either party for breach or non-
performance of any provision of this Agreement in accordance with the following.
The party (“notifying party”) who desires to terminate this Agreement for breach or
non-performance of the other party (“notified party”) shall give the notified party
notice in writing of the notifying party’s desire to terminate this Agreement describing
the breach or non-performance of this Agreement entitling it to do so. The notified
party shall have five days from the date of such notice to cure the breach or non-
performance. Upon failure of the notified party to do so, this Agreement shall
automatically terminate.
B. Upon the termination of this Agreement, whether by expiration of the original or any
extended term or terms hereof, or for any other reason, Contractor shall have the
right, within a reasonable time after such termination to remove from City’s premises
any and all of Contractor’s equipment and other property. Except for liability resulting
from acts or omissions of a party, arising, taken or omitted prior to such termination,
the rights and obligations of each party resulting from this Agreement shall cease
upon such termination. Any prior liability of a party shall survive termination of this
Agreement.
C. In the event of dissolution, termination of existence, insolvency, appointment of a
receiver, assignment for the benefit of creditors, or the commencement of any
proceeding under any bankruptcy or insolvency law, or the service of any warrant,
attachment, levy or similar process involving Contractor, City may, at its option in
addition to any other remedy to which City may be entitled, immediately terminate
this Agreement by notice to Contractor, in which event, this Agreement shall
terminate on the notice becoming effective.
13. Mediation. Each dispute, claim or controversy arising from or related to this Agreement
shall be subject to mediation as a condition precedent to initiating arbitration or lega l or
equitable actions by either party. Upon service of a written notice requesting mediation, the
parties shall have ten (10) days to jointly select one person to act as mediator. If the parties
are unable to agree upon a mediator, the parties shall ask t he Scott County District Court to
select a mediator. The mediation shall be conducted pursuant to the commercial mediation
procedures of the American Arbitration Association but shall not be administered by the
American Arbitration Association. No arbitration or legal or equitable action may be instituted
for a period of 90 days from the filing of the request for mediation unless a longer period of
time is provided by agreement of the parties. Each party shall bear its own costs of the
mediation process. The parties shall share equally the fees and expenses of the mediator.
Mediation shall be held in the City of Prior Lake unless another location is mutually agreed
upon by the parties. The parties acknowledge that mediation is a voluntary process, and
that the mediator does not have the authority to bind either party absent the party’s consent.
The parties shall memorialize any agreement resulting from the mediation in a mediated
settlement agreement, which agreement shall be enforceable as a settlement in any court
having jurisdiction thereof.
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14. Notice. Any notice required or permitted under this Agreement shall be delivered in one or
more of the following manners: (i) delivered personally; (ii) mailed by United States
registered or certified mail, return receipt requested, postage prepaid; or (iii) deposited cost
paid with a nationally recognized, reputable overnight courier. Notice shall be delivered or
directed to an officer or agent of the Contractor or to the City Manager as applicable at the
address set forth on page 1 of this Agreement. Notice shall be deemed effective on the date
of receipt. Any party may change its address for the service of notice by giving written notice
of such change to the other party in any manner above specified, 10 days prior to the
effective date of such change.
15. Independent Contractor. At all times and for all purposes, Contractor is an independent
contractor engaged by City to perform the services described in this Agreement and
Contractor shall have no authority to employ persons or make purchases on behalf of City,
or otherwise bind or obligate City. No statement in this Agreement shall be construed to find
the Contractor an employee of the City.
16. Employees. Contractor agrees not to hire any employee or former employee of City and
City agrees not to hire any employee or former employee of Contractor prior to termination
of this Agreement and for one year thereafter, without prior written consent of the former
employer in each case.
17. Assignment or Subcontract. Contractor shall not subcontract any part of the Work; nor
may Contractor assign this Agreement, or any interest arising herein, without the prior
written consent of the City.
18. Audit Disclosure. Pursuant to Minn. Stat. 16C.05, Subd. 5, the books, records, documents
and accounting procedures and practices of the Contractor or other parties relevant to this
Agreement are subject to examination by the City and either the Legislative Auditor or the
State Auditor for a period of six years after the effective date of this Agreement.
19. Data Practices. Any reports, information, data, etc. given to, or prepared or assembled by
the Contractor under this Agreement which the City requests to be k ept confidential, shall
not be made available to any individual or organization without the City's prior written
approval. This Agreement is subject to the Minnesota Government Data Practice Act,
Minnesota Statutes Chapter 13 (“Data Practices Act”). All government data, as defined in
the Data Practices Act, which is created, collected, received, stored, used, maintained, or
disseminated by Contractor in performing any of the functions of the City during
performance of this Agreement is subject to the requir ements of the Data Practice Act and
Contractor shall comply with those requirements as if it were a government entity. All
subcontracts entered into by Contractor in relation to this Agreement shall contain similar
Data Practices Act compliance language.
20. Non-Discrimination. During the performance of this Agreement, the Contractor shall not
discriminate against any employee or applicant for employment because of race, color,
creed, religion, national origin, sex, marital status, status with regard to public assistance,
disability, sexual orientation or age. The Contractor shall post in places available to
employees and applicants for employment, notices setting forth the provision of this non-
discrimination clause and stating that all qualified applicants will receive consideration for
employment. The Contractor shall incorporate the foregoing requirements of this paragraph
in all of its subcontracts for the W ork, and will require all of its subcontractors for the W ork to
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incorporate such requirements in all subcontracts for the Work. The Contractor further
agrees to comply with all aspects of the Minnesota Human Rights Act, Minnesota Statutes
363.01, et. seq., Title VI of the Civil Rights Act of 1964, and the Americans with Disabilities
Act of 1990.
21. Conflicts. No salaried officer or employee of the City and no member of the Council, or
Commission, or Board of the City shall have a financial interest, direct or indirect, in this
Agreement. The violation of this provision renders this Agreement void.
22. Rights and Remedies. The duties and obligations imposed by this Agreement and the
rights and remedies available thereunder shall be in addition to and not a limitation of any
duties, obligations, rights and remedies otherwise imposed or available by law.
23. Damages. In the event of a breach of this Agreement by the City, Contractor shall not be
entitled to recover punitive, special or consequential damages or damages for loss of
business.
24. Enforcement. The Contractor shall reimburse the City for all costs and expenses, including
without limitation, attorneys' fees paid or incurred by the City in connection with the
enforcement by the City during the term of this Agreement or thereafter of any of the rights
or remedies of the City under this Agreement.
25. Governing Law. This Agreement shall be controlled by the laws of the State of Minnesota.
Venue and jurisdiction for any action, suit or proceeding arising out of this Agreement shall
be only in the courts of Scott County, Minnesota or the federal courts for the United States
for the District of Minnesota.
26. Entire Agreement. The entire agreement of the parties is contained herein. This
Agreement supersedes all oral agreements and negotiations between the parties relating to
the subject matter hereof as well as any previous agreements presently in effect between
the parties relating to the subject matter hereof. Any alterations, amendments, deletions, or
waivers of the provisions of this Agreement shall be valid only when expressed in writing
and duly signed by the parties, unless otherwise provided herein.
27. Severability. The provisions of this Agreement are severable. If any portion hereof is, for
any reason, held by a court of competent jurisdiction to be contrary to law, such decision
shall not affect the remaining provisions of this Contract.
28. Waiver. No action nor failure to act by the City or the Contractor shall constitute a waiver
of any right or duty afforded any of them under this Agreement, nor shall any such action or
failure to act constitute an approval of or acquiescence in any breach thereunder, except as
may be specifically agreed in writing.
29. Counterparts. This Agreement may be executed in multiple counterparts, each of which
shall be considered an original.
In witness whereof, the parties have caused this Agreement to be executed by their duly
authorized agents.
CITY OF PRIOR LAKE
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__________________________________
Mayor
___________________________________
City Manager
CONTRACTOR
By: ________________________________
Its: _______________________________
11-8-2018
Good morning Rick,
As per your request here is a revised contract extending the offer days and having an
updated document date. I received approval to get a price extension after some
discussion internally here.
We are literally getting letters from vendors daily with price increases that are much
higher than what we have seen in past years. We typically would see increases in the
2.5%-4% range on a yearly basis but are seeing increases from vendors as high as 15 -25%
based on tariffs, increased metal cost etc.
Not all the increases we are being hit with are that high but 7% or more is common and
we will be updating our costing again before year end and have already on many certain
products we offer. Individual parts and service costs will and already have been adjusted
as well.
Hopefully your City will allow you to take advantage of this truck price before year end as
the truck will go up a fair amount however, I’m not exactly sure what that exact
percentage of increase will be yet.
Let me know if you have any questions at all Chief and have a very good day.
Steven A. Harris
GENERAL SAFETY FIRE APPARATUS
“HELPING YOU SERVE YOUR COMMUNITY”
Direct Cell - 612.703.6019
Office - 651.462.1000
Fax – 651.462.1700
E-Mail – steve@generalsafetyfire.com
www.rosenbaueramerica.com