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HomeMy WebLinkAbout#21 - Wood Chipper Purchase STAFF REPORT DATE: 1/2/2024 CONSENT TO: City Council FROM: Marty Powers, Public Works Director AGENDA ITEM: Approve Purchase of Wood Chipper REVIEWED BY: Clarissa Hadler, Finance Director BACKGROUND: The City of Lake Elmo Public Works Department utilizes a wood chipper all year around on over 180 lane miles of city streets, over 25 miles of tails and within 21 city Parks. The unit allows staff to trim trees and brush in areas where heavy equipment would damage lawns, fences, and other improvements. The existing 25-year-old chipper is in service and in need of replacement due to age, maintenance issues and inefficiencies. ISSUE BEFORE COUNCIL: Should the City Council approve the purchase of a new wood chipper as outlined in the 2024 Capital Improvement Plan? PROPOSAL DETAILS/ANALYSIS: Proceeding with this purchase will benefit the city and its citizens by replacing an aged piece of equipment with limited capabilities with a new unit that is more reliable and will improve efficiencies. As the department tasks grow, we have less staff on a wood chipping crew, this proposed unit is outfitted with a winch to pull trees out of challenging areas instead of staff cutting it into small pieces and dragging them out by hand. This purchase will aid Public Works in its increasing demand to remove trees and brush due to the continued growth of the city. Two units were demo-ed and quoted off the Source Well Cooperative Pricing; one from Tri-State and one from RDO. Staff recommends the lower quote from Tri-State. FISCAL IMPACT: Purchase of this equipment shall not exceed the budgeted $60,000 and is included in the 2024 CIP. OPTIONS: Approve purchase of Bandit Wood Chipper Deny purchase of Bandit Wood Chipper RECOMMENDATION: If removed from consent agenda….. “Motion to approve the purchase of a Bandit Wood Chipper from Tri-State Bobcat for an amount not to exceed $60,000.” ATTACHMENTS: • Tri-State Bobcat Bandit Quote (Source Well Cooperative Pricing) • RDO Equipment Vermeer (Source Well Cooperative Pricing) Investment Proposal (Quote) RDO Equipment Co. 11030 Holly Lane N Dayton MN, 55311 Phone: (763) 294-7800 - Fax: Proposal for: CITY OF LAKE ELMO 3445 IDEAL AVE N LAKE ELMO, MN, 550429406 WASHINGTON Investment Proposal Date: Pricing Valid Until: Deal Number: Customer Account#: Account Manager: Phone: Fax: Email: 2/23/2023 3/9/2023 1634035 5414030 Colin Shoen (952) 890-6144 (952) 890-7046 cshoen@rdoequipment.com Comments Sourcewell Contract# 031721-VRM Due to volatility in the supply chain and delayed lead times, equipment will be capped at a price increase of 4% per quarter between the PO being placed and delivery. Price increases are currently determined on a quarterly basis on April 1, July 1 and Oct. 1. Members should consult with local dealer on the estimated delivery. Equipment Information Quantity Serial Number Stock Number Hours (approx.) Status / Year / Make / Model Additional Items Cash Price 1 TBD TBD 0 New 2024 VERMEER BC1000XL $49,544.57 BC1000XL019 BASIC DISCHARGE DEFLECTOR BC1000XL027 5200LBS (DOM) AXLE, 16" TIRES, TONGUE, HITCH BC1000XL086 BASIC SOUND REDUCTION BC1000XL428 BC1000XL 2.9L T4F DEUTZ INSTRUMENTATION PANEL BC1000XL433 BC1000XL 74HP DEUTZ TIER 4 FINAL BC1000XL44VP BC1000XL 74HP DOM. VALUE PACK.- TIER 4 FINAL DEUTZ Prep / Reconditioning Prep/Frt $944.50 Other 16% Price Increase for Jan 2024 $7,927.13 Equipment Subtotal:$58,416.20 Purchase Order Totals Balance:$58,416.20 Total Taxable Amount:$0.00 MN STATE TAX:$0.00 MN SPECIAL TAX:$0.00 Sales Tax Total:$0.00 Sub Total:$58,416.20 Cash with Order:$0.00 Balance Due:$58,416.20 D1634035 Page 1 of 1