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<br /> <br />Item 07G <br />TUESDAY, May 27, 2014, City Council Meeting <br />Page 2 <br /> <br /> <br />program last year, the state’s guaranteed price of $2.79 per gallon would have equated to an <br />estimated cost savings of $10,625.70 for that one-year period. <br /> <br />Staff has been working with two vendors to receive quotes on a new 3,000-gallon unleaded <br />gasoline fueling station and a new fuel management system that will incorporate the current <br />diesel tank monitoring system. The following is a summary of the quote estimates: <br /> <br />Contractor Equipment Installation Electrical Est. Total <br />Zahl PetroleumMaintenance Co. $ 35,521 $ 8,290 $ 6,140 $ 49,951 <br />Pump and Meter Service, Inc. $ 29,684 $14,438 $ 3,340 $ 47,462 <br /> <br />The unleaded fuel tank will be above-ground and a concrete containment pad is required to be <br />constructed beneath it. The following is a summary of the quote estimates: <br /> <br />Contractor Installation of Concrete Pad <br />Neeck Construction, Inc. $8,100 <br />Pump and Meter Service, Inc. $4,620 <br /> <br />The total of Pump and Meter Service quote is $52,082. The 2014 budget includes $30,000 for <br />the new fueling station and was based upon a rough cost estimate. However, a cost savings in <br />fuel will be seen by purchasing the fuel off the state contract. This savings is projected to be <br />about $5,300 for the last 6 months of 2014 and approximately $10,600 (based upon 2013 <br />pricing) each year thereafter. The cost savings equates to a payback period of about would be <br />4.9 years. <br /> <br />The new unleaded fueling tank, pumps, controllers, and management system could be salvaged <br />and reinstalled after a new public works building is constructed. It is unclear whether or not the <br />existing underground diesel fuel tank could be reused, but this is heavily dependent upon sitting <br />of the new facility. <br /> <br />Recommendation: <br />Staff recommends that the City Council adopt the attached that will award a contract to Pump <br />and Meter Service, Inc of Hopkins, Minnesota for installation of a new unleaded fueling station <br />and fuel management system at the Public Works Maintenance Facility. <br /> <br />Respectfully submitted, <br />Don Peterson <br />Public Works Supervisor <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br />