HomeMy WebLinkAbout15.D.2. Replacement of Propane Tank
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CITY OF SHAKOPEE
MEMORANDUM
TO: Mayor & City Council
Mark McNeill, City Administrator
Bruce Loney, Public Works Director
Greg V oxland, Finance Director
FROM: Michael Hullander, Public Works Supervisor
DATE: December 2, 2003
SUBJECT: Replacement of Propane Tank
INTRODUCTION:
The Public Works Department is requesting to replace our existing 11,010 gallon propane
tank (which was manufactured 6-04-51) with a new 1,000 gallon tank. This will be a
straight trade with no cost to the city.
BACKGROUND:
In the late 1970's Public Works installed an 11,010 gallon propane tank to meet the
requirements for alternative fuel use. In the late 1970's propane costs were less than 1/3
the cost of gasoline. Propane costs have risen to the point where it is cost prohibitive to
convert vehicles from gasoline to propane.
Staff has been working on getting rid of this tank for over two years. It has been difficult
because the existing tank is from an old railroad car. Other surrounding states have
passed legislation prohibiting the use of these tanks. Iowa is trying to pass legislation
requiring users to replace these tanks over an agreed upon time frame. Staff believes now
is the time to rid ourselves of a potential future problem.
There are three vehicles remaining that use propane:
1. Truck #158, which is used by the building maintenance department, is a 1988
GMC One Ton Pickup.
2. Truck #114, which is used by public works, is a 1993 Chevy 3500.
3. Truck #159 is used by public works for pavement repairs. Propane is used to
heat the asphalt mix.
Public Works also uses propane torches for pavement repairs along with other uses. We
are also researching for the future purchase or shared purchase of an infrared heater
which uses propane and is the latest technology in pavement repairs. Public Works
currently contracts out with Bergman Co. Inc. to do this type of pavement repair around
manholes.
Russ Head of Quality Propane Inc. is willing to remove our existing tank and replace it
with a new 1,000 gallon certified tank. Removal, new tank, installation and pumping the
propane from one tank to the other all at no cost to the city.
ALTERNATIVES:
1. Trade our existing 11,010 gallon tank for a new 1,000 gallon certified tank with
removal and installation at no cost to the city.
2. Deny the request.
3. Table for additional information.
RECOMMENDATION:
Staff recommends alternative #1.
ACTION REOUESTED:
Authorize staff to trade our existing 11,010 gallon tank for a new 1,000 gallon certified
tank with the removal and installation at no cost to the city.
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Michael Hullander
Public Works Supervisor