PR - 1-23-13 Mower Purchases1
A3 Problem Solving
Use this form when solving a specific problem
Use the Process Review Report to identify waste and update processes
Concern/Problem
Purchasing three new mower for Parks and Recreation Department to avoid 2013
tier 4 diesel emission standard price increases.
Identify those
departments, divisions,
or units that may be
impacted
Parks Division 100-410-330
Golf Course
Record the date the
problem was identified
November 2012
Originator
Robert Ash
Contacts
Robert Ash, Mark Lytle,
Problem Solving Team
Robert Ash, Mark Lytle, Dion Louthan and Ron Franz
Describe Current
Situation
In 2013 new tier IV emission standards will be in place for all small diesel engines
(which includes mowers). Some lower priced 2012 models will be available for a
short time in 2013. The current policy of purchasing new equipment, writing spec.
and taking bids does not provide much flexibility in purchasing those items in an
expedited time frame.
Analysis
As part of the approved Vehicles and Equipment Sub-CIP, the Parks and Recreation
Department began the process to purchase three new mowers. During the research
phase, we became aware of new Tier IV emission standards that would be put in
place on select 2013 diesel units based on engine horsepower (of which the units the
City of Salina intends to purchase would fall). These new standards are projected to
increase the cost of each unit by 10% - 15%. In an effort to further maximize city
resources, staff researched the use of General Services Administration (GSA)
contracts. These contracts provide competitive pricing which allow government
agencies to purchase, without going out for bid on certain items. Municipalities are
generally allowed to purchase at the same price as is published in the GSA. This will
include companies like Toro and John Deere. The City would place the order directly
with the supplier, thus saving money by leveraging procurement costs through
cooperative contracts on brand new 2012 units.
Make Recommendation
We recommend that the City purchase 2012 mowers using GSA pricing as quickly
as possible in 2013.
Labor and Cost Savings XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX
XXXXXXXXXXXXXXXXXXXXX
Annual dollar savings:$12,198
This reflects a 10% saving by purchasing 2012 models
XXXXXXXXXXXXXXXXXXXXX
Annual hours of increased capacity:
XXXXXXXXXXXXXXXXXXXXX
Use bullet points to identify customer service or employee benefits:
In addition to saving money we can standardize equipment with a brand of mower
that has proven to be of high quality and long life.
Implementation Plan
Receive GSA quotes from vendor in Dec. 2012
Request approval from City Commission to purchase at first meeting in 2013
2
Attachments
(include current and proposed process documentation forms, or before and after
photos, or other before and after descriptions as appropriate)
XXXXXXXXXXXXXXXXXXX
Approval Process
See next page for approval process
Supervisor’s Review
and others in the Chain of
Command
Instructions: This form is submitted through the chain of command to the Director
Date:
Name:
Comments:
Director’s Approval
Instructions: Approval authority is delegated to each Director for all
recommendations that results in $5,000 or less in annual savings, or 250 hours or
less of annual increased capacity. This form is sent to the Process Improvement
Director for his approval.
Date: 01/14/2013
Name: Dion Louthan
Approved/Denied: I think this is a great idea that allows the city to save money and
get the desired equipment in the most efficient manner. The final approval will rest
with the City Manager.
Process Improvement
Director’s Approval
Instructions: Upon approval this form is sent to the CMO Executive Assistant, who
forwards a copy to members of the Executive Support Team. They determine how to
convert hours into budgetary savings.
Date: 01/23/2013
Approved/Denied:
City Manager’s
Approval
Instructions: Final sign off for all recommendations that exceed $5,000 in annual
savings, or 250 hours of annual increased functional capacity is by the City
Manager, who also signs off on any plans to convert hours to budgetary savings. The
CMO Executive Assistant converts the approved form into a pdf file that is saved on
the P drive and in Laserfiche.
Date:01/23/2013
Approved/Denied: