HomeMy WebLinkAbout9C - Purchase Mowers
MEETING DATE:
AGENDA #
PREPARED BY:
REVIEWED BY:
SUBJECT:
DISCUSSION:
STAFF AGENDA REPORT
JUNE 7, 1999
9C
AL FRIEDGES, PARKS SUPERVISOR I j
PAUL HOKENESS, DIRECT. OR OF PARKS & RECREATION~:' ~ =
CONSIDER APPROVAL OF RESOLUTION 99=-~
AUTHORIZING THE PURCHASE OF TWO (2) 72"
COMMERCIAL MOWERS THROUGH THE STATE OF
MINNESOTA COOPERATIVE PURCHASING AGREEMENT
History
The purpose of this agenda item is to authorize the purchase of
two (2) 1999 72" commercial mowers through the State of
Minnesota Cooperative Purchasing Agreement. At the May 19,
1997 City Council Meeting, the Council adopted an Equipment
Replacement Fund & Matrix. The purpose of the Equipment
Replacement Fund & Matrix is to identify and budget for the
equipment and vehicles that need replacement due to age or, for
additional equipment that needs to be purchased. All equipment
identified in the Matrix is subject to Council approval.
Current Circumstances
The Parks Maintenance Department relies heavily on these two
pieces of equipment for mowing approximately 350 acres of turf in
the Spring, Summer, and Fall and maintaining skating rinks and
sidewalks in the Winter.
We currently have four (4) Toro Groundsmasters 72" mowers and
one (1) Toro 5800 in the fleet. In need of replacement are two (2)
1988 models with over 4,700 hours on each mower.
Issues
Typically, most communities replace mowers every four or five
years. In the Equipment Replacement Matrix, we've identified
replacing our mowers every five years. The diesel engines,
transmissions and drivetrains on these machines are capable of
operating approximately 3,000 hours before needing repairs and
overhauls. This is common in most light equipment and tractors.
With the growth of our park system and added miles of boulevards
every year we accumulate more hours on these machines. We
currently average 500-600 hours on a machine annually
16:;JOO.!~.~k Ave. S.E., Prior Lake, Minnesota155372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245
AN EQUAL OPPORTUNITY EMPLOYER
compared to 300-400 hours in years past. The mowers to be
replaced have accumulated over 4,700 hours per machine.
Though five years or 3,000 hours is a suggested replacement
schedule for this type of mower, as with any other piece of
equipment, we will analyze the maintenance and repair costs prior
to requesting Council approval for future replacements.
From our records, history shows that once a mower exceeds
3,000 hours, repair costs begin to escalate. Both of these
machines have had mower decks replaced as well as one
transmission, at a cost of $11,490.00. While older machines are
being repaired, the down time interrupts the mowing schedule and
potentially creates an overtime situation.
Conclusion
There is $41,360.00 (tax not included) identified for the purchase
of two (2) 72" commercial mowers in the Parks & Recreation
Department Equipment Matrix which was identified in the Capital
Improvement Program. The funding source is identified as the
Revolving Equipment Fund. There will be two (2) 1988 72" Toro
Grounds Masters traded with this purchase.
The four wheel drive Toro will be used for hilly terrain and steep
slopes while the two wheel mower is used primarily for flat areas
and Boulevards.
AGMOWER.DOC
2
COST RECOVERY
SUMMARY:
Ex/st/no Eou/oment Reo/acement
Eauinment
1. Equipment Description: 1988 Toro 1999 Toro
Groundsmasters (Unit Groundsmasters
#24)
2. Equipment Condition: Fair New
3. Eauioment Hrs./Miles 4,776 0
4. Primary Use: Mowinq Mowinq
Secondary Use: Cleaning Cleaning
Rinks/Sidewalks Rinks/Sidewalks
5. Useful LifelDeoreciation Term: 5 Years 5 Years
6. Equipment Aqe: 11 Years New
7. Acquisition Date: 1988 1999
8. Acquisition Cost: $12,000.00 2 WD, $19,832.00
9. Matrix Budget Amount: -- $20,680.00 + Tax
10. Depreciation: $10,300.00
11. PresenUTrade-in Value: $1,700.00
12. Projected Equipment Retention -- 5 Years
Schedule:
13. Net Cost After Trade-in -- $18,132.00
14. Total Cost Includinq Tax -- $19,310.58
AGMOWER.DOC
3
COST RECOVERY
SUMMARY:
:aUlDment
1. Equipment Description: 1988 Toro 1999 Toro
Groundsmasters (Unit Groundsmasters
#26)
2. Equipment Condition: Fair New
3. Equipment Hrs./Miles 4,767 0
4. Primary Use: Mowinq Mowinq
Secondary Use: Cleaning Cleaning
Rinks/Sidewalks Rinks/Sidewalks
5. Useful LifelDepreciation Term: 5 Years 5 Years
6. Equipment Age: 11 Years New
7. Acquisition Date: 1988 1999
8. Acauisition Cost: $12,000.00 4 WD, $21,334.00
9. Matrix Budaet Amount: -- $20,680.00 + Tax
10. Depreciation: $10,300.00
11. PresentlTrade-in Value: $1,700.00
12. Projected Equipment Retention -- 5 Years
Schedule:
13. Net Cost After Trade-in -- $19,634.00
14. Total Cost Includinq Tax -- $20,910.21
Existina EauiDment ReDfacement
E
AGMOWER.DOC
4
COST BENEFIT
ANALYSIS:
ALTERNATIVES:
RECOMMENDATION:
REVIEWED BY:
AGMOWER.DOC
In the past, the Parks Maintenance Department has not
replaced our mowers until they were 10 + years old and
accumulated 5,000 hours resulting in costly repairs and down
time. Also, according to the Toro Representative, the
present day trade-in value on a five year old machine is
$5,500 - $7,000 vs. the $1,200 to $1,700 we currently
receive. The following mechanical cost summary is a per unit
cost estimate to repair the mowers: Typically these
breakdowns begin to occur after 3,000 hours.
COMPONENT' COST
Enqine TComoletel) $4,800.00
Deck (Comolete) $4,980.00
Hvdrostatic Transmission $1,530.00
Sub Total $11.310.00
Sales Tax $735.15
TOTAL $12,045.15
The alternatives are as follows:
1. Approve Resolution 99-XX authorizing the trade-in of our
currently owned 1988 Toro Groundsmasters (Units #24 &
#26) for $1,700.00 each and purchase one, 1999 Toro
Groundsmasters 3250, 2 wheel drive for the cost of
$19,310.58 (tax included) and one, 1999 Toro
Groundsmasters 3250, four wheel drive for the cost of
$20,910.21 (tax included).
2. Table this resolution for a specific reason.
3. Deny this resolution for a specific reason.
5
MOTION BY:
WHEREAS,
WHEREAS,
WHEREAS,
(j-!
RESOLUTION 99-" /
RESOLUTION APPROVING THE PURCHASE OF
TWO (2), 72" COMMERCIAL MOWERS
1K:-
, )p
SECOND BY:
the 1999 Equipment Replacement Fund & Matrix identifies the purchase of
two (2) 1999 replacement 72" commercial mowers; and,
the mowers being replaced are 1988 Taro Groundsmasters; and,
these mowers will be purchased through the State of Minnesota
Cooperative Purchase Agreement with negotiated pricing as follows:
MAKE/MODEL TORO GROUNDSMASTER
3250 - 2 Wheel Drive
Unit Cost $19,832.00
Trade-In (1988 Groundsmaster\ Less ($1,700.00\
Sub Total $18132.00
Sales Tax $1,178.58
TOTAL $19,310.58
MAKE/MODEL TORO GROUNDSMASTER
3250- 4 Wheel Drive
Unit Cost $21,334.00
Trade-In 11988 Groundsmaster\ Less ($1,700.00\
Sub Total $19634.00
Sales Tax $1,276.21
TOTAL 20,910.21
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE,
Minnesota, to approve the purchase of two (2) 72" commercial mowers through the State of
Minnesota cooperative purchasing agreement.
day of
YES
,1999.
Passed and adopted this
NO
Mader Mader ..,...
Kedrowski 'X Kedrowski
Schenck ,. Schenck
Petersen 7: Petersen
Wuellner , Wuellner
{ Seal}
City Manager
City of Prior Lake
16200 Eagle Creek Ave. S.E., Prior Lake. Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245
AN EQUAL OPPORTUNITY EMPLOYER