HomeMy WebLinkAbout9C1 - Purchase Rotary Mower
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CITY COUNCIL AGENDA REPORT
MEETING DATE:
AGENDA #
PREPARED BY:
REVIEWED BY:
AGENDA ITEM:
February 20, 2001
9C 1
AL FRIEDGES, PARKS SUPERVISOR
BUD OSMUNDSON, PUBLIC WORKS DIRECTOR
CONSIDER APPROVAL OF RESOLUTION Ol-xx AUTHORIZING THE
PURCHASE OF ONE (1) 16' ROTARY MOWER THROUGH THE STATE
COOPERATIVE PURCHASING PROGRAM
DISCUSSION:
History
The purpose of this agenda item is to authorize the purchase of one (1) new 16 foot
rotary mower through the State Cooperative Purchasing Program. There is
$68,778.00 identified in the Equipment Fund and Matrix for the purchase of this
piece of equipment. The funding source will be drawn from the Public Works &
Parks portion of the Capital Improvement Program.
Current Circumstances
We currently utilize four Toro Groundsmaster 72" mowers and one 16' Toro 580D
mower for mowing 350 acres of turf. We have had the same number of mowers
since 1995. The addition of the new mower will help us maintain the 350 acres of
turf, plus an additional 51 acres will soon be added with the construction of
Thomas Ryan Memorial Park, Knob Hill Park, Glynwater Park, Deerfield Park,
Wilds Park and the additional irrigated athletic fields at Lakefront.
Conclusions
There is $68,778 (tax not included) identified for the purchase of one 16' rotary
mower in the Equipment Fund and Matrix. There is no trade-in on this purchase.
The Jacobson (HR9016) and Toro (508D) 16' rotary mowers are bid under separate
contracts under the State Cooperative Purchasing Program so the city can select
either one as low bid in its category.
Vendor Northstar Turf
Make Jacobsen
Model HR9016
Price $62,132.00
Tax $ 4,038.58
Total $66,170.58
M.T.I.
Toro
580D
$64,534.00
$ 4,194.71
$68,728.71
Staff recommends the purchase ofthe Toro 580D for the following reasons:
1. The Toro 580D is a proven piece of equipment and has been on the market
for twelve years versus one year for the Jacobsen HR9016. I am concerned
about being a beta test for a $70,000 piece of equipment.
2. Parts inventory can be utilized for both mowers.
3. Currently we have a 580D in the fleet. The Parks Maintenance staffis very
16'~~ffgle Creek Ave. S.E., Prior Lake, Minrlesota 55372-1714 / Ph. (952) 447-4230 / Fax (952) 447-4245
AN EQUAL OPPORTUNITY EMPLOYER
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FISCAL IMP ACT:
16' rotary mower
familiar with the operation and maintenance of this machine.
4. The Toro 580D has a two-year warranty versus a one year warranty that
Jacobsen offers on the HR9016.
5. The wings on the side decks on the Jacobsen HR9016 have to be
mechanically secured by the operator before transporting from park to park
whereas the T oro does not.
6. The Toro 580D has an automatic weight transfer on the deck when drive
wheel slippage is detected. This improves traction, safe operation and
minimizes turf damage.
Cost Bellefit Allalvsis
The City Council has set some guidelines for purchasing equipment. The criteria
and how this purchase addresses each is shown below:
Use Millimum Requiremellt Specificatiolls Not Listed Wallts:
The work performed by the mower dictates the type and size of equipment needed
to efficiently perform mowing operations. Both machines are 80 H.P. and capable
of cutting a 16' swath. They are equipped with only the essentials to perform this
function.
Use FUllctiollal Requiremellts Not All Illdividual Mallufacturer's Specificatiolls:
The specifications were prepared by the State Purchasing Department's employees
based upon their experience with equipment and the need expressed by public
agencies purchasing from the bid.
Bids were provided by the following manufacturers:
> Toro
> Jacobsen
Receive Where Possible Three Real Bids:
There were only two manufacturers that bid on the State Purchasing Contract.
There is a $2,558.13 difference from high to low. I am concerned that there is no
track record on the Jacobson machine and this savings could be lost in less than one
year in repair costs.
Time For The City Coullcil To Act:
If the City Council desires additional information, this item could be deferred. If
possible, staff would like to take delivery on this mower by May 2001.
Utilize Some Form Of Fillallcial Allalysis To Support The Purchase:
I have contacted three turf maintenance finns to determine the cost to mow 51 acres
for the next ten years (the lifetime of the equipment). Twenty-nine of the acres are
irrigated athletic fields which are mowed every three days The remaining 22 acres
are non-irrigated neighborhood parks mowed every five days. These figures were
compared with the estimated life cycle costs shown on Appendix A.
The results are as shown below:
Contract mowing:
Cost to own:
$250,250 - low
$651,150 - high
$204,298
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AL TERNA TIVES:
RECOMMENDED
MOTION:
REVIEWED BY:
16' rotary mower
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Appendix B shows the figures for contract mowing.
The alternatives are as follows:
1. Approve Resolution Ol-xx authorizing the purchase of one Toro 580D rotary
mower for the cost of $68,728.71.
2. Purchase the Jacobsen HR9016 for a total cost of$66,170.58.
3. Prepare specifications and publicly bid contract mowing of 51 acres of turf grasses.
4. Table this item for a specific reason.
5. Deny this agenda item for a specific reason.
Staff recommends alternative number 1.
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RESOLUTION APPROVING THE PURCHASE OF ONE TORO 580D ROTARY
MOWER
RESOLUTION Ot-xx
MOTION BY:
SECOND BY:
WHEREAS,
The 2001 Equipment Replacement Fund and Matrix identifies the purchase of one
16' rotary mower; and
WHEREAS,
The funds for the 16' rotary mower will be drawn from the Capital Improvement
Program; and
WHEREAS,
The mower will be purchased through the State of Minnesota Cooperative
Purchase Agreement which has prepared specifications and received bids as
follows:
Vendor
Make
Model
Price
Tax
Total
Northstar Turf
Jacobsen
HR9016
$62,132.00
$ 4,038.58
$66,170.58
M.T.!.
Toro
580D
$64,534.00
$ 4,194.71
$68,728.71
WHEREAS,
The staff recommends the purchase of a Toro 580D from M.T.I. Distributing Co.
for the cost of$68,728.71.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE,
MINNESOT A, to approve the purchase of one Toro 580D rotary mower through the State of
Minnesota Cooperative Purchasing Agreement from M.T.I. Distributing at a cost not to exceed
$68,728.71.
Passed this 20th day of February 2001.
YES
NO
Mader Mader
Ericson Ericson
Gundlach Gundlach
Petersen Petersen
Zieska Zieska
{ Seal }
City Manager
City of Prior Lake
16' If~5'~~delmann St. S.E., Prior Lake, Minnesota 55372 / Ph. (952) 440-9675 / Fax (952) 440-9678
AN EQUAL OPPORTUNITY EMPLOYER
Appendix A
Estimated Life Cycle Cost
For
Toro S80D
(Based on owning and operating the machine for 10 years)
1. Vehicle Description: 2001 Toro 580D
2. Attachments: None
3. Original Purchase Price: $68,728
(include all attachments)
4. Resale Price: $20,000
5. Scheduled Life Expectancy: 10 years
6. Usa.ge Costs:
a. Shop Hours: 536
b. Shop Labor Costs: $10,720
($20/Hr)
c. PartsIMaterials: $5,100
d. Farmed Out Costs: N/A
e. Insurance: Minimal
f. Fuel Costs: $9,750
g. Downtime Replacement Rental: N/A
h. Total Usage Costs: $25,570
(b+c+d+e+f+g)
7. Total Hours: 6,500
8. Total Labor Operating Cost: $130,000
9. Depreciation: (3-4) $48,728
10. Total Life Cost: (6H+8+9) $204,298
11. Life Cycle Average Hour Cost: $31.43
16' rotary mower
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Appendix B
Ten Year Cost for Contract
Mowing of 51 Park Acres
The example below illustrates 29 acres of irrigated athletic fields mowed every three days.
Company Chapman Torborg Myron's Lawn Lakers Lawn Svc
Service
# Acres mowed 29 29 29
Cost per acre $11.00 $15.50 $30.00
Total cost per
Mowing $319.00 $449.50 $870.00
# of Mowings
Per Year 50 50 50
Total Cost Per
Season $15,950.00 $22,475.00 $43,500.00
Total Yearly Cost
Per Acre $550.00 $775.00 $1,500.00
The example below illustrates 22 acres of non-irrigated neighborhood parks mowed every five days.
Note: $2.75 per acre increase for transportation.
Company
Chapman Torborg
# Acres mowed 22
Cost per acre $13.75
Total cost per
Mowing $302.50
# of Mowings
Per Year 30
Total Cost Per
Season $9,075.00
Total Yearly Cost
Per Acre $412.50
Total Cost for
51 acres irrigated and
non irrigated turf $25,025.00
Total Average
Yearly Cost Per Acre
(Irrigated and
non-irrigated turf) $490.68
Total Cost over
10 years $250,250.00
16' rotary mower
Myron's Lawn Lakers Lawn Svc
Service
22 22
$18.25 $32.75
$401.50 $720.50
30 30
$12,045.00 $21,615.00
$547.50 $982.50
$34,520.00
$65,115.00
$676.86
$1,276.76
$345,200.00
$651,150.00