HomeMy WebLinkAbout9C1 - Purchase Rotary Mower
MEETING DATE:
AGENDA #
PREP ARED BY:
REVIEWED BY:
AGENDA ITEM:
DISCUSSION:
CITY COUNCIL AGENDA REPORT
February 27, 2001
9C 1
AL FRIEDGES, PARKS SUPERVISOR
BUD OSMUNDSON, PUBLIC WORKS DIRECTOR
CONSIDER APPROVAL OF RESOLUTION 01-xx AUTHORIZING THE
PURCHASE OF ONE (1) 16' ROTARY MOWER THROUGH THE STATE
COOPERATIVE PURCHASING PROGRAM
Historv
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 fO-1rr Toro Groundsmaster 72" mowers and one 16' Toro 580D
mower for mowing 350 acres of turf. We have had the same miiTIber of mowers
since 1995. The addition of the new mower will help us maintain the 350 acres of
turf, pIus 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 of the 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 staff is very
16'rotarymof7'073 Adelmann St. S.E., Prior Lake, Minnesota 55372 / Ph. (952) 440-9675 / Fax (952) 440-9678
AN EQUAL OPPORTUNITY EMPLOYER
T-.-T- T.-
lr
.T1i
. 1
FISCAL IMPACT:
] 6' rotary mower
etl r'
WV~.
familiar with the operation and maintenance of this machi~
4. The Toro 580D has a two-year warranty versus a on/year warranty that
Jacobsen offers on the HR9016. 7- .
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 Taro 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 Benefit Analvsis
The City Council has set some guidelines for purchasing equipment. The criteria
and how this purchase addresses each is shown below:
Use Minimum Requirement Specifications Not Listed Wants:
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 Functional Requirements Not An Individual Manufacturer's Specifications:
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:
~ T oro
~ 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 Council 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 Financial Analysis To Support The Purchase:
I have contacted three turf maintenance firn1s 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
2
ALTERNATIVES:
RECOMMENDED
MOTION:
REVIEWED BY:
16' rotary mower
ITl r
Appendix B shows the figures for contract mowing.
The alternatives are as follows:
1. Approve Resolution 01-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.
orks Director
3
J
II
[II
RESOLUTION Ol-xx
RESOLUTION APPROVING THE PURCHASE OF ONE TORO 580D ROTARY
MOWER
MOTION BY:
WHEREAS,
WHEREAS,
SECOND BY:
The 2001 Equipment Replacement Fund and Matrix identifies the purchase of one
16' rotary mower; and
The funds for the 16' rotary mower will be drawn from the Capital Improvement
Program; and
The mower will be purchased through the State of Minnesota Cooperative
Purchase Agreement which has prepared specifications and received bids as
follows:
Vendor Northstar Turf M.T.!. , }~\ \.
Make Jacobsen Toro . l~ ' \~,-+,t"v+'-'
Model HR9016 580D eCJ>-'17 O~1~ t, LA .
Price $62,132.00 $64,534.00P ;j,v-';"") ../) I r r
Tax $ 4,038.58 $ 4,194.7~,/ \,-l." of"'f lflr I 1tF.t)I
Total $66,170.58 $68,7?$':11 1t""-!~ VJ"~/I"""""
/' Q. IT,.." " f1:v..l.
The staff recommends the purchase of a Tore 580D fror~~)l.T.I. Distributing Co. rp~-/ Y1:-V~
for the cost of $68,728.71. / :.e/~i ~i..I~ "
/ Ill' "I~
NOW THEREFORE, BE IT RESOLVED BY THE CITY COU~'CIL OF PRIOR LAKE, t:Vv\b
MINNESOT A, to approve the purchase of one Toro 580D rotary IJ10wer through the State of
l Minnesota Cooperative P, urc, hasing Agree, m, en.t. fr, om M',T.!,,' Dist?~ut.ing, a" t ~ co,s, t,not t,.o e.x~, eed j " /',&..-
, $68,]1Ul __------------0_, "J\^'~\,k&-,.'\ -tf.l/') ~t~~1 t' ,.f\.! C:l, '~Lu.~' 1 \"A....-. '1'
'~) ~ ~e.-re..l h t,.& (....th..c...... .s-tu\.".& 'Tow -"(!D ]) I t-o VVti"\A ,'V\.-\ ~'z:.~\ Pre t\---.". I""-'~
Passed this 27th day of February 2001. d)A CZf~~ et-tJ JC1A.ltJ- ~t~} A.. t~ h t le
't^\'^"\,^^\k~ES",^'4f,e.1~'r 1"- VN~P~~~
WHEREAS,
{ Seal }
Mader Mader
Ericson Ericson
Gundlach Gundlach
Petersen Petersen
Zieska Zieska
City Manager
City of Prior Lake
]6' ~'A'aelmann 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 580D
(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. Usage 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
I :1
]
I
III
Feb 16 01 11:05a
PeF'F'er/Gre~witt
612-975-9105
F'. 1
February 16, 2001
A1 Friedges
City of Prior Lake
17073 Adelmann St.
Prior Lake, MN 55372
Dear Mr. Friedges,
Thank you tor inquiring into the Jacobsen HR-90l6 Rotary Mower. These large area
rotary mowers have proven to be a tremendous asset to municipalities like yours in
respect to productivity, durability, and quality of cut.
North Star Turf recently provided you details and specifications on the HR-9016 and
the cost benefits of the State contract pricing available to Municipalities. However, in
doing so I inadvertently erred on the warranty information. The HR-9016 carries a two-
year warranty on parts and labor instead of the one-year warranty that I quoted
you. I'm very sorry for this oversight. ~
Again, thank you for your interest. Please feel free to contact me at (612) 325-2824
with any questions.
Sincerely,
Steve Pepper
North Star Turf
3OS0 Centerville. Road. 51. Paul. Minnesota 55117
651.484.8411. Fax 651.484.8257.800.592.9513