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HomeMy WebLinkAbout5E - Purchase of one 72" Rotary Mower AGENDA # PREP ARED BY: SUBJECT: DATE: INTRODUCTION: BACKGROUND: DISCUSSION: ST AFF AGENDA REPORT SE AL FRIEDGES, PARKS SUPERVISOR CONSIDER APPROVAL OF RESOLUTION 98-XX AUTHORIZING THE PURCHASE OF (1) ONE 72" COMMERCIAL MOWER. MARCH 16, 1998 The purpose of this agenda item is to authorize the purchase of (1) one 1998 72" Commercial Mower. At the May 19, 1997 City Council meeting, the Council adopted an Equipment Replacement Fund and Matrix. Identified in the matrix is $19,740 plus tax for acquisition of this equipment in 1998. The Parks Maintenance Department relies heavily on this piece of equipment which is used for mowing in the summer and maintaining skating rinks and sidewalks in the winter. We currently have four Toro Groundsmaster 72" mowers in the fleet. Needing replacement is a 1983 model. Typically, most communities replace mowers every four or five years. In the equipment replacement matrix we've identified replacing our mowers every five years. In the past, we have not replaced our mowers soon enough, resulting in replacing engines, transmissions, and other costly breakdowns. The diesel engines on these machines are capable of operating approximately 3,000-4,000 ~ hours before needing engine overhaul. This is common in most light equipment and tractors. We accumulate 500-600 hours on our mowers annually, resulting in about 3,000 hours at the end of a five year period. The mower to be replaced has accumulated over 6,390 hours. Due to the condition of this mower, we converted it to be a field striper six years ago which has decreased the amount of hours, compared to using it as a mower. From our records, history shows that once a mower exceeds 5 years of use, repair costs begin to escalate. From the fifth to eighth year of service, some mowers have cost up to $7500.00 in parts (labor not included). While older machines are being repaired, the down-time interrupts the mowing schedule and creates an overtime situation. 16200 Eaqle Creek Ave. S.E., Prior Lake, Minnesota S5372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 STAR N1WR.DOC r - AN EQUAL OPPORTUNITY EMPLOYER Also, the trade-in value on a 5 year old machine is $5500 to $7000 vs. the $1200 we currently are receiving for this 1983 trade-in. COST RECOVERY SUMMARY: Existinl! Eouinment Renlacement Eouinment I. Equipment Description: Toro Groundsmaster Toro Groundsmaster 325D 2. Equipment Condition: Poor New 3. Equipment Hrs./Miles 6,390 0 4. Primary Use: Mowing Mowing Secondary Use Cleaning Rinks Cleaning Rinks 5. Useful Life/Depreciation Term: 5 years 5 years 6. Equipment Age: 15 years 0 7. I Acquisition Date: 1983 1998 I 8. I Acquisition Cost: $7,000.00 $20,543.85 I 9. Matrix Budget Amount: $19,740.00 + tax 10. I Depreciation: $7,000.00 I II. I Present/Trade-in Value: $1,200.00 $5,500.00-$7,000 I 12. Projected Equipment 5 years Retention Schedule: STAR_MWR.DOC 2 .. , BID TABULATIONS: Vendor: Northstar Turf Cushman L.T.G. Power Gerlach Service Motors Equipment MakeIModel Jacobsen Turfcat Ransomes 723D Toro 325D Toro 325D T428D Groundsmaster Groundsmaster Cab $,4,315.00 $4,500.00 $3,550.00 $3,645.00 Mower 15,780.00 15,439.00 15,500.00 15,534.00 Quick Attachment N/A N/A 825.00 845.00 4 Wheel Drive Included 2,690.00 1,725.00 1,700.00 Trade-in 1983 (600.00) (2,500.00) (1,000.00) (1,100.00) Groundsmaster SUB TOTAL: $19,495.00 $20,129.00 $20,600.00 $20,624.00 Tax 1,267.18 1,308.38 1,339.00 1,340.56 TOTAL $20,762.18 $21,437.38 $21,939.00 $21,964.56 ALTERNATIVES: 1. Approve resolution 98-xx authorizing the purchase of one (1) 72" Toro Groundsmaster 325D mower in the amount of $20,543.85 from MTI. 2. Table this agenda item for a specific reason. 3. Deny this agenda item for a specific reason. RECOMMENDATION: Staff recommends Alternative No.1. ACTION REQUIRED: Motion and second to approve Alternative No.1 awarding bid to Minnesota Toro Inc. in the amount of $20,543.85 for the purchase of one (1) 72" Toro Gro ndsmaster mower. 5tJ 0/ REVIEWED BY: REVIEWED BY: STAR_MWR.DOC 3 tf, ~::~ RESOLUTION 98-xx RESOLUTION APPROVING THE PURCHASE OF (l)ONE 72" COMMERCIAL MOWER MOTION BY: SECOND BY: WHEREAS, the 1998 Equipment Replacement Fund and Matrix identifies the purchase of one (1) replacement 72" mower and, WHEREAS, the mower being replaced is a 1983 Toro Groundsmaster and, WHEREAS, bids were solicited, received and tabulated as follows: Vendor: Northstar Turf Cushman L.T.G. Power Gerlach Service Motors Equipment MakeIModel Jacobsen Turfcat Ransomes 723D Toro 325D Toro 325D T428D Groundsmaster Groundsmaster Cab $A,315.00 $4,500.00 $3,550.00 $3,645.00 Mower 15,780.00 15,439.00 15,500.00 15,534.00 Quick Attachment N/A N/A 825.00 845.00 4 Wheel Drive Included 2,690.00 1,725.00 1,700.00 Trade-in 1983 (600.00) (2,500.00) (1,000.00) (1,100.00) Groundsmaster SUB TOTAL: $19,495.00 $20,129.00 $20,600.00 $20,624.00 Tax 1,267.18 1,308.38 1,339.00 1,340.56 TOTAL $20,762.18 $21,437.38 $21,939.00 $21,964.56 WHEREAS, After analyzing the bids the apparent lowest responsible bidder IS Minnesota Toro Inc. in the amount of$20,543.85. 16200 ijm5~OOQ:.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 AN EQUAL OPPORTUNITY EMPLOYER NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE, Minnesota Toro Inc. be awarded the bid for the purchase of one (1) 72" Groundsmaster 325D mower in the amount of$20,543.85. Passed and adopted this day of ,1998. YES NO Mader Kedrowski Schenck Petersen Wuellner Mader Kedrowski Schenck Petersen Wuellner {Seal} City Manager City of Prior Lake RESMOWR.DOC