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ITEM 3.5 Purchase of Zero Turn lawn mowerot NNESOTA DEPARTMENT INFORMATION Request for City Council Action ORGINATING DEPARTMENT: REQUESTOR: MEETING DATE: Parks and Recreation Ross Demant, Parks & Recreation Director April 25, 2016 Streets PRESENTER(s): REVIEWED BY: ITEM #: Consent Agenda Adam Flaherty, Finance Director 3.5 AGENDA ITEM DETAILS RECOMMENDATION: Staff recommends purchasing a zero turn lawn mower which is included in the City's Capital Improvement Plan. Staff also is recommending trading in the equipment mentioned below as part of the zero turn purchase. ARE YOU SEEKING APPROVAL OF A CONTRACT? IS A PUBLIC HEARING REQUIRED? No No BACKGROUND/JUSTIFICATION: The City currently mows approximately 90 plus acres on a bi-weekly basis. To achieve this the City has two zero turns, a front mount mower that is fitted with a snow blower in the winter and a mower and collection unit in the summer, an 11 foot wide area mower and a towed unit that attaches to a three point hitch on a tractor. The front mount mower is typically used for collection of debris and grass in the summer due to its size and steering radius. The zero turns have proven to be important pieces of equipment in the mowing operations. Currently, the zero turns are used daily to trim around trees and other obstacles to make it safer and more efficient for the wide area mower. Of the two zero turns in the fleet one is a 2010 with approximately 914 hours and the other is a 2012 with 692 hours. As part of the 5 year Capital Improvement Plan the 2010 John Deere zero is scheduled for replacement. Staff has identified three pieces of equipment that have not been utilized in the past several years. Staff discussed with the sale representative from John Deere the trade-in cost on these pieces equipment, the sale representative gave a trade-in amount on each piece of equipment that was discussed. A description of the equipment and the trade-in amount is listed below. Equipment Trade-in Amount Land Pride OS1548 3 Point Overseeder $3,750 Front Skid Steer Blades $2,500 John Deere 72" Rear Discharge Mower Deck $1,500 With the cost of a new mower almost covered by trading in equipment that is currently not in use, staff is recommending keeping the current 2010 zero turn. This recommendation is taking into account additional mowing next year with the construction of Northwood Park and the potential addition of Norin Landing in 2018. The zero turn purchase was discussed at the April, 2016 Public Works Subcommittee and it was unanimously recommended to be brought before the Council for approval. SUPPORTING DOCUMENTS: X ATTACHED ❑ NONE A. CIP Info B. Quote MOTION: (Please word motion as you would like it to appear in the minutes.) Motion to trade-in the above mentioned equipment for a zero turn mower which results in a net purchase price of $833.12. RI inr,FT INFORMATION FUNDING: BUDGETED: X YES Fund #206 ❑ NO ACTION TAKEN ❑ APPROVED AS REQUESTED ❑ DENIED ❑ TABLED ❑ OTHER (List changes) COMMENTS: Capital Improvement Plan City of Otsego, Minnesota Project # FLEET-16-02 Project Name Mower - Zero Turn Description Replacing the 2010 John Deere zero turn mower. Justification I 2016 thru 2020 Department Fleet Contact Parks and Recreation Manager Type Equipment Useful life Category Equipment Priority n/a Total Project Cost: $6,945 The Parks zero turn mowers have become a valuable tool with the amount of mowing the parks department does on a weekly basis. These zero turn have a 60 inch deck and are able to mow around areas where the large area mower cannot. The current mower is a 2010 with 850 hours on it as of July 29, 2015. The purchase price of a new zero turn is estimated at $9,945 and the trade-in value of the current mower is estimated at $3,000 which would bring the total estimated cost to $6,945. Expenditures 2016 2017 2018 2019 2020 Total Equipment 6,945 6,945 Total 6,945 6,945 Funding Sources 2016 2017 2018 2019 2020 Total 206 - Capital Equipment 6,945 6,945 Revolving Total 6,945 6,945 Thursdmt December 17, 2015 68 JOHN DEER Quote Id: 12817023 ALL PURCHASE ORDERS MUST BE MADE OUT TO (VENDOR): Deere & Company 2000 John Deere Run Cary, NC 27513 FED ID: 36-2382580; DUNS* 60-7690989 Delivering Dealer: John Braunshausen Minnesota Equipment, Inc. 13725 Main Street Rogers, MN 55374 rogerssales@mnequip.com ALL PURCHASE ORDERS MUST BE SENT TO DELIVERING DEALER: Minnesota Equipment, Inc. 13725 Main Street Rogers, MN 55374 763-428-4107 rogerssales@mnequip.com Prepared For: City Of Otsego Proposal For: City Of Otsego Quote Prepared By: JOHN BRAUNSHAUSEN johnbraunshausen@mnequip.com Date: 20 February 2016 Confidential Offer Expires: 31 May 2016 ALL PURCHASE ORDERS MUST BE MADE OUT ALL PURCHASE ORDERS MUST BE SENT TO (VENDOR): TO DELIVERING DEALER: Deere & Company Minnesota Equipment, Inc. 2000 John Deere Run 13725 Main Street Cary, NC 27513 Rogers, MN 55374 FED ID: 36-2382580; DUNS#: 60-7690989 763-428-4107 rogerssales@mnequip.com Quote Summary Prepared For: Delivering Dealer: City Of Otsego Minnesota Equipment, Inc. MN John Braunshausen 13725 Main Street Rogers, MN 55374 Phone: 763-428-4107 johnbraunshausen@mnequip.com Quote ID: 12817023 Created On: 20 February 2016 Last Modified On: 20 February 2016 Expiration Date: 31 May 2016 Equipment Summary Selling Price Qty Extended JOHN DEERE Z930M Commercial $ 8,583.12 X 1 = $ 8,583.12 ZTrak Contract: MN Commercial Riding Mowers_103916 Price Effective Date: February 20, 2016 Equipment Total $ 8,583.12 Trade In Summary Qty Each Extended Land Pride OS1548 3 Point Overseeder 1 $ 3,750.00 $ 3,750.00 Payoff $ 0.00 Total Trade Allowance $ 3,750.00 3- Ftont Skid Steer V Blades 1 $ 2,500.00 $ 2,500.00 Payoff $ 0.00 Total Trade Allowance $ 2,500.00 JOHN DEERE 72" Rear Discharge Mower Deck 1 $ 1,500.00 $ 1,500.00 for Front Mount Payoff $ 0.00 Total Trade Allowance $ 1,500.00 Trade In Total $ 7,750.00 * Includes Fees and Non -contract items Quote Summary Equipment Total $ 8,583.12 Trade In $ (7,750.00) Salesperson : X Accepted By: X Confidential ALL PURCHASE ORDERS MUST BE MADE OUT TO (VENDOR): Deere & Company 2000 John Deere Run Cary, NC 27513 FED ID: 36-2382580; DUNS#: 60-7690989 ALL PURCHASE ORDERS MUST BE SENT TO DELIVERING DEALER: Minnesota Equipment, Inc. 13725 Main Street Rogers, MN 55374 763-428-4107 rogerssales@mnequip.com SubTotal $ 833.12 Total $ 833.12 Down Payment (0.00) Rental Applied (0.00) Balance Due $ 833.12 Salesperson : X Accepted By: X Confidential Selling Equipment Quote Id: 12817023 Customer Name: ALL PURCHASE ORDERS MUST BE MADE OUT ALL PURCHASE ORDERS MUST BE SENT TO (VENDOR): TO DELIVERING DEALER: Deere & Company Minnesota Equipment, Inc. 2000 John Deere Run 13725 Main Street Cary, NC 27513 Rogers, MN 55374 FED ID: 36-2382580; DUNS* 60-7690989 763-428-4107 rogerssales@mnequip.com JOHN DEERE Z930M Commercial ZTrak Hours: Stock Number: Contract: MN Commercial Riding Mowers_103916 Selling Price * Price Effective Date: February 20, 2016 $ 8,583.12 * Price per item - includes Fees and Non -contract items Code Description Qty List Price Discount% Discount Contract Extended Amount Price Contract Price 2163TC Z930M Commercial ZTrak 1 $ 10,529.00 22.00 $ 2,316.38 $ 8,212.62 $ 8,212.62 Standard Options - Per Unit 001A United States and Canada 1 $ 0.00 22.00 $ 0.00 $ 0.00 $ 0.00 1036 24x12x12 Pneumatic Turf 1 $ 0.00 22.00 $ 0.00 $ 0.00 $ 0.00 Tire for 54 In. and 60 In. Decks 1504 60 In. 7-Iron PRO Side 1 $ 0.00 Discharge Mower Deck 2002 Fully Adjustable Suspension 1 $ 475.00 Seat with Armrests Standard Options Total $ 475.00 Suggested Price 22.00 $ 0.00 $ 0.00 $ 0.00 22.00 $ 104.50 $ 370.50 $ 370.50 $ 104.50 $ 370.50 $ 370.50 $ 8,583.12 Confidential