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Home My WebLink About2012-03-07 PACKET 04.G.REQUEST OF CITY COUNCIL ACTION COUNCIL AGENDA MEETING ITEM # DATE 3/7/2012 5 G o PREPARED BY River Oaks Golf Course Bruce Anderson ORIGINATING DEPARTMENT DEPARTMENT HEAD COUNCIL ACTION REQUEST Consider authorizing the purchase of three Toro mowers (to replace one rough mower, one bank mower, and one fairway mower) from MTI Distributing for a total cost of $112,217.77, including trade -ins and sales tax. STAFF RECOMMENDATION Authorize the purchase. This equipment would be purchased under the Intergovernmental Purchasing Alliance. BUDGET IMPLICATION 80,000.00 BUDGETED AMOUNT SUPPORTING DOCUMENTS ® MEMO /LETTER: Memo from Bruce Anderson. ❑ RESOLUTION: ❑ ORDINANCE: ❑ ENGINEERING RECOMMENDATION: ❑ LEGAL RECOMMENDATION: ® OTHER: Equipment Quotes ADMINISTRATORS COMMENTS $112,217.77 ACTUAL AMOUNT City Administrator Date COUNCIL ACTION TAKEN: ❑ APPROVED ❑ DENIED ❑ OTHER Document3 VUT T 1 !; . 1 To: Honorable Mayor, City Council Members and City Administrator i'I • I I t' 1 11'.,A Subject: Capital Purchase Golf Maintenance In the 2012 River Oaks Golf Course budget is $80,000 for capital purchases of two pieces of golf course maintenance mowers. In the 2013 River Oaks Golf Course budget is $75,000 for repairs and updating of the golf course irrigation system. Maintenance staff has tested all equipment and finalized numbers with irrigation company (Toro) for capital expenses for 2012 and 2013. Discussion Current Rough Mower is not operable (2003 model) repairs estimated at $8,000.00. Current Bank mower (1997 model) is worn out and not worth repair investment. Total replacement of both mowers $71,453.50 including trade -ins, plus sales tax with Toro. Staff would also like to replace (1) of our current (2) Fairway Mowers at this time. Current fairway mower is (2000) model with high working hours, hydraulic leaks and in need of numerous repairs due to age and high volume of use (mows all fairways 4 -5 times each week). Replacement cost would be $40,763.67 after trade, plus sales tax. Please note that in 2013 this mower will be increase in price by $10,000 to $12,500 due to EPA Tier Four small engine emission controls on diesel engines sizes 25 to 74 horsepower. Staff feels with the replacement of these (3) key pieces of equipment along with 2011 purchases (greens mowers) puts River Oaks in a good position for greens, fairways, rough and tees over the next couple of years. 2013 irrigation improvement is now estimated at $50,000 (2012 Toro final estimate) compared to $75,000 as budgeted. River Oaks Golf Course has two options for purchase of equipment in 2012. Option one would be purchase all three pieces from Toro at $112,217.77 including trade -ins, plus sales tax. Option two would be lease to own all three pieces (5 years) from Toro including trade -ins and sales tax at $26,088.83 per year (less impact to budget) with a one dollar buy -out at the end of lease with an interest rate of 4.3 %. Purchase all mowers from Toro (NTFI Distributing). Staff prefers Toro over John Deere. Toro pieces are lighter weight, decks moving simultaneously, comfort, lower center of gravity and ease of maneuverability. Purchase of Toro machines would be done by Intergovernmental Purchasing Alliance (IPA) which the City of Cottage Grove is a member. Toro quote does reflect (IPA) pricing. River Oaks 2012 Maintenance Equipment Replacement 1. Intermediate rough mower COST TRADE -IN TOTAL Toro Groundmaster 4300 -D $42,137.53 $1700 $40437.53 John Deere 8800 $42,492.78 $500 $41992.78 Use: Mow rough, around fairways, mow banks around tees, greens, sand traps and etc. Current condition: Not operable. 2003 Toro Reelmaster 550OD: Hours 3602, Broken pinion gear in main drive. This same repair cost $3796.84 in 2009. Estimate cost of repair $4000 plus. This is a heavily used mower. Reels are also worn out; replacement cost about $3000 to $4000. Total cost to repair $7000 to $8000. Staff Recommends: Replacing with Toro Groundmaster 4300 -D 2. Bank mower COST TRADE -IN TOTAL Toro Groundmaster 3500 -D $31315.97 $300 $31015.97 John Deere 7400 $31484.70 $1000 $30484.70 Use: Mow rough, mow banks around tees, greens, sand traps and etc. Current Condition: Poor. 1997 Jacobsen TriKing 1900 -D: Hours 3291. Worn out, high maintenance cost. Staff Recommends: Replacing with Toro Groundsmaster 3500 -D. The Toro mower has a lower center of gravity and lighter weight, which makes it easier and safer to operate on slopes. On the Toro mower all three decks move simultaneously. On the John Deere mower you can only move one deck at a time which causes gaps when mowing around bunkers and tees causing the operator to double cut that area The staff prefers The Toro mower. 3. Fairway mower COST TRADE -IN TOTAL Toro Reelmaster 5410 $42,763.67 $2000 $40,763.67 John Deere 7500 $42,556.44 $3000 $39,556.44 Use: Mow fairways Current condition: Fair, 2000 John Deere Fairway Mower 3235B: Hours est. 3600. Hydraulic drive leaks ($1200 part cost est.). Worn out, high annual maintenance costs. Staff Recommends: Replacing with Toro Reelmaster 5410. The Toro is very easy to get on and off. Easier to operate, and has a 4cylinder motor verses 3 cylinder. The staff prefers The Toro mower. MTI Distributing Equipment Proposal Ben Ratzlaff River Oaks Golf 11099 Highway 61 Cottage Grove, MN 55016 651- 276 -4693 Log Expiration Date: 3 -14 -12 Quote HE T105 -2012 -0214 Qty Model Number Description Nadonal IPA NIPA Price Price Extension 1 30639 TORO GROUNDSMASTER 3500 -D, 3WD, 35 hp Turbo- $31,315.97 $31.,315.97 Charged Kubota Diesel Engine, Rotary Mower With Sidewinder Feature, 3 Contour Plus Decks, 68" Mowing Width, 2 Post ROPS 1 30841 Work Ligh Kit 1 30859 TORO GROUNDSMASTER 4300 -D, Cross Trax All -Wheel $42,137.53 $42,137.53 Drive, 44 hp Kubota Turbo - Charged Diesel Engine, Rotary Mower, 5 Contour Plus 22" Decks, 90" Mowing Width, 2 Post ROWS, Work Lights Standard 1 85 -4750 Diagnostic Display Box 1 03670 TORO REELMASTER 5410 -D, 2WD, 35.5 hp Kubota Diesel $42,763.67 $42,76167 Engine, 100" Width of Cut, Work Lights Standard 5 03694 8 Blade Cutting Units (S' Dia.) 5 03668 Powered Rear Roller Brushes -1 XX -UE 1997 Jacobsen Tri King 1900 with 3291 hrs $300.00 ($300.00) -1 XX -UE 2003 Toro RM5500, 4WD with 3602hrs $1,700.00 ($1,700.00) -1 XX -UE 2000 )D 32356, 2WD with 2000 hrs $2,000.00 ($2,00(100) Equipment ($4,000.00) Price Subtotal $112,217.17 .875 %) $7,714.93 Price Subtotal $119,932.10 Optional Finance /Lease available through PNC Equipment Finance 5 Yr Term with 5 Annual Payments: CSC ($1.00 Buy -Out) Financing Option $26,088.83 Quoted Finance Payments based on $119,932.10 / Interest Rate of 4.3% / Subject to credit approval by PNC Equipment Finance/ $250.00 Doc Fee/ 1st Payment at delivery / Assumes an February 2012 Delivery • New Toro Equipment includes a Two -Year (2) Manufacture Warranty • Equipment set-up & delivery at no additional charge • Quote is valid for 30 days. Thank you for the opportunity to submit this quote. If you have any questions, please do not hesitate in contacting us. Bob Frank SCPS Outside Sales Representative 866 - 314 -5727 MTI Distributing, Inc. 4830 Azelia Ave N, Brooklyn Center, MN 55429 Page 1 of 2 Applicable Taxes not Included. Financing costs per $1000 under $100,000 is $18.60. Over $100,000 rate drops a little Prepared For: FRONTIER AG & TURF Quote Id: 6301020 12040 POINT DOUGLAS DR SOUTH HASTINGS, MN 55033 LARRY GORMAN - Phone: 651 -437 -7747 JoHr4 ACRE Fax: 651 -437 -3483 Quote ld :6301020 Customer: RIVER OAKS MUNICIPAL GOLF COURSE Applicable Taxes not Included. Financing costs per $1000 under $100,000 is $18.60. Over $100,000 rate drops a little Prepared For: Prepared By: Quote Id: 6301020 RIVER OAKS MUNICIPAL GOLF COURSE LARRY GORMAN - Created On: February 02, 2012 6225 LAMAR AVE S 12040 POINT DOUGLAS DR SOUTH Last Mod'+fted On : February 2, 2012 COTTAGE GROVE, MN 55016 HASTINGS, MN 55033 Expiration Date: February 09, 2012 TORO 5500D Phone: 651 -437 -7747 $ 500.00 payoff larryg@frontieragtu rf.com $ 0.00 Equipment Summary Selling Price Qty Extenclell JOHN DEERE 8800 TenrramCut Rough $ 42,492.78 X 1 = $ 42,492.78 Mower Equipment Total $ 42.492.78 Trade In Summary Qty Each Extended TORO 5500D 1 $ 500.00 $ 500.00 payoff $ 0.00 Total Trade Allowance $ 500.00 Trade I n Tota $ 500.00 Quote Summary Equipment Total $ 42,492.78 Trade In $ (500.00) Delivery $ 0.00 SubTotal $ 41,992.78 Total $ 41,992.78 Down Payment (0.00) Rental Applied (0.00) Balance Due $ 41,992.78 Salesperson : X FTTZ .. CONFIDENTIAL rir fll a tt'!# Applicable taxes not included. Financing costs per $1000 under $100,000 is $18.60. Over $100,000 the rate drops a little Prepared For: prepared By: FRONTIER AG & TURF River Oaks LARRY GORMAN 12040 POINT DOUGLAS DR SOUTH HASTINGS, MN 55033 MN 12040 POINT DOUGLAS DR SOUTH Phone: 651-437-7747 JOHN OESPE Fax: 651 -437 -3483 rir fll a tt'!# Applicable taxes not included. Financing costs per $1000 under $100,000 is $18.60. Over $100,000 the rate drops a little Prepared For: prepared By: Quote Id: 6300830 River Oaks LARRY GORMAN Created On: February 02, 2012 MN 12040 POINT DOUGLAS DR SOUTH Last Modified On : February 2, 2012 HASTINGS, MN 55033 Expiration Date: February 09, 2012 Phone: 651 -437 -7747 Trade In Summary larryg @frontieragturfcom Extended �qui pment Summary Selling Price s ,. nd JOHN DEERE 7500 PrecisionCut Fairway $ 42,556.44 X 1 — $ 42,556.44 Mower Equipment Total $ 42,556.44 Trade In Summary Qty Each Extended 2000 JOHN DEERE 32356 TURF SYSTEM 11- 1 $ 3,000.00 $ 3,000.00 TC3235T010280 Pay Off $ 0.00 Total Trade Allowance $ 3,000.00 Trade In Total $ 3,000.00 Quote Summary Equipment Total $ 42,556.44 I Trade In $ (3,000.00) Delivery $ 0.00 SubTotal $ 39,556.44 Total $ 39,556.44 Down Payment (0,00) Rental Applied (0.00) Balance Due $ 39,556.44 Salesperson: X _ Accepted By: X r0NPnrNT1AI y i e. OAKS MUNICIPAL GOLF COURSM Applicable Taxes not included. Financing costs per $1000 under $100,000 is $18.60. Over $100,000 rate drops a little Prepared For: Prepared By: Quote Id: 6301033 RIVER OAKS MUNICIPAL GOLF COURSE LARRY GORMAN created On: February 02, 2012 6225 LAMAR AVE S 12040 POINT DOUGLAS DR SOUTH Last Modified On : February 2, 2012 COTTAGE GROVE, MN 55016 HASTINGS, MN 55033 Expiration Date: February 09, 2012 Phone: 651 -437 -7747 larryg@frontieragturf.com Equipment Summary Selling Price Qty Extended JOHN DEERE 7400 TerrainCut Trim and $ 31,484.70 X 1 = $ 31,484.70 Surrounds Mower EquipmentTotai S31,434.70 Trade In Summary Qty Each Extended 1997 JACOBSON 1900D 1 $ 1,000.00 $ 1,000.00 Payoff $ 0,00 Total Trade Allowance $ 1,000.00 Trade In Total $ 1,000.00 Quote Summary FRONTIER AG & TURF Equipment Total 12040 POINT DOUGLAS DR SOUTH HASTINGS, MN 55033 Trade in Phone: 651 -437 -7747 ,.SOON OFF-RE Fax: 651 -437 -3483 y i e. OAKS MUNICIPAL GOLF COURSM Applicable Taxes not included. Financing costs per $1000 under $100,000 is $18.60. Over $100,000 rate drops a little Prepared For: Prepared By: Quote Id: 6301033 RIVER OAKS MUNICIPAL GOLF COURSE LARRY GORMAN created On: February 02, 2012 6225 LAMAR AVE S 12040 POINT DOUGLAS DR SOUTH Last Modified On : February 2, 2012 COTTAGE GROVE, MN 55016 HASTINGS, MN 55033 Expiration Date: February 09, 2012 Phone: 651 -437 -7747 larryg@frontieragturf.com Equipment Summary Selling Price Qty Extended JOHN DEERE 7400 TerrainCut Trim and $ 31,484.70 X 1 = $ 31,484.70 Surrounds Mower EquipmentTotai S31,434.70 Trade In Summary Qty Each Extended 1997 JACOBSON 1900D 1 $ 1,000.00 $ 1,000.00 Payoff $ 0,00 Total Trade Allowance $ 1,000.00 Trade In Total $ 1,000.00 Quote Summary Equipment Total $ 31,484.70 Trade in $ (1,000.00) Delivery $ 0.00 SubTotal $ 30,484.70 Total $ 30,484.70 Down Payment (0.00) Rental Applied (0.00) Balance Due $30,484.70 Salesperson : X _ Accepted By:X mNFInFNT1A1