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HomeMy WebLinkAbout2014-04-16 PACKET 04.G.Year 2014 2015 2016 2017 2018 2019 2020 2021 2022 Table 2-New Mower Ownership Cost Cost Est. Maintenance Cost Resale Value 00 $2,500 $15,600 $2,625 $14,664 52.756 513.784 $3,039 53.191 $12,180 Cost $3,561 $3,816 5% annualinaease 6% annualdedine Figure 2 Ownership Cost of New vs Existing Mower Sso,000 59,000 Ss,000 5�,000 56,000 $5,000 $4,000 $3,000 $2,000 $1,000 $� .. � . . . . . . . , 2014 2015 2016 2017 2018 2019 2020 2021 2022 �—Existing Mower —New Mower Alternative Options Analvsis Several leasing options were considered in regards to replacing the mower. Staff reviewed 24 and 36 month leasing options. The figure below depicts the total cost (current and new) versus termed leasing over the next nine years. There appears to be financial benefit for the City to purchase the equipment rather than leasing. Figure 3 $9o,aoo , $80,000 ' $70,000 ' $60,000 ` " $50,000 ` � 0 � $40,000 ��� $30,000 .:: $20,000 - $10,000 " $- �Total Leasing Cost (24 Month Periods) TotalLeasing Cost(36 Month Periods) �Total Cost Current Mower (lost resale value and maintenance included) °�Total Cost New Mower (Capital costand maintenance included) Recommended Purchases In consideration of the analysis above, staff is recommending the following purchases: John Deere 1445 6ft mower deck John Deere Rotary Broom John Deere Cozy Cab John Deere Snow Blower $22,608.94 $3,672.32 $6,229.00 $4,586.24 Snow Blower Attachment for Bobcat $5,939.40 Estimated trade in of current mower -$6,000.00 Total $37,035.90 Budgeted Amount $40,200.00 All pieces of equipment are on the Minnesota State Contract. The mower, broom, cab and blower will be purchased from Frontier. The snow blower for the Bobcat will be purchased from Tri-State Bobcat. Alternative Analysis Cost Comparison Recommendation: Consider approving the purchase of a mower, cab, blower, broom and a blower for the Bobcat for a combined purchase price of $43,035.90. 2014 2015 2016 2017 2018 2019 2020 2021 2022 Year