HomeMy WebLinkAbout2014-04-16 PACKET 04.G.Year
2014
2015
2016
2017
2018
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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
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