Agenda Packets - 2014/01/13 - Laserfiche WebLink

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item No: 8B Meeting Date: January 13 2014 Staff began the process to replace this unit and soon discovered that cost has increased and the budget for 2013 did not reflect the actual cost. While discussing the replacement of this unit, Staff has also researched replacing the rough cut mower. A new mower will cut smoother and leave less ripping and tearing of smaller trees in which, now, some end up being a sharp stick. Staff also researched purchasing a new mower deck for this unit. By placing a mower deck on this unit and mowing more of the areas that are rough ground it will save wear and tear on the large turf mower # 440, for this unit is starting to show signs of heavy use and an increase in repairs. (This is not scheduled to be replaced until 2016.) Staff has been working with the vendor off the State of Minnesota Cooperative Purchase Contract (State Bid). The vendor has proposed that the City could save $10,000.00 by purchasing the demo unit. By approving this purchase now for 2014 the vendor will sell the City the demo unit and take the $10,000.00 off the quote. In the preliminary budget for 2014 there is money budget to replace this unit. Staff received the following quote from Equipment Distribution Management, Inc.: Base price of tractor with options $159,159.00 New Seppi rough cut mower $ 11,017.00 New 126" Deck Mower $ 17,500.00 Less 3% (State Contract Discount) $ 5,630.28 Minnesota contract price $182,045.72 Less trade-in $ 14,000.00 Less Demo unit $ 10,000.00 Total $158,045.72" *not including applicable licensing fees Recommendation: Staff recommends trading -in the AEBI TT70 Terratrac Tractor for a model TT240 AEBI tractor including options for a cost of $159,159:00. Staff also recommends purchasing a new Seppi Rev CF 2225 rough cut mower for $11,017.00 and 126" Lastec Batwing Mower for $17,500.00. With the trade-in value of the City owned AEBI at $14,000.00 along with an additional savings of $10,000.00 for purchasing a demo unit, and less ibe 3% State Contract discount of $5,630.28, the total, not including applicable licensing fees, is $158,045.72 to be funded from account 460-4360-7030