Discussion:
The replacement of three mowers (Nos. sk1312, sk1313 and sk1314) are included in the 2020 Capital Improvement Plan (see attached CIP sheets Equip-20-1891 and Equip-20-463). The mowers are being purchased under the State of Minnesota Contract No. 150842 through Kibble Equipment. Quotation forms are attached and are consistent with the state contract pricing.
The city has trade-in agreements with Kibble Equipment for the three used John Deere 1570 Mowers. The agreements prescribe trading every two years for $4,000.00 which includes up to 260 hours per mower. If the hours are exceeded, a charge of $12.00 per hour over 260 is added. The mowers currently have 498 hours, 727 hours and 610 hours. The total amount of overage hours is 1055 hours, which results in an additional fee of $12,660.00. The total equipment price is $12,000.00 plus the overage charge for hours resulting in a net total purchase price of $24,660.00.
Note that a fourth mower was added in late 2019 that will help balance and lower the overall equipment hours.