The Park and Recreation Department will use a loan from JPMorgan Chase Bank to purchase six greens mowers, one spray rig, one sand bunker rake, one utility vehicle, one rotary rough unit and one excavator that will be used to maintain the grounds at the Pecan Valley, Meadowbrook and Sycamore Creek golf courses.

These 11 pieces of equipment will replace units that are 10 years or older and can no longer be economically maintained and will be sold at auction. An excavator is part of this purchase and the use of this piece of equipment will be shared between all three of the City's golf courses, utilized primarily for repair of irrigation leaks thus saving the division rental costs and time.

The new units meet required specifications and are expected to operate satisfactorily during their service lives of 15 years for each unit. Warranty information, manufacturer's Statement of Origin and original sales invoice will accompany the new units upon delivery.

The loan will be for a period of 60 months with an estimated 2.754 percent interest charge beginning on or about July 13, 2017.

DELIVERY - Delivery of the agricultural equipment will occur on or about July 13, 2017.

BID TABULATION - See attached Bid Tabulation.

PRICE ANALYSIS – Deere & Company is offering 21 percent discount, John Deere Shared Services is offering 29 percent discount and Professional Turf Products, L.P., is offering 25 percent off the catalog pricelist maintenance equipment. The City has no comparable purchase history matching these various configurations and model. Staff has reviewed the prices and found them to be fair and reasonable based on current market values.

COOPERATIVE PURCHASE - State law provides that a local government purchasing an item(s) under a Cooperative Purchasing Agreement satisfies state laws requiring that the local government seek competitive bids for purchase of the item(s). BuyBoard contracts have been competitively bid to increase and simplify the purchasing power of government entities.

ADMINISTRATIVE CHANGE ORDER - An administrative change order or increase may be made by the City Manager in the amount up to $80,611.00 and does not require specific City Council approval as long as sufficient funds have been appropriated.

M/WBE OFFICE - A waiver of the goal for MBE/SBE subcontracting requirements was requested by the Purchasing Division and approved by the M/WBE Office, in accordance with the BDE Ordinance, because the purchase of goods or services is from sources where subcontracting or supplier opportunities are negligible.

LEASE TERM - The City will acquire the Pro Gator, the Bunker Field Rake and the Select Sprayer from Deere & Company, the Greensmaster, the Kubota Workman and the Groundmaster from Professional Turf Products, LP, using BuyBoard Contract No. 447-14 and the Compact Excavator from John Deere Shared Services Inc. d/b/a John Deere Construction Retail Sales, using BuyBoard Contract No. 515-16.

REVENUE NOTE - The lease of this equipment will allow for the continued required turf grass maintenance of the courses, thus providing a quality playing surface for the paying customers that utilize the facilities. Without this equipment, the City risks not achieving maximum revenues due to subpar turf conditions. The FY2016–17 adopted budget includes funds to underwrite the cost of the lease with purchase options as part of the Golf Division's golf equipment replacement plan.

Pecan Valley, Meadowbrook and Sycamore Creek golf courses are located in COUNCIL DISTRICTS 3, 4, and 8, respectively, and serve ALL COUNCIL DISTRICTS.