FSD3 Grass Cutting Cost Analysis January 2015 Purpose: The purpose of this study is to analyze the benefits & costs of using contracted services for grass cutting vs using in-district employees & equipment. Method: In-District Grass Cutting - Collected data shall include the costs associated with grounds equipment purchase & repair (mower, weed trimmers, etc.), fuel costs (diesel fuel & gas), district groundsman salary & fringe benefits, etc. Also included will be consideration for the hours & hourly costs used by school custodians on tasks such as weed trimming, etc. Contracted Grass Cutting Services – A “Request for Proposals” will be issued for grass cutting services, including “weed trimming” or “weed eating” as commonly referred to. The propo sal will be thoroughly evaluated with the best overall proposal being accepted and used as part of the analysis. Evaluation factors shall include price, performance history, etc. In- District Grass Cutting Data Shall Include: Item (Annual Costs) Total Cost For FY 13/14 District Groundsman Salary & Fringe $28,085 Sparrow & Kennedy Tractor Costs Related to Grass Cutting $12,470 Coker Oil Company – Diesel Fuel & Ethanol Free Gas $4,464 Purchases Related to Grass Cutting FUEL MAN - Fuel Costs for 1999 Ford Truck $1,691 (Groundsman’s Truck) Total Annual “Operating” Costs $46,710 Estimated Custodial Man Hours for Weed Trimming (Average District Wide Time Estimate): 10 Mos. / Yr. X 4 wks. / Mo x15 Hrs. / week average x $10 / hr. avg w/ fringe = $6000 per year Quote for New District Mower: Total Purchase Cost - $ 29,838.52 Annual Governmental Lease Costs $ 11,529.57 per year (~ $11,530 per year) Lease Term (# Years) 3 Years (Total cost after Lease = $34,589.71 Total Annual Costs Associated with “In - District” Grass Cutting - $ 64,240 (~$64,500/ Yr. or $5375/ Mo) 1 | P a g e
Summary of Submitted Proposals & In-District Costs: Proposals submitted by Vendors ranged from $66,000 to $67,000 per year, as compared to the In- District annual cost of $64,500 per year. On a monthly basis, the lowest vendor proposal is $5,500 per month as compared to In-District costs of $5375 per month, which is only a $125 per month difference. Recommendation: I recommend that we accept this proposal for the following reasons: Hiring a district Groundsman who is qualified for the position, who successfully completes the various background checks, who possesses the work ethic, and who will work for the salary that the District is capable of providing will be a difficult task; as evident from recent maintenance department and custodial vacancies that have been filled. Reduction / elimination of workmen’s compensation & liability claims by elimi nation of this position. This position requires a significant amount of strenuous work in extreme weather conditions. Contracting these services will pass most, if not all, of these risks to the Vendor. Much of this grass cutting can be conducted before or after normal school hours, thereby reducing the potential for accidents resulting from objects (rocks, gravel, wire, etc.) being projected from the mower. Also any vehicles or property damaged by the Vendor’s equipment will be repaired at the V endor’s expense instead of the District’s. An exact amount can be budgeted over the next 3 – 5 years based on this proposal price. The risk of fluctuations due to fuel price increases, unforeseen equipment repairs, etc. are passed to the Vendor. Depending on these fluctuations, the Districts costs could increase greatly. The vendor will have two mowers and operators available to cut the grass as needed. This will prove to be extremely beneficial during times of heavy rainfall and fast growth when it is difficult for 1 mower to meet the grass cutting needs. Custodians spend a significant amount of time during the year trimming weeds or grass around the schools. This work is included in the proposal; therefore this time becomes available for custodians to work in other areas. This is especially critical during the summer months while custodians are extremely busy working inside of schools. There is not sufficient time for custodians to regularly and properly perform this work during this time. (NOTE: Custodians will be still be responsible for the maintenance and care of flower beds.) There will also be a reduction in Administrative & Supervisory costs by the elimination of the District Groundsman position. Monthly fees paid to a vendor and the supervision required for a vendor are significantly less than the costs / time for an employee. 2 | P a g e
Current Grounds Equipment (Mowers and Weed Trimmers) – The larger John Deere 1545 mower should be sold by auction (public or sealed bid) during February or March while many vendors are purchasing equipment for the upcoming grass cutting season. This mower has a significant amount of use hours and should be sold to avoid further repairs. The smaller John Deere Zero Turn mower should be kept for “backup” purposes in the event that last minute notification is received for grass cutting due to a special event, etc. This mower is relatively new and is in excellent condition. Keeping this mower in the District’s fleet will cost very little, if any. The sale value of this unit would be significantly less than the value of maintaining the mower for use by the District when needed. The weed trimmers should be kept for similar reasons and also because this proposal does not include the maintenance of the District’s flower beds . The revenue generated from the sale of these items will also be minimal. Analysis and Recommendation Presented By: Jay Alexander 1-8-15 3 | P a g e
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