CCP 02-26-2008 - Laserfiche WebLink

Home Browse Search

Of x Report Number 08-061 OW BWAMAgenda Section VI -2 the city that works for you Report Date February 14, 2008 • Council Meeting Date February 226, 2008 REQUEST FOR COUNCIL CONSIDERATION ITEM DESCRIPTION: AUTHORIZATION TO PURCHASE A 2008 JOHN DEERE 544J WHEEL LOADER DEPARTMENT HEAD'S APPROVAL: (,M� CITY MANAGER'S APPROVAL: No comments to suunlement this Comments attached Recommendation: Authorize the purchase Ekqdfinancing of a 2008 John Deere 544J Wheel Loader from RDO Equipment, based upon Minnesota State Bid. Legislative History: Based upon the City of New Brighton's Fleet Management Plan replacement plan, the City purchased a John Deere 544H Wheel Loader in 2002. The current replacement plan for wheel loaders are on a 15 -year cycle. Explanation: The purpose of this item is to obtain Council authorization to purchase a 2008 John Deere 544.1 Wheel Loader and trade in our current unit, which is only six years old. The reasons that we are proposing this is first, the existing unit will require wheel and tire replacement within the next year. We will be required to replace not only the tires but the wheels too because they are filled with calcium chloride for weight/traction and the calcium chloride corrodes the steel wheels. We currently have a bid from a vendor other than RDO Equipment for $18,680.68 to do that work including parts and labor. Second, RDO Equipment has given us an offer to take our 6 -year old wheel loader in trade on a new unit for $49,831.35. In turn, RDO Equipment has offered New Brighton a program to trade the new wheel loader in every 2 -years for approximately $12,000, which is approximately half of the annual amount we Currently put away to fund the replacement unit. "Third, historically we have had some expensive repairs when keeping this type of unit for the full 15 -year cycle currently projected. With the proposed two-year trade in plan, we would only have to do the required fluid services. Everything else would be covered under the factory warranty. In the event this program would expire, the City would still own the wheel loader and revert back to the original 15 -year replacement plan. Financial Impact: This wheel loader will be purchased under Minnesota State Bid, Contract #L-331 (5), from RDO Equipment. Unit Price $117,626.00 Less Trade in Price S_70,836.00 Sub -total $ 46,790.00 Sales Tax $ 3,041,35 Total Price $ 49,831.35 Notes: The acquisition costs may not be the final costs based on other added equipment, i.e. City decals will be purchased separately and are estimated to cost $250.00.