City Council Meeting Date: November 21, 2017
To: Mayor and City Council
City Administrator
From: Tim Behrendt, Streets and Parks Manager
Dave Bennett, Public Works Director
Title
Consider Motion to authorize the purchase of 2017 John Deere front-end loader
Body
Action Requested:
The Northfield City Council approves a Motion authorizing the purchase of a 2017 John Deere front-end loader from RDO Equipment Co. for the amount of $145,189.38.
Summary Report:
The Streets and Park Department is seeking authorization to purchase a 2017 John Deere 624K loader to replace a 2003 Caterpillar 938G loader. The current 938G Caterpillar loader is at a point where the hours and the age can still warrant a sizable trade-in-value at a time when operational maintenance is expected to increase. The John Deere 624K has the same specifications as the 938G Caterpillar. The existing Craig snowplow and wing would be installed on the new John Deere loader.
Alternative Options:
Council may choose not to replace the 2003 938G Caterpillar loader with a 2017 John Deere 624k loader. If this option is chosen, the maintenance allocation for the 2003 938G loader will need to be adjusted for future maintenance needs. In addition, the trade-in-value will decrease in the future.
Financial Impacts:
Staff will be utilizing the current State contract. The State bid options include a process for meeting all public bidding requirements by prior State solicitation processes. The state bid price of $145,189.38 includes the trade-in of the 2003 938G Caterpillar loader. Staff also received quotes for a Caterpillar 938M and a Case 721G loader. The quotes for these two loaders are $161,660 and $153,211, respectively. Both quotes also include the trade-in of the 2003 938G Caterpillar loader.
The replacement of 2003 938G Caterpillar loader is in the proposed 2018 Capital Equipment Plan for $175,000 and is included in the Vehicle Equipment replacement fund. The State contract is valid until the end of November 2017. The vendor is predicting a 5 - 9% increase on the State contract in 2018.
Payment for the front-end loader will occur in 2018.
Tentative Timelines:
If approved by City Council, staff will place the order for the 2017 John Deere 624K loader and will take delivery after the 2017-2018 snow season.