1c. Consider Purchase of Wheel Loader40
MEMORANDUM
Phone: 952.227.1160
TO: Paul Oehme, Public Works Director /City Engineer
CITY OF
FROM: Charlie Siegle, Equipment Superintendent
CHANH u � NU � C( �� N i
SSE
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Phone: 952.227.1140
DATE: January 9, 2012
7700 Market Boulevard
The Street Department's 1970 920 Hz Caterpillar Loader to be replaced will be 41 years old
PO Box 147
SUBJECT: Consider Purchase of Wheel Loader — PW016iii
Chanhassen, MN 55317
facility and for cleaning out around hydrants after snow events. The bottom of the unit has
Administration
Phone: 952.227.1100
Fax: 952.227.1110
Building Inspections
Phone: 952.227.1180
Fax: 952.227.1190
PROPOSED MOTION
"The City Council approves the purchase of a wheel loader."
City Council approval requires a simple majority vote of the City Council present.
Engineering
Annually, the City considers replacement of vehicles that have reached their average life
Phone: 952.227.1160
expectancy and are showing signs of needing major maintenance. It has been the City's
Fax: 952.227.1170
practice to replace these vehicles before major repairs are required.
Finance
DISCUSSION /JUSTIFICATION
Phone: 952.227.1140
Fax: 952.227.1110
The Street Department's 1970 920 Hz Caterpillar Loader to be replaced will be 41 years old
in 2012. This loader is used mainly for loading trucks with material at the Public Works
Park &Recreation
facility and for cleaning out around hydrants after snow events. The bottom of the unit has
Phone: 952.2 1120
significant structural rusting, it is in need of a complete break overhaul, the hydraulic system
Fax: 952.227
is poor, and the differential is leaking.
Recreation Center
2310 Coulter Boulevard This piece of equipment needs to be reliable for loading trucks with salt during snow and ice
Phone: 952.227.1400 emergencies. Staff is proposing to replace the 920 loader and use the 936 loader as the shop
Fax: 952.227.1404 loader. The 936 loader is 25 years old and is used primarily during the winter on a
snowplow route. The purchased loader will be used on the 936 loader snowplow route and
Planning & comes equipped with a snowplow and wing to plow the city streets.
Natural Resources
Phone: 952.227.1130 The trade in value of the 1970 Caterpillar wheel loader is $24,830. Staff is proposing to
Fax: 952.227.1110 trade in the 920 loader instead of having the loader sold at action. Staff feels this is the
better financial option based on recent auction prices. The proposed purchase of the loader
Public Works is a 2011 model Caterpillar 928 Hz. If the City waits to purchase a 2012 loader model, a
7901 Park Place
Phone: 952.227.1300 minimum price increase of 6% would be added on to the loader due to Tier 4 federal
Fax: 952.227.1310 emissions requirements.
Senior Center BIDS AND QUOTES
Phone: 952.227.1125
Fax: 952.227.1110 The following quote has been received from a State bid for a Wheel Loader:
Web Site STREET DEPARTMENT — WHEEL LOADER
www.ci.chanhassen.mn.us
2011 Caterpillar 928Hz Wheel Loader with Henke 12'
Plow and 10' Side Wing, Sales Tax, and Trade of Caterpillar 920 $165,321.51
Attachment
g:\eng \public \pw016 vehicles and equipment \purchase cip vehicles - loader 010912.doc
Chanhassen is a Community for Life -Providing for Today and Planning for Tomorrow
Capital Improvement Program 2012 rhru 2016
City of Chanhassen, MN
Project # EQ -126
Project Name wh Loader
Account #1 400 - 00004705
Account #2
Description
Phis equipment request is to replace the 40 year old 920 Caterpillar wheel loader.
Account #3
Account #4
Department
. Major Equipment
Contact
PaulOehme
Type
Equipment
Useful Life
Category
Street Equipment
Priority
n/a
Total Project Cost: $170,000
Justification
The 920 Caterpillar wheel loader was purchased in 1971 and will be 41 years old in 2012. This loader is mainly used at the shop for loading
trucks with material, but it is also used for cleaning out around hydrants after snow events. The bottom of the unit has significant structural
rusting, it is in need of a complete brake overhaul, the hydraulic system is poor and the differential is leaking. This piece of equipment needs to be
reliable for loading trucks with salt during ice and snow emergencies. Staff is proposing to replace the 920 Caterpillar and use the 936 Caterpillar
loader as the shop loader. The 936 Caterpillar loader is 25 years old. The loader replacement for the 920 Caterpillar will be used on a plow route
that is currently done by the 936 Caterpillar. Staff feels trading in the 920 Caterpillar loader at this time is a better option than having the loader
sold at auction. If this purchase is delayed any longer, a minimum of 6% will be added to the purchase price of a new loader because of new
required emissions equipment.
Expenditures 2012 2013 2014 2015 2016 Total
Equipment 170,000 170,000
Total 170,000 170,000
Funding Sources 2012 2013 2014 2015 2016 Total
Capital Replacement Equipme 170,000 170,000
Total 170,000 170,000
Budget Impact/Other
W .
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