2012-03 CITY OF CHANHASSEN
CARVER AND HENNEPIN COUNTIES, MINNESOTA
DATE: January 9, 2012 RESOLUTION NO: 2012 -03
MOTION BY: Tjornhom SECONDED BY: McDonald
A RESOLUTION FOR PURCHASE OF A WHEEL LOADER
PW016III
WHEREAS, annually, the City considers replacement of vehicles and equipment that have
reached their average life expectancy and are showing signs of needing major maintenance; and
WHEREAS, it has been the City's practice to replace these vehicles and equipment before
major repairs are required; and
WHEREAS, this purchase is included in the 2012 CIP. The attached report shows the total
amount of the wheel loader.
NOW, THEREFORE, BE IT RESOLVED that the Chanhassen City Council hereby
approves the purchase as attached hereto.
Passed and adopted by the Chanhassen City Council this 9 day of January, 2012.
I
AT Fp ST: 1 '
, 4 .,
t
Todi erh. . , Manager Thomas A. Furlong, Mayor
YES NO ABSENT
Furlong
Ernst
Laufenburger
McDonald
Tjornhom
MEMORANDUM
TO: Paul Oehme, Public Works Director /City Engineer /J.
CITY FROM: Charlie Siegle, Equipment Superintendent yy
CHANIIASSEN DATE: January 9, 2012
7700 Market Boulevard
PO Box 147 SUBJECT: Consider Purchase of Wheel Loader — PW016iii
Chanhassen, MN 55317
PROPOSED MOTION
Administration
Phone: 952.2271100 "The City Council approves the purchase of a wheel loader."
Fax: 952.2271110
City Council approval requires a simple majority vote of the City Council present.
Building Inspections
Phone: 952.2271180
Fax: 952.2271190 DISCUSSION
Engineering Annually, the City considers replacement of vehicles that have reached their average life
Phone: 952.2271160 expectancy and are showing signs of needing major maintenance. It has been the City's
Fax: 952.2271170 practice to replace these vehicles before major repairs are required.
Finance DISCUSSION /JUSTIFICATION
Phone: 952.2271140
Fax: 952.2271110 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: 952.2271120 significant structural rusting, it is in need of a complete break overhaul, the hydraulic system
Fax: 952.2271110
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: 952.2271400 emergencies. Staff is proposing to replace the 920 loader and use the 936 loader as the shop
Fax: 952.2271404 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: 952.2271130 The trade in value of the 1970 Caterpillar wheel loader is $24,830. Staff is proposing to
Fax: 952.2271110 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 minimum price increase of 6% would be added on to the loader due to Tier 4 federal
Phone: 952.2271300
Fax: 952.2271310 emissions requirements.
Senior Center BIDS AND QUOTES
Phone: 952.2271125
Fax: 952.2271110 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
M -:
Capital Improvement Program 2012 thru 2016
Department Major Equipment
P J •..
City of Chanhassen, MN Contact Paul Oehme
Type Equipment
Project # Q -126 Useful Life
Project Name Wheel Loader 5. `
Category Street Equipment
Account #1 400 - 0000 -4705 Account #3 Priority n/a
Account #2 Account #4
Description ( Total Project Cost: $170,000
This equipment request is to replace the 40 year old 920 Caterpillar wheel loader.
Justification 1
:1c
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
1
Budget Impact/Other
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1
1
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