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1d. 2012 CIP Purchase: Tractor-Broom-Snow Blower0 CITY OF CgANgASSEN 7700 Market Boulevard PO Box 147 Chanhassen, MN 55317 Administration Phone: 952.227.1100 Fax: 952.227.1110 Building Inspections Phone: 952.227.1180 Fax: 952.227.1190 Engineering Phone: 952.227.1160 Fax: 952.227.1170 Finance Phone: 952.227.1140 Fax: 952.227.1110 Park & Recreation Phone: 952.227.1120 Fax: 952.227.1110 Recreation Center 2310 Coulter Boulevard Phone: 952.227.1400 Fax: 952.227.1404 Planning & Natural Resources Phone: 952.227.1130 Fax: 952.227.1110 Public Works 7901 Park Place Phone: 952.227.1300 Fax: 952.227.1310 Senior Center Phone: 952.227.1125 Fax: 952.227.1110 Web Site www.ci.chanhassen.mn.us MEMORANDUM TO: Paul Oehme, Public Works Director /City Engineer FROM: Charlie Siegle, Equipment Superintendent DATE: July 23, 2012 m SUBJECT: Purchase of 2012 CIP Equipment: Tractor, Broom and Snow Blower PW016III PROPOSED MOTION "The City Council approves purchase of a John Deere 5225 M tractor, broom and snow blower in the amount of $80,166.55 with trade in of the City's 1997 John Deere 5500 tractor." City Council approval requires a simple majority vote of those present. DISCUSSION Annually, the City considers replacement of equipment that has reached its average life expectancy and is showing signs of needing major maintenance. It has been the City's practice to replace this equipment before major repairs are required. DISCUSSION /JUSTIFICATION PARK DEPARTMENT — TRACTOR, BROOM AND SNOW BLOWER The 1997 John Deere 5500 Tractor #427 is 15 years old. This tractor is used for sweeping skating rinks and streets and for general park maintenance. The tractor is in need of expensive engine repairs. The engine is burning oil and will most likely need an overhaul. The cab is rusting out and needs major body work. The trade -in value of this tractor is approximately $21,000. Staff has checked recent auction prices for similar tractors and feels trading in the tractor is a better value for the City. This tractor was planned to be replaced in 2013, however, staff is requesting this purchase be moved up 6 months to purchase a 2012 model tractor. The 2013 tractors will be equipment with added EPA emissions equipment that will add over $5,000 to the purchase price of the tractor. Also by purchasing this tractor in 2012 it will be available for the 2012/2013 winter. Staff is also concerned that expensive engine repairs may be needed if the tractor is not replaced soon. The 2012 Capital Replacement fund vehicle purchases were under spent by $45,905. These savings come from the replacement purchases of the Wood Chip /Flooding Chanhassen is a Community for Life - Providing for Today and Planning for Tomorrow Paul Oehme Purchase of 2012 CIP Equipment: Tractor, Broom and Snow Blower July 23, 2012 Page 2 truck and the Park Dept.'s pickup trucks and mower. Staff is requesting to use these unspent funds in the 2012 budget and use a portion of the budgeted amount in the 2013 CIP tractor purchase from the capital replacement fund to pay for the tractor replacement. PRICING PARK DEPARTMENT — TRACTOR, BROOM AND SNOW BLOWER 2012 John Deere 5225M Tractor (State Contract bid) $81,377.55 Sweepster 7 -foot Front Broom $11,289.00 Schweiss 9 -foot Front Mount Snow Blower $ 9,500.00 Trade John Deere 5500 and Erskine Snow Blower ($22,000.00) Total $80,166.55 c: CIP Page g: \eng \public \pw016 vehicles and equipment \bkgd 072312 cip purchase - tractor. doc CITY OF CHANHASSEN CARVER AND HENNEPIN COUNTIES, MINNESOTA DATE: July 23, 2012 RESOLUTION NO: 2012- MOTION BY: SECONDED BY: A RESOLUTION FOR PURCHASE OF 2012 CIP EQUIPMENT (TRACTOR, BROOM, SNOW BLOWER) PWO16III 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, these purchases are included in the 2012 CIP. The attached report shows the total amount of each item bid with possible additional costs for taxes and licenses on the vehicle. NOW, THEREFORE, BE IT RESOLVED that the Chanhassen City Council hereby approves the 2012 CIP purchases (tractor, broom, and snow blower). Passed and adopted by the Chanhassen City Council this 23 day of July, 2012. ATTEST: Todd Gerhardt, City Manager Thomas A. Furlong, Mayor YES NO ABSENT Capital Improvement Program 2012 rhru 2016 City of Chanhassen, MN Project# EQ =121 Project Name Tractor Replacement Account #1 400 - 4111 -0705 Account #2 Descripti rhis item allows for the replacement of the 1997 John Deere 5500 ( #427). Account #3 Account #4 Department Major Equipment Contact Todd Hoffman Type Equipment Useful Life Category Park Priority n/a Total Project Cost: $95,000 Justification This tractor is used to sweep hockey and family skating rinks and trails and parks in the summertime. It is also used by the street department to sweep roads in the spring. This tractor is 15 years old and the cab and fenders are showing a lot of rust. The motor is using oil and oil is blowing out the by pass. Expenditures 2012 2013 2014 2015 2016 Total Equipment 95,000 95,000 Total 95,000 95,000 Funding Sources 2012 2013 2014 2015 2016 Total Capital Replacement Equipme 95,000 95,000 Total 95,000 95,000 Budget Impact(other 53