Title
RESOLUTION AUTHORIZING THE PURCHASE OF 2025 JOHN DEERE 75P EXCAVATOR FROM MCCOY CONSTRUCTION & FORESTRY, INC., IN THE AMOUNT OF $199,630
Body
CITY PROPOSAL:
RESOLVED, that the proper city officials are hereby authorized to contract with McCoy Construction & Forestry, Inc. for the purchase of a 2025 John Deere 75P excavator in the amount of $199,630, payable as follows:
$38,290.00 510-500-1910-5580 (water, Public Works and Utilities, rolling stock, capital equipment)
$38,290.00 520-500-1910-5580 (gas, Public Works and Utilities, rolling stock, capital equipment)
$25,525.00 530-500-1910-5580 (sewer, Public Works and Utilities, rolling stock, capital equipment)
$25,525.00 535-500-1910-5580 (stormwater, Public Works and Utilities, rolling stock, capital equipment)
$72,000.00 110-500-1920-5580 (general, Public Works and Utilities, street maintenance, capital equipment)
Statement of Purpose
STATEMENT OF PURPOSE: This resolution authorizes the purchase of a 2025 John Deere 75P Gen A excavator in the amount of $199,630.
This purchase replaces unit 1223 and is within the budget set for capital equipment for Utility Operations. Originally, Utility Operations was going to trade in unit 1223 for $30,000 and unit 1240 for $42,000 for a purchase amount after trade-in of $127,630. Unit 1223 is 11 years in frontline service with 6,210 hours, and unit 1240 is 11 years in frontline service with 4000 hours. Both of these units have reached the end of their frontline useful life per 2015 fleet study. However, Street Maintenance is able to utilize these units on a seasonal and intermittent use schedule that will significantly prolong the life of the machines with considerable cost savings to purchasing new. Street Maintenance is paying the trade-in value of $72,000 toward the purchase of this vehicle and will keep both units 1223 and 1240.
This purchase is against Minnesota State Contract 238714, Release E-95(5).