Title
RESOLUTION AUTHORIZING THE PURCHASE OF A 2015 JOHN DEERE 135G EXCAVATOR IN THE AMOUNT OF $124,831.
Body
CITY PROPOSAL:
RESOLVED, that the proper city officials are hereby authorized to purchase a 2015 John Deere Excavator, model 135G, from Nortrax, Inc., for an amount not to exceed $124,831, payable from fund no. 535-500-1905-5580 (stormwater, public works & utilities-capital (incl deprec/debt svc), capital equipment.
Statement of Purpose
STATEMENT OF PURPOSE: This resolution authorizes the purchase of a John Deere excavator for public works and utilities utility operations division. The machine will be unique to the utility operations fleet, and will enable the summer storm crew to continue effectively ditching stormwater pathways through the city. This machine will allow for a dedicated crew for ditching and catch basin repair during the construction season, increasing productivity. The department has rented this unit for the past two summers.
This purchase is against Minnesota State contract release E-95, contract number 109822, which provides a 31.5% to 33.5% discount off the list price of the equipment. In addition to the discount, the city will receive a credit for a portion of the rental payments paid to Nortrax in the amount of $43,918. The discounted state pricing combined with the credit dropped the total price to a point where the purchase of the machine will fit into the division’s budgeted capital purchases for 2017.