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ITEM 4.6B Fleept Purchase John Deere 5425a lutSTe F o MINNESOTA C DEPARTMENT INFORMATION Request for City Council Action ORIGINATING DEPARTMENT REQUESTOR: MEETING DATE: Public Works Street Operations Manager Lamson January 14, 2019 PRESENTER(s) REVIEWED BY: ITEM #: Consent City Administrator/Finance Director Flaherty 4.613 STRATEGIC VISION MEETS: THE CITY OFrOTSEGO: X Is a strong organization that is committed to leading the community through innovative communication. IS A PUBLIC HEARING REQUIRED? Has proactively expanded infrastructure to responsibly provide core services. No Is committed to delivery of quality emergency service responsive to community needs and expectations in a cost-effective manner. The 2019 Fleet CIP includes the replacement of the City's 2006 5425 John Deere tractor. This tractor has Is a social community with diverse housing, service options, and employment opportunities. assisting with street sweeping. Is a distinctive, connected community known for its beauty and natural surroundings. AGENDA ITEM DETAILS RECOMMENDATION: City staff is recommending that the City Council approve the purchase of a tractor equipped for sweeping, roadside mowing, and snow plowing. ARE YOU SEEKING APPROVAL OF A CONTRACT? IS A PUBLIC HEARING REQUIRED? No No BACKGROUND/JUSTIFICATION: The 2019 Fleet CIP includes the replacement of the City's 2006 5425 John Deere tractor. This tractor has approximately 3,610 hours on it and its primary duties are roadside mowing, gravel road compacting and assisting with street sweeping. Staff is making the recommendation to upgrade the tractor from a 5425 John Deere to a 6130 John Deere. The 6130 -size tractor is much better equipped to handle the weights and stresses of the mowers and compactors that are used in the operations of this tractor. In addition to being a physically larger tractor, it will have an additional 56 horsepower to handle the work. The recommendation is to replace the 2006 5425 tractor, mowers and broom with the larger 6130 tractor equipped with new mower units, 8' broom and a front hitch capable of handling a box style plow for snow removal operations. Equipping the tractor with these implements allows staff to better utilize the tractor throughout the year. Staff requested state contract quotes from Minnesota Equipment Inc., Diamond Mowers, Inc., and Ziegler, Inc. for the outfitting of this tractor. Staff was not able to equip the tractor direct from one manufacturer with all of the working pieces and had to deal with these three manufacturers on the respective implements. The total state contract purchase price for the tractor is $165,007.16. Staff received a trade-in value from Diamond Mowers, Inc. for $25,000 which lowers the net purchase price to $140,007.16 which is below the 2019 budgeted amount of $146,218. Staff will be placing the tractor on the Govdeals auction site to attempt to obtain more than the $25,000 trade-in offer. Staff is recommending that the City purchase the tractor and its respective implements from Minnesota Equipment, Inc., Diamond Mower, Inc., and Ziegler, Inc. for $165,007.16. The Public Works Subcommittee was presented with this information at its December 19th meeting and recommended that it be placed on consent agenda. Staff was notified by MN Equipment, Inc. on Jan.7th that the quoted price was from the older state contract price and that the current state contract price is actually $1,891.64 higher than what was originally quoted. This document has been modified to reflect that change in pricing. SUPPORTING DOCUMENTS ATTACHED: • Quote — Minnesota Equipment, Inc. • Quote — Diamond Mowers, Inc. • Quote — Ziegler, Inc. POSSIBLE MOTION PLEASE WORD MOTION AS YOU WOULD LIKE ITTO APPEAR IN THE MINUTES: Motion to approve the purchase of a John Deere 6130 Tractor equipped with sweeping broom from Minnesota Equipment Inc., for $122,228.16, to approve the purchase of respective mowing equipment from Diamond Mowers, Inc., for $35,429.00, and to approve the purchase of respective snow plowing equipment from Ziegler, Inc., for $7,350.00. Motion to authorize City staff to place the 2006 5425 John Deere tractor on an auction site, further directing staff to accept the $25,000 from Diamond Mowers, Inc., or the auction proceeds, whichever is reater. BUDGET INFORMATION FUNDING: - BUDGETED: Fund 206 — Revolving Capital Equipment Yes Quote Id: 18770230 ALL PURCHASE ORDERS MUST BE MADE OUT TO (VENDOR): Deere & Company 2000 John Deere Run Cary, NC 27513 FED ID: 36-2382580; DUNS#: 60-7690989 ALL PURCHASE ORDERS MUST BE SENT TO DELIVERING DEALER: Minnesota Equipment, Inc. 13725 Main Street Rogers, MN 55374 763-428-4107 Prepared For: City Of Otsego Proposal For: Delivering Dealer: Quote Prepared By: John Braunshausen JOHN BRAUNSHAUSEN johnbraunshausen@mnequip.com Minnesota Equipment, Inc. 13725 Main Street Rogers, MN 55374 Date: 07 January 2019 Offer Expires: 31 January 2019 Confidential ALL PURCHASE ORDERS MUST BE MADE OUT ALL PURCHASE ORDERS MUST BE SENT TO (VENDOR): TO DELIVERING DEALER: Deere & Company Minnesota Equipment, Inc. 2000 John Deere Run 13725 Main Street Cary, NC 27513 Rogers, MN 55374 FED ID: 36-2382580; DUNSM 60-7690989 763-428-4107 Quote Summary Prepared For: Delivering Dealer: City Of Otsego Minnesota Equipment, Inc. 13400 90th St Ne John Braunshausen Otsego, MN 55330 13725 Main Street Business: 763-238-5492 Rogers, MN 55374 klamson@ci.otsego.mn.us Phone: 763-428-4107 johnbraunshausen@mnequip.com Quote ID: 18770230 Created On: 07 January 2019 Last Modified On: 07 January 2019 Expiration Date: 31 January 2019 Equipment Summary Selling Price Qty Extended JOHN DEERE 6130M Cab Tractor $ 93,758.16 X 1 = $ 93,758.16 Contract: MN Ag/CUTS/Wde Front Row Crop/OEM 135985 (PG 12 CG 22) Price Effective Date: November 20, 2017 Equipment Total $ 93,758.16 * Includes Fees and Noncontract items Quote Summary Equipment Total $ 93,758.16 Salesperson : X Trade In SubTotal Est. Service Agreement Tax Total Down Payment Rental Applied Balance Due Confidential Accepted By: X $ 93,758.16 $ 0.00 $ 93,758.16 (0.00) (0.00) $ 93,758.16 HN _ Exp, Selling Equipmeni Quote Id: 18770230 Customer Name: CITY OF OTSEGO ALL PURCHASE ORDERS MUST BE MADE OUT ALL PURCHASE ORDERS MUST BE SENT TO (VENDOR): TO DELIVERING DEALER: Deere & Company Minnesota Equipment, Inc. 2000 John Deere Run 13725 Main Street Cary, NC 27513 Rogers, MN 55374 FED ID: 36-2382580; DUNSM 60-7690989 763-428-4107 JOHN DEERE 613OM Cab Tractor Hours: Stock Number: Contract: MN Ag/CUTS/Wide Front Row Crop/OEM 135985 Selling Price (PG 12 CG 22) $ 93,758.16 Price Effective Date: November 20, 2017 * Price per item - includes Fees and Non -contract items Code Description Qty List Price Discount% Discount Contract Extended Amount Price Contract Price OORBL 6130M Cab Tractor 1 $ 24.00 $ 26,461.68 $ 83,795.32 $ 83,795.32 110,257.00 0202 United States 1 $ 0.0c 0409 English 1 $ 0.00 0501 No package 1 $ 0.00 1436 PowrQuad Plus - 24/24, 40 1 $ 0.0c 24.00 km/h $ 1,514.68 $ 1,514.68 2072 Economy Cab 1 $ 1,993.00 2127 Economy Seat 1 $ 0.00 2511 Mirrors - Left-hand and 1 $ 0.00 24.00 Right-hand Manual $ 250.80 $ 250.80 24.00 Telescopic $ 1,315.56 $ 1,315.56 2631 Panorama Front Windshield 1 $ 0.00 2663 Radio (Business Radio 1 $ 330.00 0.00 Package) $ 0.00 $ 0.00 3223 Hydraulic Pump -114 I/min 1 $ 1,731.00 3338 3 Mechanical SCVs (3 SCV 1 $ 1,000.00 0.00 450 Series) $ 0.00 $ 0.00 3820 Rear Independent 1 $ 0.00 540/1000rpm PTO 4120 Draft Links with Telescopic 1 $ 0.00 Bail End - Category 2 4210 Center Link with Ball End - 1 $ 0.00 Category 2 4410 Sway Control Blocks 1 $ 0.00 5010 Flange -Type Rear Axle 1 $ 0.00 5090 Adjustable Steel Wheels 1 $ 0,00 (Steel Disk) Confidential 0.00 $ 0.00 $ 0.00 $ 0.00 0.00 $ 0.00 $ 0.00 $ 0,00 0.00 $ 0.00 $ 0.00 $ 0.00 0.00 $ 0.00 $ 0.00 $ 0.00 24.00 $ 478.32 $ 1,514.68 $ 1,514.68 0.00 $ 0.00 $ 0.00 $ 0.00 0.00 $ 0.00 $ 0.00 $ 0.00 0.00 $ 0,00 $ 0.00 $ 0.00 24.00 $ 79.20 $ 250.80 $ 250.80 24.00 $ 415.44 $ 1,315.56 $ 1,315.56 24.00 $ 240.00 $ 760.00 $ 760.00 0.00 $ 0.00 $ 0.00 $ 0.00 0.00 $ 0.00 $ 0.00 $ 0.00 0.00 $ 0.00 $ 0.00 $ 0.00 0.00 $ 0.00 $ 0.00 $ 0.00 0.00 $ 0.00 $ 0.00 $ 0.00 0.00 $ 0.00 $ 0.00 $ 0.00 JOHN DEERE Selling Equipment Quote Id: 18770230 Customer Name: CITY OF OTSEGO ALL PURCHASE ORDERS MUST BE MADE OUT ALL PURCHASE ORDERS MUST BE SENT TO (VENDOR): TO DELIVERING DEALER: Deere & Company Minnesota Equipment, Inc, 2000 John Deere Run 13725 Main Street Cary, NC 27513 Rogers, MN 55374 FED ID: 36-2382580; DUNS#: 60-7690989 763-428-4107 1834 Less Greenstar Ready 1 $ 0.00 0.00 $ 0.00 $ 0.00 $ 0.00 1835 Less StarFire Receiver 1 $ 0.00 0.00 $ 0.00 5214 Rear Wheels Size 1 $ 1,302.00 24.00 $ 312.48 $ 989,52 $ 989.52 $ 0.00 480/80R34 - Special Profile $ 0.00 $ 0.00 5915 Rear and Front Tire Brand - 1 $ 200.00 24.00 $ 48.00 $ 152.00 $ 152.00 Nokian 6045 4WD Front Axle - 1 $ 0.00 0.00 $ 0.00 $ 0.00 $ 0.00 Unsuspended 6092 Adjustable steel wheels 1 $ 0,00 0.00 $ 0.00 $ 0.00 $ 0.00 6225 Front Wheels Size 1 $ 892.00 24.00 $ 214.08 $ 677.92 $ 677.92 400/80R24 - Special Profile 7702 Shipment Preparation - by 1 $ 0.00 0.00 $ 0,00 $ 0,00 $ 0.00 Ship Overseas 8020 Rear Fender Extensions - 1 $ 659.00 24.00 $ 158.16 $ 500.84 $ 500.84 Adjusted to Tire Size 8300 Cold Start Package 1 1 $ 327.00 24.00 $ 78.48 $ 248.52 $ 248,52 8307 Fuel Tank Bottom Guard 1 $ 426.00 24.00 $ 102.24 $ 323.76 $ 323,76 8725 Becan 1 $ 212.00 24.00 $ 50.88 $ 161.12 $ 161.12 8747 Battery 12WI74AH 1 $ 121.00 24.00 $ 29,04 $ 91.96 $ 91.96 8765 Powerfill Brake 1 $ 511.00 24.00 $ 122.64 $ 388.36 $ 388.36 8924 Loader Hydraulic 1 $ 3,405.00 24.00 $ 817.20 $ 2,587.80 $ 2,587.80 Preparation - Mechanical Midstack SCV - 3 Functions Standard Options Total $13,109.00 $ 3,146.16 $ 9,962.84 $ 9,962.84 1834 Less Greenstar Ready 1 $ 0.00 0.00 $ 0.00 $ 0.00 $ 0.00 1835 Less StarFire Receiver 1 $ 0.00 0.00 $ 0.00 $ 0.00 $ 0.00 1867 Less Software 1 $ 0.00 0.00 $ 0.00 $ 0.00 $ 0.00 Technology Options Total $ 0.00 $ 0.00 $ 0.00 $ 0.00 Value Added Services $ 0.00 Total Suggested Price Confidential 0.00 $ 0.00 93,758,16 Kevin Lamson From: JohnBraunshausen@mnequip.com Sent: Tuesday, January 8, 2019 10:16 AM To: Kevin Lamson Subject: FW: YOUR IMMEDIATE ATTENTION IS REQUIRED: Pending Deal 185001, CITY OF OTSEGO, PO MN00314 From: Brown Sha'kesha L[mailto:BrownShakeshaL@johndeere.com] Sent: Tuesday, January 08, 2019 10:15 AM To: JOHNBRAUNSHAUSEN@MNEQUIP.COM Subject: FW: YOUR IMMEDIATE ATTENTION IS REQUIRED: Pending Deal 185001, CITY OF OTSEGO, PO MN00314 John, Here is the revised pending email below From: Brown Sha'kesha L Sent: Monday, January 7, 2019 2:24 PM To:'JOHNBRAUNSHAUSEN@MNEQUIP.COM' <JOHNBRAUNSHAUSEN@MNEQUIP.COM> Cc: Corp Acct Gov Support <CorpAcctGoySUpport JohnDeere.com> Subject: YOUR IMMEDIATE ATTENTION IS REQUIRED: Pending Deal 185001, CITY OF OTSEGO, PO MN00314 Hi John, Please forward this email to the appropriate contact at the agency and ask for a quick email reply approving John Deere Company to proceed with this purchase order. -Vendor - John Deere Company, 2000 John Deere Run, Cary NC 27513 -Price Discrepancy - Contract amount should be $93,758.16, higher by $1,891.64. Reason: Contract price is higher for 6130M Cab than quoted. -Contract Number MN Ag/CUTS/Wide Front Row Crop/OEM 135985 (PG 12 CG 22) missing from agency purchase order. Upon your receipt of the agency's email response and/or revised purchase order, forward the email to me to expedite processing. Your immediate assistance is greatly appreciated. Sincerely, Sha'kesha Brown Govt. Sales Account Coordinator .john Deere A&T CBD Government Sales 2000 John Deere Run, Cary NC 27513 Ph: 919-80.4-2375 Fax: 309/749-2313 Email: brownshakeshalWohndeere.com Bill To Name CITY OF OTSEGO (MN) Bill To 13400 90TH STREET OTSEGO, MN 55330 Dale 10/11/2018 1.00 DRF102-OF $9,629.00 1.00 DSF060-C $800.00 1.00 165 $10,429.00 4WD Lead Time Quick couplers are, 3.00 4470348. for easy removal of 6130M side flail and pump Fluid In both rear 1.00 MISC. tires Trade value 5425 - 1.00 MISC. with Twin (fall mowers set up 2WD/4WD Tractor Make Tractor Model Quote Special Instructions Prepared By Phone Email OP Quote Number Ship To Name Ship To Contact Name Primary Phone Mobile Phone CITY OF OTSEGO (MN) 13400 90TH STREET OTSEGO, MN 55330 Kevin Lamson (763) 235-3174 (763)238-5492 02" Offset 3 -Point Hitch Flail Mower 1 $13,734.00 1 $9,981.001 $9,981.00 ;0" Side Mount Flail Mower- includes electric dual $25,006.00 $18,973,00 $18,173.00 ravel lock, and hydraulic cooling package 'actory Authorized Mount - Side Flail Mower $6,077.00 $3,283.00 $3,283.00 iydraulic Quick Coupler Kit for Boom Heads - icludes hydraulic quick couplers on the boom arm ind two sets of hydraulic quick couplers for the boom $1;25,2,,00 $964.00 $2,892.00 iowerheads liscellaneous $0.00 $300.00 $300.00 liscellaneous $0„00 .($25,000:00) ($25,000.00) Total Cost $9,629.00 Freight $800.00 Grand Total $10,429.00 4WD Lead Time 10-14 weeks John Deere Contract Name MN State 6130M They front pump will adapt to the front 3 point and hook to the 1000 rpm pto shaft Paul Schreurs (605) 929-3083 pschreurs@diEimondniowers.com OP012238 00013325 DIAMOND MOWERS, INC. 350 E. 601h Street N Sioux Falls, SD 57104 (605) 9773300 ph 1 (605) 655-5870 fx www.diamondmowers.com Quote is good 60 days from quote date, Ziegler Inc. November 28, 2018 City of Otsego 4685 212th St W, Farmington, MN 55024 Dear Kevin, We would like to thank you for your interest in our company and our products, and are pleased to quote the following for your consideration. RAVELING 12' PUSHER WI LAFARGE COUPLER We wish to thank you for the opportunity of quoting on your equipment needs. This quotation is valid for 30 days, after which time we reserve the right to re -quote. If there are any questions, please do not hesitate to contact me, Sincerely, DAVE CAROTHERS Territory Manager RAVELING 12' PUSHER W/ LAFARGE COUPLER 3 WEEKS RAVELING 12' PUSHER W/ LAFARGE COUPLER $7,350,00 Page 1 of 1