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ITEM 3.4 Purchase of John Deer Tractor06egoTY MINNESOTA DEPARTMENT INFORMATION Request for City Council Action ORIGINATING DEPARTMENT REQUESTOR: MEETING DATE: Streets Department Street Operations Manager Lamson June 26, 2017 PRESENTER(s) REVIEWED BY: ITEM #: Consent City Administrator/Finance Director Flaherty 3.4 AGENDA ITEM DETAILS RECOMMENDATION: Staff is recommending the replacement of the City's 2006 John Deere 4720 Utility Tractor. ARE YOU SEEKING APPROVAL OF A CONTRACT? IS A PUBLIC HEARING REQUIRED? No No BACKG ROUND/J USTIFICATION: Part of the 2017 CIP includes the replacement of the City's 2006 John Deere 4720 Utility Tractor. This tractor is used on a year-round basis by staff to perform such duties as snow removal, mowing ballfield maintenance and a variety of other uses. Staff relies very heavily on these tractors in our day to day operations. As of June 12, 2017, this tractor had 2,881.0 hours on it. This model of tractor is no longer available in the 4720 and is now available in a 4066R model which is completely identical to our model and will work with all of our implements that we own. Staff has requested quotes and trade in prices from Minnesota Equipment, Inc. and RDO Equipment Co. Both companies submitted quotes of $22,351.35 and $20,608.81 respectively after trade-in. The state contract pricing for the quotes were nearly identical but RDO Equipment Co. was willing to give the City $21,000 for the trade where Minnesota Equipment, Inc. was only willing to give us $19,000. Staff is recommending that we trade in our 2006 John Deere 4720 to RDO Equipment for the price of $21,000 and purchase the 2017 John Deere 4066R for the state contract price of $20,608.81 after trade. This amount is under the amount of $25,000 budgeted for the purchase. The Public Works Subcommittee was presented with this information at the June 215` meeting and recommended that it be placed on consent agenda. SUPPORTING DOCUMENTS ATTACHED: • RDO Equipment Co. quote • Minnesota Equipment, Inc. quote POSSIBLE MOTION PLEASE WORD MOTION AS YOU WOULD LIKE ITTO APPEAR IN THE MINUTES: Motion to trade in the City's 2006 John Deere 4720 to RDO Equipment Co. for a value of $21,000 and purchase a new 2017 John Deere 4066R for $20,608.81 after trade. BUDGET INFORMATION FUNDING: BUDGETED: 206-43100-501 Yes 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: RDO Equipment Co. 1254 S Tower Road Fergus Falls, MN 56537 218-739-3284 act-ff@rdoequipment.com Quote Summary Prepared For: Delivering Dealer: City Of Otsego RDO Equipment Co. 8899 Nashua Ave Ne Kipp Anderson Elk River, MN 55330 1254 S Tower Road Business: 763-441-4414 Fergus Falls, MN 56537 Phone: 218-739-3284 ktanderson@rdoequipment.com Quote ID: 15345749 Created On: 15 May 2017 Last Modified On: 19 May 2017 Expiration Date: 14 June 2017 Equipment Summary Selling Price Qty JOHN DEERE 4066R Compact $ 41,608.81 X 1 — Utility Tractor (52 PTO hp) Contract: MN Ag Tractors, CUTS, Wide Front Row Crop & OEM Attachments 119214 (PG 12) Price Effective Date: December 12, 2016 Equipment Total Trade In Summary 2006 JOHN DEERE 4720 COMPACT UTILITY TRACTOR - LV4720H470083 Payoff Total Trade Allowance Extended $ 41,608.81 $ 41,608.81 Qty Each Extended 1 $ 21,000.00 $ 21,000.00 $ 0.00 $ 21,000.00 Trade In Total $ 21,000.00 * Includes Fees and Non -contract items Quote Summary Equipment Total $ 41,608.81 Trade In $ (21,000.00) SubTotal $ 20,608.81 Total $ 20,608.81 Down Payment (0.00) Rental Applied (0.00) Salesperson : X Accepted By: X Confidential 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 rogerssales@mnequip.com Quote Summary Prepared For: Delivering Dealer: City Of Otsego Minnesota Equipment, Inc. 8899 Nashua Ave Ne John Braunshausen Elk River, MN 55330 13725 Main Street Business: 763-441-4414 Rogers, MN 55374 Phone: 763-428-4107 johnbraunshausen@mnequip.com Quote ID: 15124341 Created On: 13 April 2017 Last Modified On: 13 April 2017 Expiration Date: 31 August 2017 Equipment Summary Selling Price Qty JOHN DEERE 4066R Compact $ 41,351.35 X 1 - Utility Tractor (52 PTO hp) Contract: MN Ag Tractors, CUTS, Wide Front Row Crop & OEM Attachments 119214 (PG 12) Price Effective Date: April 13, 2017 Equipment Total Trade In Summary 2007 JOHN DEERE 4720/Cab Utility Tractor - LV4720H470083 PayOff Total Trade Allowance Qty Each 1 $ 19,000.00 Extended $ 41,351.35 $ 41,351.35 Extended $ 19,000.00 $ 0.00 $ 19,000.00 Trade In Total $ 19,000.00 * Includes Fees and Non -contract items Quote Summary Equipment Total $ 41,351.35 Trade In $ (19,000.00) SubTotal $ 22,351.35 Total $ 22,351.35 Down Payment (0.00) Rental Applied (0.00) Salesperson: X Accepted By: X Confidential