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    5.    
City Council Regular
Meeting Date: 09/05/2017  
Subject:    Approve Purchase of a John Deere Loader
Submitted For: Sharon Legg From: Dalton Larson

INTRODUCTION
Staff is recommending the purchase of a 2017 John Deere 544K Loader.
DISCUSSION
Funds to replace Unit # 212, a 2005 Caterpillar loader, have been included in the 2017 Capital Equipment Budget for $202,000, including a budgeted trade-in value of $25,000 for the existing unit.  The Fleet Maintenance Supervisor is recommending the purchase of a new loader to be used by the Water Department due to the age of the existing unit.  The cost to purchase the 2017 John Deere 544K loader is $195,340.75.  The loader will be purchased from John Deere via RDO Equipment, Co, a state contract vendor for Articulating Wheel Loaders & Accessories. 

The existing Unit 212 is a 2005 Caterpillar 924G loader with approximately 3,400 hours.  John Deere did not provide a trade-in estimate to the City for the existing unit.  The old unit will be posted on GovDeals for auction upon purchase of the new loader. The budget anticipated sales price of $25,000.
RECOMMENDATION
Staff is recommending the purchase of a 2017 John Deere 544K from John Deere under the State Contract for $195,340.75 and putting the old unit, a 2005 Caterpillar 924G loader up for auction on GovDeals.

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