09.d1 Staff Report-Tractor Intent to Purchase
Staff Report
Date of Meeting: 10/18/2021
To: Mayor, City Council
From: Charles Fischer – Director of Public Works
Re: 2022 Tractor Purchase Approval
Background: Since 2009, the Public Works John Deere tractor and flail mowing attachments
have been proposed for replacement and have been deferred for future recommendation. The
current tractor is 22 years old and in need of replacement.
This year has demonstrated that the deferred replacement has affected the maintenance
standards, productivity and equipment repair funds of the Public Works Department. The Public
Works department has exhausted a majority of the equipment repair budget towards the
upkeep, maintenance and refurbishment of the tractor and mowing attachments.
The tractor has a main purpose of mowing the Right of Way vegetation within the City to assist
in providing open space for other ROW maintenance and safe passage for motorists and
pedestrians. During 2021, vegetation in the Right of Way became overgrown due to the tractor
requiring several repairs. Down time for repairs instigated excessive growth which produced
substandard maintenance and complaints by the residents.
The 2022 Capital Improvement Fund includes the replacement of the tractor and mowing
implements with a current budgeted amount of $260,000. The current budgeted amount
reflects the anticipated price for 2022. The Public Works Department has been working with
local vendors to acquire quotes reflecting 2021 prices. The Public Works Department has an
opportunity to order in 2021 and utilize an ‘Intent to Purchase’ on or after January 1, 2022 at
the lower 2021 prices.
Another issue relates to inventory availability and delivery date of the new equipment. If an
order is not placed by the end of October, current 2021 inventory may not be available. The
City may choose to wait and order after January 1, 2022 which would create an anticipated
delivery between October and December of 2022. A delivery date of this nature would require
the Public Works Department to utilize the current tractor for another mowing season. With an
early order, the City could anticipate delivery between January and April of 2022.
The Public Works Department proposes submitting an early order and ‘Intent to Purchase’ a
tractor and mowing implements.
Issue: With current available inventory, should the Council approve a 2021 order and ‘Intent
to Purchase’ in 2022 to save on cost of a new tractor and attachments and prevent another
year of potential costly maintenance to the existing tractor?
Proposal Details: Public Works have identified three options for replacement of the existing
tractor and mowing attachments. All three options presented as replacements are similar in
design and function. Each option fits one or more important criteria for the Public Works
department now and into the future for productivity, parts and service availability, and
customer support. Public Works proposes the 2021 order and ‘Intent to Purchase’ one of the
three options provided in this proposal. The options below are submitted with total purchase
price and anticipated delivery. Pictures included are for visual representation only to show
similarities of the equipment, and may not be an exact representation.
Fiscal Impact: The budgeted amount for the tractor replacement in 2022 is $260,000 and by
deciding to order in 2021 the City can assume an estimated $61,494.32 to $73,654.09 in fund
savings. Also, with the purchase of a new tractor cost savings in the Public Works General Fund
will be assumed and have funds to continue other major or minor repairs to other pieces of
equipment or vehicles.
Options:
Option 1:
Minnesota Equipment: John Deere 6130M: 130HP, Diamond boom flail, rear flail, Front 1000
Rpm PTO and 3-Point Hitch.
MN Equipment
JD 6130M Tractor Cost $118,895.68
Est. Auction Value/Trade
Value -$15,000/-$6,000
Attachment Cost $85,610.00
Total $189,505.68/$198,505.68
Note: Highest Horse Power and future all season year-round use capability.
Available Delivery: Between January and April 2022
Option 2:
Baribeau Equipment: Case Maxxum 115: 115HP, Alamo boom flail and rear flail.
Baribeau
Case Maxxum 115 Tractor Cost $147,962.00
Trade Value -$75,162.00
Attachment Cost $115,200.00
Total $188,000.00
Note: Trade value is a representation of trade value plus government discount. This option has
the latest delivery date among the three options and will require use of the old tractor until
delivery. Does not have year-round use capability.
Available Delivery: Between August and November 2022
Option 3:
Frontier Ag and Turf: John Deere 6110M: 110HP, with Alamo boom flail and rear flail
Frontier Ag and Turf
JD 6110M Tractor Cost $94,783.16
Trade Value -$14,300.00
Attachment Cost $105,862.75
Total $186,345.91
Note: Lowest Horse Power of the three options. Does not have year-round use capability.
Available Delivery: Between January and April 2022
Option 4:
Do not approve an early order with ‘Intent to Purchase’ and wait until 2022 to order equipment
at newly quoted 2022 prices.
Recommendation:
Option 1: Purchase tractor and attachments from Minnesota Equipment and Diamond Mowers
Inc. with a total cost of $198,505.68(including trade) with the option to auction tractor and
attachments starting with a reserve price of $6,500 to further reduce overall cost.
Justification:
Option 1 is recommended by Public Works due to meeting all the required needs in the tractor
and attachments, parts and service availability, and long-term customer service through
Minnesota Equipment. Justification for recommending Option 1 is also due to the future
expansion opportunity this tractor provides for year-round use. Future attachments can be
purchased including but not limited to a sweeper for clearing debris from road maintenance or
tree clearing, gravel road grooming attachments, large snowblower for roads/parking lots and
the ice rink, and plow blades. The set up of the tractor in Option 1 is the only one of the three
options capable for year-round use.
Attachments:
Quotes can be found in the Laserfiche files as Tractor_Baribeau, Tractor_Frontier Truf and Ag,
and Tractor_MN Equipment