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Item No. 7C Type of Business: CA WK: Work Session; PH: Public Hearing; CA: Consent Agenda; CB: Council Business City of Mounds View Staff Report To: Honorable Mayor and City Council From: Greg Lee, Director of Public Works Item Title/Subject: Resolution No. 5952 Approving the Purchase of a Replacement Front End Loader Meeting Date: February 24, 2003 Background: In 1988, the City purchased a Caterpillar 1989 Caterpillar 936E Series Front End Loader. This Front End Loader has been used to perform many routine Public Works duties such as snow removal, loading salt for ice control, loading of material and debris associated with street maintenance and utility repair activities. The City has a practice of replacing pieces of equipment such as front end loaders on a 15 -year cycle. This life cycle for a front end loaders was selected to minimize costs to the City. It takes into account factors such as; the cost of a new loader, increased service and repair costs, down time, and trade-in values. Given the age and increased maintenance necessary, this piece of equipment is no longer cost effective and has therefore reached the end of its economically useful life cycle. This front end loader was scheduled for replacement in 2003 and monies have been allocated in the 2003 budget for its replacement. Staff has researched and thoroughly tested two brands of front end loaders: Case and John Deere. Both were similar in size and have specifications to the City’s existing loader. The Case 621D front end loader performed as well as the other brand and is the best financial choice for the City. Brand Model No. Loader Cost Trade-In Value Total Cost Caterpillar Not Available Case 621D $114,529 $33,000 $81,529 John Deere 544H $125,895 $32,572 $93,323 Staff is recommending that the existing front end loader be traded in and replaced with a Case 621D loader. This can be purchased under state contract, foregoing the requirement of acquiring additional bids. A 2003 Case 621D front end loader can be purchased from St. Joseph Equipment under state contract for $114,529.00. (Tax and transfer fee(s) would be additional.)