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Mourns ViEw City of Mounds View Staff Report Item No: 8H Meeting Date: Oct 12, 2020 Type of Business: Council Business Administrator Review: To: Honorable Mayor and City Council From: Don Peterson, Public Works Director Item Title/Subject: Resolution 9324, Approving the Purchase of a New Caterpillar Wheel Loader 926M Background / Discussion: During the 2019 budget process, Public Works Staff evaluated the condition of unit #423, a CASE 621 G Wheel Loader. The unit is scheduled to be replaced in 2023. The wheel loader is primarily used for snow removal operations and utility repair work, i.e. water main breaks, storm sewer repairs. The wheel loader was observed to be in fair to good condition and the life of the unit could be extended with a minor overhaul, i.e. (replacing hoses, brakes and other wear items). The replacement date of the unit would be re- evaluated in 5 years, with the goal of not replacing it for another 10 years. As the contractor (Titan Machinery) began the inspection and assessment of needed repairs, the estimated repair costs quickly outpaced the 2020 budget of $25,000.00. Staff met with the Finance Director and reviewed the estimated repair cost of $100,411.00 from Titan Machinery for unit #423. Staff also reviewed the replacement cost of a New Wheel Loader off State Contract, the Cooperative Purchasing Venture Program (CPV). Staff reviewed and tested different models of wheel loaders and determined that the Caterpillar Model 926M Wheel Loader would best meet the needs of Public Works Operations. Staff received a quote from Ziegler Cat for the New Wheel Loader for $209,320.00. Ziegler also provided a trade in value of $33,000.00 for unit #423 for a final cost of $176,120.00 for a new Caterpillar Wheel Loader model 926M. To be funded out of the Vehicle and Equipment Fund, 460-4470-7030 Strategic Plan Strategy/Goal: Maintain and Plan for Infrastructure Improvements. Financial Impact: A budget adjustment is required in the 2020 Operating Budget of $209,320.00, in the Vehicle and Equipment Fund, 460-4470-7030. Recommendation: Staff recommends that Council approve a 2020 Budget Adjustment in the Vehicle and Equipment Fund 460-4470-7030 of $209,320.00. Staff further recommends the City Council approve the quote from Zeigler CAT of Minneapolis, MN for $209,320.00 for the purchase of a new Wheel Loader, Model 926M, including a trade in value of $33,200.00 The Mounds View Visioi. A Thriving Desirable Community