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Home My WebLink AboutR-2012-104 Purchase of 2012 John Deere 444K Wheel Loader RESOLUTION NO. R-2012-104 A RESOLUTION ACCEPTING THE PROPOSAL OF MURPHY TRACTOR & EQUIPMENT CO. AND AUTHORIZING THE PURCHASE OF A 2012 JOHN DEERE 444K WHEEL LOADER OFF THE MODOT COOPERATIVE PURCHASING CONTRACT IN AN AMOUNT NOT TO EXCEED $121,836.00 WHEREAS, the City has a need to acquire a John Deere 444K wheel loader for its Public Works Department operations and use of such equipment is essential to the City's proper, efficient and economic operation; and WHEREAS, a John Deere wheel loader is available for purchase from Murphy Tractor & Equipment Co.utilizing the MODOT cooperative purchasing contract; and WHEREAS, the City desires to purchase said 2012 John Deere 444K wheel loader under a purchase agreement incorporating the terms set forth in the proposal attached hereto as Exhibit "A"; and WHEREAS, the Board of Aldermen find it is in the best interest of the City to authorize the acquisition and purchase of such equipment as set forth herein; NOW THEREFORE, BE IT RESOLVED BY THE BOARD OF ALDERMEN OF THE CITY OF RIVERSIDE, MISSOURI, AS FOLLOWS: THAT acquisition of a 2012 John Deere 444K wheel loader according to the terms set forth in Exhibit "A" attached hereto is hereby authorized, approved, and ratified in an amount not to exceed $121,836.00; FURTHER THAT the Mayor; City Administrator, and Finance Director are hereby authorized to execute all other documents and agreements necessary or incidental to carry out the terms and conditions of such agreements and the City Clerk is authorized to attest thereto. PASSED AND ADOPTED by th Board of AI rmen and APPROVED by the Mayor of the City of Riverside, Missouri, the � day of _1��17 '�.7� , 2012. D�� Kat een L. Rose, Mayor ATTEST: Appr to form: l .. e Robin�Littrell, ity Clerk a c ho pson, City Attorney CITY OF �R�IVE Upstream from ordinary. 2950 NW Vivion Road Riverside, Missouri 64150 AGENDA DATE: 08-06-2012 TO: Mayor and Board of Aldermen FROM: Tom Wooddell, Public Works Director RE: Lease/Purchase approval of New John Deere 2012 344J/ 444K Wheel Loader BACKGROUND: Funding to lease a new 2012 John Deere 344J wheel loader was included in th 2012-2013 budget. The John Deere 344J wheel loader is not available for purchase upfront throug the MODOT Purchasing Contract. It may only be leased through Governmental Municipal Operatin Lease contract at 5 payments of $18,862.01. ($94,310.05) Purchase option at end of lease i $46,900.00. $94,310.05 + $46,900.00= $141,210.05 The John Deere 444K wheel loader is available to be purchased through the MODOT purchasin contract or leased through the Governmental Municipal Operating Lease with a purchase option en of lease from Murphy Tractor and Equipment. Request was made by the Mayor and Board Alderman to explore purchasing the wheel loader vs. leasing under the MODOT Purchasing Contract Purchase Amount John Deere 444K Option 1: $119,490.00 with 5,000 hour power train & hydraulics warranty. Option 2: $121,836.00 with 5,000 hour full warranty. Lease Options John Deere 444K Option 3: 5 year 60 month lease with 5 annual payments of $16,628.21 —($83,141.05) option end f lease purchase $57,800.00. $57,800.00 + $83,141.05 = $140,941.50. Option 4: 5 year 60 month lease with 5 annual payments of $17,216.46 —($86,082.30) purchas option end of least purchase $57,800.00. $57,800.00 +$86,082.30 =$143,882.30 BUDGETARY IMPACT: The adopted 2012-2013 fiscal budget included $22,000.00 for the annu I lease payment of the John Deere Wheel Loader. If the purchase option is selected a Budg t Amendment will be necessary. STAFF RECOMMENDATION: Staff recommends Option 2. Point of Contact: Public Works Director Tom Wooddell. M�RPHY TRACTOR & EQUIPMENT CO. 5087 E Broadway Ave ]Uly 31, 2012 Des Moines, IA 50317d744 515-263-0055 Tom ao eox � �so City of Riverside, MO Dodge City, KS 67801-1760 620-227-3139 Dear Tom, 1303 3rd Ave. NW � Fort Dodge, IA 50501-2257 y,�e are leased to uote the followin for our consideration: 515-5763184 P q 9 Y P.o. sox aso (1) John Deere 444K, new 2012 model, S/N Factory Order. Per MoDOT Contract 03- Gering, NE 69341•0460 308-436-2177 120320R] and equipped per City of Riverside to include published & unpublished options. 3204 S. Engleman Road The following factory and dealer options are included: Grantl Island, NE 68803-6621 308387-0741 * JDLiNK Ultimate Cellular for Certified Countries in the Americas, * 444K SWndard Gathering Group, P.o. eox �zos * John Deere PowerTech PVX 4.SL meets EPA IT4 and EU Stage IIIB Emissions Great Bend, KS 67530-1206 s2o-�sz-2�ae (124 Net Peak hp), 8600 NE Parvin Road * Standard Fan Drive, Kansas City, MO 84161-8300 * Air Intake system without Precleaner Engine, s�s-aas-s000 * Engine Exhaust with Flat Black Curved Stack, 6100 Arbor Road * 100 amp Alternator, Lincoln, NE 68517-32�1 * Z-BAR� ao2�s�-�soo * Greased Steering Cylinders Joints, P.O. Box 1013 * 3 Function -- ]oystick with 3rd Function Auxiliary Control Lever and Steering North Platte, NE 89103-1013 Column FNR 308-534-7020 * ROPS Quiet Cab with Air Conditioning , 9751 5.148'" SUeel * Cab with Air A/C Charge, omana, NE 68138-3898 * Standard Fabric, Back Rest E�ension, Air Suspension Seat, ao2-asa-�ass * Ride Control, P.O. Box 5349 * Standard Fuel Filter Water Separator, Sioux City, IA 5'1102-5349 * Transmission without Rear Axle Disconned, 772-252-2753 * Front Hydraulic Locking Differential and Rear Conventional Differential Axles, 1401 S State Highway MM * Manual Differential Lock, Springfield, MO 65802-7726 * 17.SR25 L2 Single Star VUT Bridgestone Radial Tires w/3 pc. Rims, a��-ess-i000 * Front Fenders, 1621 NW Gage Bivd. * Heavy Duty LED Turn Signal and Marker Lights, Topeka, Ks sss�a * SWndard Outside Mirrors, 785-233-0556 * Rear Cast Bumper/Counterweight with Rear Htich and Locking Pin, P.O. Box 387 * English Wbels and Decals, Ulysses, KS 67880-0387 * Z-BAR Hydraulic Attachment Coupler, szo-aes-�o» * 60 in.(1524mm) Coupler Fork Frame Carriage w/48 in. (1219mm) Tines, P.o.eox25zo * 2.0 Cu. Yd.(1.5 Cu. M.)Excavating Coupler Bucket with Bolt-on Cutting Edge, wacerioo, IA 507042520 * Engine Block Heater, 319-235-7085 * AM/FM/WB Radio, 5255 N Deere Road * Fold Down Beacon Bracket & beacon, Park City, KS 672193308 * 24 Volt to 12 Volt - 8 Amp Converter, 316-942-1457 * 3rd Function Plumbing from Boom to Coupler Z-Bar Units, corPorace ottice: * Tag MFG. 2.0 Cu. Yd. Grapple Bucket (Coupler) w/ half cut sides, 5375 N Deere Road *�Narranty (Standard) 12 Month Full, Panc ciry KS 67279-3307 * Extended warranty, 60 months / 5000 hours Full, 316-945-1075 Price Complete, Delivered: $121,836.00 5 Year Municipal Operating Lease (Returning at the end of the lease or purchase option) @ 4.4% Nominal Annual Rate (Subject to credit approval) 5 Annual payments of: $17,216.46 Purchase option end of lease (due 30 days after last payment): $57,800.00 Note: see attached amortization schedule for payment detail. We believe the equipment as quoted will exceed your expectations. On behalf of Murphy Tractor & Equipment Co., Inc., thank you for the opportunity to quote John Deere machinery. Sincerely, !'..-- � .��' --� �- Jim Levy Territory Sales Manager CUSTOMER ACCEPTANCE: 'I accept the equipment & terms stated herewith.' This proposal is good for 30 days' File: City of Riverside, MO John Deere 444K, Proposal 2, 073112.doc 08/O1/2012 3:10:34 PM Page 1 CITY OF RIVERSIDE 444K 8-01 Compound Period: Monthly Nominal Annual Rate: 4.400 % CASH FLOW DATA Event Date Amount Number Period End Date 1 Loan 08/O1/2012 121,836.00 1 2 Payment 08/O1/2013 17,216.46 5 Annual 08/01/2017 3 Payment 09/O1/2017 57,800.00 1 AMORTIZATION SCHEDULE - Normal Amortization Date Payment Interest Principal Balance Loan 08/O1/2012 121,836.00 2012 Totals 0.00 0.00 0.00 1 08/O1/2013 17,216.46 5,470.23 11,746.23 110,089.77 2013 Totals 17,216.46 5,470.23 11,746.23 2 08/01/2014 17,216.46 4,942.84 12,273.62 97,816.15 2014 Totals 17,216.46 4,942.84 12,273.62 08/O1/2012 3:10:34 PM Page 2 3 OS/O1/2015 17,216.46 4,391.78 12,824.68 84,991.47 2015 Totals 17,216.46 4,391.78 12,824.68 4 OS/O1/2016 17,216.46 3,815.97 13,400.49 71,590.98 2016 Totals 17,216.46 3,815.97 13,400.49 5 08/O1/2017 17,216.46 3,214.31 14,002.15 57,588.83 6 09/O1/2017 57,800.00 211.17 57,588.83 0.00 2017 Totals 75,016.46 3,425.48 71,590.98 Grand Totals 143,882.30 22,046.30 121,836.00 Last interest amount increased by 0.01 due to rounding. M�RPHY TRACTOR & EQUIPMENT CO. 5087 E Broadway Ave ]UlY 31, 2012 Des Moines, IA 50317�744 515-263-0055 Tom Po sox i �so City of Riverside, MO Dodge City, KS 67807-1760 620-2273139 Dear Tom, 1303 3rd Ave. NW Fort Dodge, IA 50501-2257 515-576-3184 We are pleased to quote the following for your consideration: P.o. sox aso (1) ]ohn Deere 444K new 2012 model S N Facto Order. Per MoDOT Contract 03- Gering, NE 69341-0460 � � � ry 308-436-2177 120320R] and equipped per City of Riverside to include published & unpublished options. 3204 S. Engleman Road The followin facto and dealer o tions are included: Grand Island, NE 68803-6621 9 ry p 308-381-0741 *]DLINK Ultimate Cellular for Certified Countries in the Americas, P.o. aox i2os * 444K Standard Gathering Group, Grea2 send KS 67530-1206 *]ohn Deere PowerTech PVX 4.SL meets EPA IT4 and EU Stage IIIB Emissions szoas2-2�as (124 Net Peak hp), 8600 NE Parvin Road * SWndard Fan Drive, Kansas ciry MO 641 6 7-830 0 * Air Intake system without Precleaner Engine, 816-483-5000 * Engine Exhaust with Flat Black Curved Stack, 6100 Arbor Road * 100 amp Alternator, Lincoln, NE 685173211 * Z aoz-as�-isoo * Greased Steering Cylinders Joints, P.O. Box 1013 * 3 Function -- Joystick with 3rd Function Auxiliary Control Lever and Steering North Platte, NE 69103-1013 COIUfllll FNR, 308-534-7020 * ROPS Quiet Cab with Air Conditioning , 9751 5.148'" Street * Cab with Air A/C Charge, omana, NE 681383898 * Standard Fabric, Back Rest E�ension, Air Suspension Seat, aoz-asa-iass * Ride Control, P.o. sox asas * SWndard Fuel Filter Water Separator, sioux ci�y IA 51102-5349 * Transmission without Rear Axle Disconnect, 712-252-2753 * Front Hydraulic Locking Differential and Rear Conventional Differential Axles, 1401 S State Highway MM * Manual Differential Lock, Springfield, MO 65802-7726 * 17.SR25 L2 Single Star VUT Bridgestone Radial Tires w/3 pc. Rims, a��-ass-i000 * Front Fenders, 1621 NW Gage Blvd. * Heavy Duty LED Turn Signal and Marker Lights, Topeka, KS 68618 * Standard Outside Mirrors, 785-233-0556 * Rear Cast Bumper/Counterweight with Rear Htich and Locking Pin, P.O. Box 387 * English Labels and. Decals, uiysses, KS 67880-0387 * Z-BAR Hydraulic Attachment Coupler, 620-356-1071 * 60 in.(1524mm) Coupler Fork Frame Carriage w/48 in. (1219mm) Tines, P.O. Box 2520 * 2.0 Cu. Yd. (1.5 Cu. M.)Excavating Coupler Bucket with Bolt-on Cutting Edge, wa[erioo, IA 507042520 * Engine Block Heater, 319-235-7085 * AM/FM/WB Radio, 5255 N Deere Road * Fold Down Beacon Bracket & beacon, Park City, KS 67219-3308 * 24 Volt to 12 Volt - 8 Amp Converter, 376-942-1457 * 3rd Function Plumbing from Boom to Coupler Z-Bar Units, corPora�e otrce: * Tag MFG. 2.0 Cu. Yd. Grapple eucket (Coupler) w/ half cut sides, 5375 N Deere Road * Warranty (Standard) 12 Months Full, Park City, KS 672193307 * Extended Warranty 60 month / 5000 hour, Powertrain & Hydraulia, 316-945-1015 Price Complete, Delivered: $119,490.00 5 Year Municipal Operating Lease (Returning at the end of the lease or purchase option) @ 4.4% Nominal Annual Rate (Subject to credit approval) 5 Annual payments of: ¢16,682.21 Purchase option end of lease (due 30 days after last payment): �57,800.00 Note: see attached amortization schedule for payment detail. We believe the equipment as quoted will exceed your expectations. On behalf of Murphy Tractor & Equipment Co., Inc., thank you for the opportunity to quote ]ohn Deere machinery. Sincerely, �� Jim Levy Territory Sales Manager CUSTOMER ACCEPTANCE: 'I accept the equipment & terms stated herewith.' This proposal is good for 30 days' File: City of Riverside, MO ]ohn Deere 444K, Proposal 2, 073112.doc