CCP 05-26-1992 - Laserfiche WebLink

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\. . CITY OF ARDEN HILLS MEHJRANDllM DATE: May 21, 1992 'lU: Mayor and City ColmCil FR<M: Dan Winkel, Public works SUperintendent 6MY SUBJEX:T: Purchase of Used Case Tractor fran Perron Sewer & water Due to the untimely death of Ray Perron, Perron Sewer and Water Construction is now selling a used 1988 Case 580-K Tractor/Backhoe. 'Ihe backhoe is in excellent condition, with only 3,100 hours of use, and appears to have been well maintained on a routine basis. The tractor was operated by both Jim Perron, a current city employee, and Phil Perron, who will be working as a terrporary employee this summer. The price quoted is $25,000.00 and after contacting local dealers that handle this type of equipment, I determined the amount quoted price would be an excellent purchase. 'Ihe average selling price for this machine is approximately $30,000, based on the age and low hours of use. . The purchase price for a new machine of this type in 1988 was approximately $42,000, and the price tag would be over $50,000 if this same tractor/backhoe were purchased new in 1992. There are no funds budgeted in 1992 for purchase of a backhoe, however, we do have $25, 000 budgeted to purchase a Bobcat tractor. I would prefer to utilize the budgeted funds for purchase of the Case Tractor from Mr'S. Perron. My intent would be to still purchase a Bobcat during this year, if p::>ssible, using any funds saved from capital expenditures scheduled for purchase this year. For your information, I plan to negotiate the sale = trade-in of the Massey Ferguson tractor that is =ently used by Public Works. The Massey tractor has been very troublesome since it was purchased in 1987. The value of this tractor was $32,500 when purchased, and I am hoping to realize at least $15,000 to $20,000 from the sale or trade-in of this tractor. It appears that there may be some I1\Onies saved on the capital equipment purchases schedule for this year. If it is not possible to regain the $25,000 that was eannarked for the Bobcat tractor, I would recammend that purchase of Bobcat tractor be delayed one year. The Case 580-K Tractor/Backhoe would be put to use immediately upon purchase for repairing manholes, gate-valves, hydrants, catch basins, and several other projects that formerly required rental of this type of equipment. The backhoe would also be a valuable asset during street repairs, watermain repairs, and also maintenance of storm water ditches. .