HomeMy WebLinkAbout5.D.1. Authorize Re-Purchase Agreement for the 2006 S-185 & S-300 Bobcats
~- "'c
CITY OF SHAKOPEE s: D. J~
MEMORANDUM
TO: Mayor & City Council COtlsEff~r
Mark McNeill, City Administrator
Bruce Loney, Public Works Director
FROM: Michael Hullander, Public Works Supervisor
DATE: January 16,2007
SUBJECT: Authorize utilization of Annual Re-purchase Agreement for the 2006 S-
185 & S-300 Bobcats from Lano Equipment, Inc.
INTRODUCTION:
Public Works is requesting council authorize staff to utilize the annual re-purchase
agreement with Lano Equipment, Inc. for the price of$4,012.92, (New 2006 S-185) &
$3,917.07, (New 2006 S,.300) Bobcats.
BACKGROUND:
Public Works has annual re-purchase agreements with Lano Equipment, Inc. for three
Bobcat Skid Steer Loaders. These agreements were entered into with council
authorization at the time of purchase. Staff needs to order the equipment at this time to
ensure a timely delivery, also by ordering now we get the benefit of using 2006 State Bid
Pricing.
Staff is requesting that council approve utilizing the re-purchase agreement on the 2006
S-185 and S-300 Melroe Bobcats. The agreement is based on current State Bid Pricing
minus the current market value on a one-year-old used Bobcat. There also is an additional
fee of$8.00 for every hour over 400 hours. To date staffhas not been charged any
additional fees. The combined Internal Service Fund Rental Rate for one year is
$9,972.00.
State bid #435752 for New 2007 Bobcat S-185 Turbo
State Bid Price $22,768.00
Less used S-185 Bobcat (19,000.00)
Net Trade $3,768.00
6.5% Tax $ 244.92
Total $4,012.92
State bid#435752 for New 2007 Bobcat S-300
State Bid Price $31178.00
Less used S-300 Bobcat (27,500.00)
Net Trade $3,678.00
6.5% Tax $239.07
Total $3,917.07
ALTERNATIVES:
1. Authorize staff to utilize the re-purchase agreement with Lano Equipment, Inc. on
the 2006 S-185 & S-300 Bobcats for the total price of $7,929.99.
2. Deny the request
3. Table for additional information
RECOMMENDATIONS:
Staff recommends alternative number one.
ACTION REOUESTED:
Authorize staff to utilize the re-purchase agreement with Lano Equipment, Inc. on the
2006 S-185 & S-300 Bobcats for the price of $7,929.99 with the funds to be expended
from the Internal Service Equipment Fund.
-4,~
Michael Hullander
Public Works Supervisor