HomeMy WebLinkAbout4.C.2 Authorize Utilization of Re-Purchase Agreements for One Caterpliiar Skid Steer and One Bobcat Skid Steer Consent Business 4. C. 2.
SHAKOPEE
TO: Mayor and City Council
Mark McNeill, City Administrator
FROM: Mike Hullander, Public Works Superintendent
DATE: 12/17/2013
SUBJECT: Authorize Utilization of Re-Purchase Agreements for One Caterpillar Skid Steer and
One Bobcat Skid Steer(E)
Action Sought
1. Move to authorize utilization of re-purchase agreement with Ziegler, Inc. for one (1) new CAT
287D Track Skid-steer Loader for the price of$8,169.53. Funding is to be expended from the
Surface Water Fund.
2. Move to authorize utilization of re-purchase agreement with Lano Equipment for one(1)new
Bobcat S-570 Skid-steer Loader for the price of$4,897.01. Funding is to be expended from the
Capital Equipment Internal Service Fund.
Background
Staff is requesting Council to approve utilizing the re-purchase agreement on Unit 4166, a 2013
CAT 287C Track Skid-steer Loader. This unit is primarily used in the surface water area for pond
maintenance, but is also used for street, park, and sanitary sewer maintenance. The agreement is
for $3,800.00 up to 250 hours and$20.00 for every additional hour over 250. Unit#166 currently
has 443 hours for a re-purchase price of$8,169.53 including tax. The funding for this purchase is
to be expended from the surface water fund.
Staff is also requesting Council to approve using the re-purchase agreement on Unit#147, a 2013
Melroe Bobcat S-570 Skid-steer Loader. This unit is primarily used by park maintenance staff for
athletic field maintenance and sidewalk snow removal. The agreement is based on current State
pricing, minus the value of a one-year-old used Bobcat. There is an additional fee of$8.00 for
every hour over 400 hours, but to date, staff has not been charged any additional fees. The price
for this re-purchase is $4,897.01 with the funding of this purchase to be expended from the
Capital Equipment Internal Service Fund.
Staff continues to believe these re-purchase agreements are of excellent value as they are typically
less than the internal service fund rental rate and provides us with equipment that is always under
warranty. As an example: the rubber tracks, which are a high-wear item due to the conditions
operating on asphalt and concrete, cost$6,000.00 to replace.
Recommendation
Staff recommends Council approve using these re-purchase agreements.
Budget Impact
These purchases affect the Surface Water Fund and the Internal Service Equipment Fund.
Relationship to Vision
E. Deliver effective and efficient public services by a staff of welltrained caring and professional
employees.
Requested Action
1. Move to authorize utilization of re-purchase agreement with Ziegler, Inc. for one (1) new CAT
287D Track Skid-steer Loader for the price of$8,169.53. Funding is to be expended from the
Surface Water Fund.
2. Move to authorize utilization of re-purchase agreement with Lano Equipment for one(1) new
Bobcat S-570 Skid-steer Loader for the price of$4,897.01. Funding is to be expended from the
Capital Equipment Internal Service Fund.
Attachments: