HomeMy WebLinkAbout5.C.3. Authorize Annual Re-purchase Agreements with Lano Equipment, Inc. and Siemon Implement, Inc.
5Cl3
CITY OF SHAKOPEE CONSENT
MEMORANDUM
TO: Mayor & City Council
Mark McNeill, City Administrator
Bruce Loney, Public Works Director
FROM: Michael Hullander, Public Works Supervisor
DATE: April l7, 2007
SUBJECT: Authorize utilization of Annual Re-purchase Agreements for one 2006 S-
l85 Bobcat from Lano Equipment, Inc. and one 2005 John Deere 5425
Tractor from Siemon Implement, Inc.
INTRODUCTION:
Public Works is requesting council authorize staff to utilize the annual re-purchase
agreement with Lano Equipment, Inc. for the price of $4,681.74, (New 2007 S-l85) &
$4,739.25, (New John Deere 5425 Tractor) from Siemon Implement, Inc.
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. Staff is requesting that council approve utilizing the re-
purchase agreement on the 2006 S-l85. 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.
Public Works also has re-purchase agreements with Siemon Implement, Inc. on three JD
5425 Tractors, three JD 1445 mowers and one JD Gator. The 5425 Tractor agreements
are trade every 18 months for $3,500.00 up to 250 hours and $10.00 per every additional
hour after 250 hours.
Below are the agreements with costs to date, our estimated additional hours and estimated
final costs:
Agreement with Lano Equipment, Inc.
State bid #437482 for New 2007 Bobcat S-185 Turbo
State Bid Price $23,896.00
Less used S-185 Bobcat (19,500.00)
Net Trade $4,396.00
6.5% Tax $ 285.74
Total $4,681.74
Internal Services Fund rental rate 1 year $4,732.00.
Agreement with Siemon Implement, Inc.
State bid #437482 for New 2007 John Deere 5425 Tractor
Current hours: 305
-250
55 additional hours x $10.00 / per additional hour = $ 550.00
+ $3,500.00
Current Total $4,050.00
Estimated additional hours until trade: 40 x $lO.OO / per additional hour $ 400.00
Subtotal $4,450.00
Tax $ 289.25
Total estimated cost of trade $4,739.25
Internal Service Fund rental rate l8 months $6,856.50
ALTERNATIVES:
1. Authorize staff to utilize the re-purchase agreement with Lano Equipment, Inc. on
the 2007 S-185 Bobcat and Siemon Implement, Inc. on the 2007 John Deere 5425
Tractor for the total combined price of $9,420.99.
2. Deny the request
3. Table for additional information
RECOMMENDATIONS:
Staff recommends alternative number one.
ACTION REQUESTED:
Authorize staff to utilize the re-purchase agreement with Lano Equipment, Inc. on the
2007 S-l85 Bobcat & Siemon Implement, Inc. on the 2007 John Deere 5425 Tractor for
the combined price of $9,420.99 with the funds to be expended from the Internal Service
Equipment Fund.
-rh.JJd. -J.LJL
Michael Hullander
Public Works Supervisor