HomeMy WebLinkAbout5.D.4. Authorize Utilization of Re-purchase Agreement for 2007 S-185 and S-300 Bobcats CITY OF SHAKOPEE v ` ~ ~ ` ~
MEMORANDUM
TO: Mayor & City Council ,
Mark McNeill, City Administrator ` ~ ~ L
Bruce Lone Public Works Director ~ ~ ~ ~ ~
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FROM: Michael Hullander, Public Works Superintendent
DATE: December 18, 2007
SUBJECT: Authorize utilization of Annual Re-purchase Agreement for the 2007 5-
185 & 5-300 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 $5,280.27, (New 2008 5-185) &
$3,901.10, (New 2008 5-300) Bobcats.
BACKGROUND:
Public Works has annual re-purchase agreements with Lano Equipment, Inc. for four
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 2007 State Bid
Pricing.
Staff is requesting that council approve utilizing the re-purchase agreement on the 2007
5-185 and 5-300 Melroe Bobcats. The agreement is based on current State Bid Pricing
minus the current market value on aone-year-old used Bobcat. Staff is also requesting to
add the two speed option for the 5-185 Bobcat at a cost of $994.00. There also is an
additional fee of $8.00 for every hour over 400 hours. To date staff has not been charged
any additional fees. The combined Internal Service Fund Rental Rate for one year is
$9,530.00.
State bid #437482 for New 2008 Bobcat 5-185 Turbo
State Bid Price $23,958.00
Less used 5-185 Bobcat (19,000.00)
Net Trade $4,958.00
6.5% Tax 322.27
Total $5,280.27
State bid#437482 for New 2008 Bobcat S-300
State Bid Price $31,163.00
Less used 5-300 Bobcat (27,500.00)
Net Trade $3,663.00
6.5% Tax 238.10
Total $3,901.10
ALTERNATIVES:
1. Authorize staff to utilize the re-purchase agreement with Lano Equipment, Inc. on
the 2007 5-185 & 5-300 Bobcats for the total price of $9,181.37.
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 5-185 & 5-300 Bobcats for the price of $9,181.37 with the funds to be expended
from the Internal Service Equipment Fund.
Michael Hullander
Public Works Superintendent