HomeMy WebLinkAbout5.C.12. Authorize re-purchase agreements for skid-steer loaders Consent Business 5. C. 12.
SHAKO EE
TO: Mayor and City Council
Mark McNeill, City Administrator
FROM: Mike Hullander, Public Works Superintendent
DATE: 12/16/2014
SUBJECT: Authorize use of Re-Purchase Agreements for Skid-steer Loaders (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 to be expended from the
Surface Water Fund.
2. Move to authorize utilization of re-purchase agreement with Lano Equipment for three (3) new
Bobcat 5570 Skid-steer Loaders for the price of$3,582.00 each and a total of$10,746.00.
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#166, a 2014
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 is
estimated to have 525 hours at the time of replacement for a re-purchase price of$9,300.00. 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 unites 147, 154,
and 174, 2014 Melroe Bobcat 5570 Skid-steer Loaders. These units are primarily used by park
maintenance staff for athletic field maintenance and sidewalk snow removal. This 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 $10,746.00. The funding for this purchase is 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
g P
Funding for these purchases come from the Surface Water Fund and Capital Equipment Internal
Service Fund.
Relationship to Vision
E. Deliver effective and efficient public services by staff of well-trained, 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$9,300.00. Funding is to be expended from the
Surface Water Fund.
2. Move to authorize utilization of the re-purchase agreement with Lano Equipment for three (3)
new Bobcat S570 Skid-steer Loaders for the price of$3,582.00 each and a total of$10,746.00.
Funding is to be expended from the Capital Equipment Internal Service Fund.
Attachments: