HomeMy WebLinkAbout5.C.2. Authorize Re-purchase Agreements for Two Bobcat Skid Steer Loaders, Tractor and Mower
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CITY OF SHAKOPEE
MEMORANDUM CONSEr~T
TO: Mayor & City Council
Mark McNeill, City Administrator
Bruce Loney, Public Works Director
FROM: Michael Hullander, Public Works Superintendent
DATE: July 1,2008
SUBJECT: Authorize utilization of Re-purchase Agreements for two 2007 S-185 Bobcats from Lano
Equipment, Inc. and one 2007 John Deere 5425 Tractor aIid one 2007 John Deere 1445 Mower
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 $7,580.32 (two new 2008 S-185 Bobcats) & $4,500.00 (one new 2008 John
Deere 5425 Tractor) and $5,480.00 (one new 20081445 Mower) from Siemon Implement, Inc.
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. Staff is requesting that council approve utilizing the re-
purchase agreement on two 2007 S-185 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.
Public Works also has re-purchase agreements with Siemon Implement, Inc. on three ill 5425 Tractors, three ill
1445 mowers and one ill 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. The 1445 Mower agreements are trade every 18
months for $4,000.00 up to 275 hours and $8.00 per every additional hour after 275 hours.
Below are the agreements with costs to date, our estimated additional hours and estimated fmal costs:
Agreement with Lano Equipment, Inc.
State bid #439156 for New 2008 Bobcat S-185 Turbo
State Bid Price $25,858.84
Less used S-185 Bobcat (22,300.00)
Net Trade $3,558.84
6.5% Tax $ 231.32
Total $3,790.16
Internal Services Fund rental rate 1 year $5,000.00.
Agreement with Siemon Implement, Inc.
State bid #438938 for New 2008 John Deere 5425 Tractor
Current hours: 259
-250
9 additional hours x $10.00 / per additional hour = $ 90.00
+ $3.500.00
Current Total $3,590.00
Estimated additional hours until trade: 100 x $10.00 / per additional hour $1.000.00
Subtotal $4,590.00
Tax $ 298.35
Total estimated cost of trade $4,888.35
Internal Service Fund Rental Rate 18 months $8,784.00
State bid #439320 for New 2008 John Deere 1445 Mower
Current hours: 360
-275
85 additional hours x $8.00/per additional hour= $ 680.00
+ $4.000.00
Current Total $4,680.00
Estimated additional hours until trade: 100 x $8.001 per additional hour $ 800.00
Subtotal $5,480.00
Tax $ 356.20
Total estimated cost of trade $5,836.20
Internal Service Fund Rental Rate 18 months $4,950.00
ALTERNATIVES:
1. Authorize staff to utilize the re-purchase agreement with Lano Equipment, Inc. on two 2007 S-185
Bobcats and Siemon Implement, Inc. on the 2007 John Deere 5425 Tractor and 2007 1445 Mower for the
total combined price of$18,304.87.
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 two 2007 S-185 Bobcats &
Siemon Implement, Inc. on the 2007 John Deere 5425 Tractor and 2007 John Deere 1445 Mower for the
combined price of$18,304.87 with the funds to be expended from the Internal Service Equipment Fund.
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Michael Hul ander
Public Works Superintendent