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HomeMy WebLinkAbout5.D.1. Re-Purchase Agreements for Bobcat Skid Steer Loaders CITY OF SHAKOPEE s: O. I , MEMORANDUM TO: Mayor & City Council cn~~~r~~~ Mark McNeill, City Administrator ", ><. <, ....."." I . .i'j '... :~, ~- t4 . 'j",,:,< 1 r ".unUJ;~~~ ~ Bruce Loney, Public Works Director FROM: Michael Hullander, Public Works Superintendent DATE: December 16, 2008 SUBJECT: Authorize utilization of Annual Re-purchase Agreement for the 2008 S- 185 & 8-300 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 $11,371.80, (three new 2009 S- 185) & $4,152.82, (one new 20098-300) 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 is requesting that council approve utilizing the re-purchase agreement on the three 2008 8-185 and one S-300 Melroe Bobcats. The agreement is based on current 8tate 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 staff has not been charged any additional fees. The Internal 8ervice Fund Rental Rate for one year on two S-185 and one 8-300 Bobcats is $14,778.00 with $5,080 for one 8-185 Bobcat expended from the Storm Drainage Fund for a total cost of$19,858.00. 8taffwill be utilizing 8tate Contract # 439156. Three new 2009 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 $3,790.16 Total X3 $11,371.80 One new 2009 Bobcat S-300 State Bid Price $32,899.36 Less used S-300 Bobcat (29,000.00) Net Trade . $3,899.36 6.5% Tax $253.46 Total $4,152.82 Grand Total $15.524.62 , .- ~ ..,. ;, ~ . '_ ,: .t. -.,1< ALTERNATIVES: 1. Authorize staff to utilize the re-purchase agreement with Lano Equipment, Inc. on the 2008 S-185 & S-300 Bobcats for the total price of $15,524.62. 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 2008 S-185 & S-300 Bobcats for the price of $15,524.62 with $11,734.46 to be expended from the Internal Service Equipment Fund and $3,790.16 to be expended from the Storm Drainage Fund. ~.~L Michael Hullander Public Works Superintendent