HomeMy WebLinkAbout15.D.4. Sale of Street Sweeper
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CITY OF SHAKOPEE
Memorandum CONSENT
TO: Mayor & City Council
Mark McNeill, City Administrator
FROM: Michael Hullander, Public Works Supervisor
SUBJECT: Sale of Street Sweeper
DATE: March 18, 2003
INTRODUCTION:
The purpose of this agenda item is to accept the high bid from Reliaker for the 1995
Elgin sweeper.
BACKGROUND:
On January 21,2003, City Council authorized staff to proceed with the purchase of a new
Elgin Pelican street sweeper from McQueen Equipment, Inc. for the purchase price of
$119,862.00. Council also discussed and decided that the trade-in value of $16,000.00
was minimal and that staff could possibly sell the existing 1995 street sweeper for more
by advertising and requesting bids.
Staff has received two bids, which are attached to this memo and is requesting to sell the
1995 Elgin Pelican street sweeper to Reliakor Services for the high bid price of
$20,000.00.
The trade-in previously offered by McQueen was $16,000.00. In order to match this
offer, a bid of at least $17,040.00 was needed, because of sales tax savings by trade-in.
Also, with staffs time and advertising costs, the City has another $500.00 in cost. The
high bid received from Reliakor Services is a better sale than the trade-in offered by
McQueen. Also, the trade-in value from McQueen is a better sale than Sweeper Services.
ALTERNATIVES:
1. Accept the high bid from Reliakor Services for the purchase price of $20,000.00.
2. Deny the sale and continue to solicit other bids.
RECOMMENDATION:
Staff recommends Alternative No.1.
ACTION REQUESTED:
Authorize staff to sell the 1995 Elgin Pelican street sweeper to Reliakor Services for the
high bid price of$20,000.00.
~#le ~ {.u
Michael Hull der
Public Works Supervisor
02/21/200;j FRl 12:,'31 FAX 952 403 1441 RELIAKOR SERVICES f?l)OO2/002
Reliakor. f~
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Nationiill P,wiilmanl <5 Ptoptlltll SpeCial/sts - -
February 20~ 2003
Mike HulIunder
City of Shakopee
129 So'uth Holmes Street
Shakopee; MN 55379
Dear Mike,
Thank you lOr taking the time to contact us about the sale of your Elgin Street Sweeper. After
looking it over we were impressed. by the; upkeep of the machine itself, however it does need some
major repair on some (jftbe areas you would except after many hours of use. That being said: I
would like to make you an offer of $20~OOO tor the sweeper.
Sincerely,
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Tim Polich ..-..-........
Director of Operations
Sf."y) H~llSen Avenue
Shu.kopl:l:, MN 55379
P11(Jl)!:': (9.~2) 1-03-1440
Fax (95'l) 403-IHl
'w'wwIeliako.r.(om
SWEEPER SERVICES
Servicing All Brands of Street &veepers
March 13, 2003
City of Shakopee Public Works
Attn: Mike Hullander
500 Gorman St.
Shakopee,MN 55379
Re: Street sweeper bid for 1995 Elgin Pelican SE
My bid is $16,200.00
~/' W~
Craig 1. Wodnick
Craig Wodnick
4608 43rd Avenue South · Minneapolis, MN · 55406
Phone: 612 7JA-4305