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HomeMy WebLinkAbout4.B.3. Re-purchase Agreements for Two 2011 S-185 Bobcats � . (3. 3 `� - CITY OF SHAKOPEE MEMORAND UM � � � � � �`�� � TO: Mayor & City Council Mark McNeill, City Administrator . FROM: Michael Hullander, Public Works Superintendent DATE: March 6, 2012 SUBJECT: Authorize utilization of Re-purchase Agreements for two 2011 5-185 Bobcats. INTRODUCTION: Public Works is requesting council authorize staff to utilize the annual re-purchase agreement with Lano Equipment, Inc. for the price of $3,985.37 per unit for two new 2012 5-185) Bobcats. Total combined price of $7,970.74. BACKGROUND: Public Works has annual re-purchase agreements with Lano Equipment, Inc. for three 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 agreements on units #154 and # 174 2011 5-185 Melroe Bobcats. The agreements are 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 staff has not been charged any additional fees. Funding comes from the Internal Service Equipment Fund. Staff will be utilizing State Contract # 29797. One new 2012 Bobcat 5-185 Turbo State Bid Price $29,489.00 Less used 5-185 Bobcat (25,760.00) Net Trade $3,729.00 6.875% Tax $ 256.37 Total $3,985.37 Grand Total x two $7,970.74 ALTERNATIVES: 1. Authorize staff to utilize the re-purchase agreements with Lano Equipment, Inc. on unit #154 and #174 2011 5-185 Bobcats for the total price of $7,970.74. 2. Deny the request 3. Table for additional information RECOMMENDATIONS: Staff recommends alternative number one. ACTION REQUESTED: Move to authorize staff to utilize the re-purchase agreement with Lano Equipment, Inc. on unit #154 and #174 2011 5-185 Bobcats for the price of $7,970.74 to be expended from the Internal Service Equipment Fund. �/ ' Michael Hullander Public Works Superintendent