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HomeMy WebLinkAbout5.B.3. Authorize Use of Re-Purchase Agreements for One 2011 Cat 287C Track Skid-Steer LoaderRECOMMENDATIONS: Staff recommends alternative number one. CITY OF SHAKOPEE MEMORANDUM ,563. TO: Mayor & City Council Mark McNeill, City Administrator FROM: Michael Hullander, Public Works Superintendent DATE: December 20, 2011 SUBJECT: Authorize utilization of Re- purchase Agreement for one 2011 Cat 287C Track Skid- steer. Michael Hullander Public Wo ks Superintendent INTRODUCTION: Staff is requesting authorization to utilize the annual re- purchase agreement with Ziegler, Inc. for the price of $9,832.50 for one new 2012 Cat 287C Track Skid- steer. BACKGROUND; Public Works has an annual re- purchase agreement with Ziegler, Inc. for one Cat 287C Track Skid -steer Loader. Staff is requesting that council approve utilizing the re- purchase agreement on unit #166 a 2011 Cat 287C Track Skid -steer Loader. This unit is used primarily in the surface water area for pond maintenance, but also is used for street, park and sanitary sewer maintenance activities. The agreement is for $3,800.00 up to 250 hours and $20.00 for every additional hour over 250. The current machine has 480 hours and we estimate an additional 40 hours before re- purchase. We can only estimate at this time, the actual price may be slightly more or less. Staff believes the agreements are of excellent value as they are typically less than the internal service fund rate and provide us with equipment that is always under warranty. To replace a set of rubber tracks which is a high wear item, due to the conditions of operating on concrete and asphalt, would cost $6,000.00. Funding comes from the Surface Water Fund. Staff will be utilizing State Contract # SEQ #727 -1209. ALTERNATIVES: 1. Authorize staff to utilize the re- purchase agreement with Ziegler, Inc. on unit #166 a 2011 Cat 287C Track Skid -steer Loader for the price of $9,832.50. 2. Deny the request 3. Table for additional information ACTION REQUESTED: Move to authorize staff to utilize the re- purchase agreement with Ziegler, Inc. on unit #166 a 2011 Cat 287C Track Skid -steer Loader for the price of $9,832.50 to be expended from the Surface Water Fund.