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HomeMy WebLinkAbout5.B.4. Authorize Use of Re-Purchase Agreement for One 2011 S-185 BobcatTO: Mayor & City Council Mark McNeill, City Administrator CITY OF SHAKOPEE MEMORANDUM FROM: Michael Hullander, Public Works Superintendent DATE: December 20, 2011 SUBJECT: Authorize utilization of Re- purchase Agreement for one 2011 S -185 Bobcat. 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 for one new 2012 S -185 Bobcat. BACKGROUND: Public Works has annual re- purchase agreements with Lano Equipment, Inc. for two 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 unit #147 a 2011 S -185 Melroe Bobcat. 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 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 S -185 Turbo State Bid Price $29,489.00 Less used S -185 Bobcat (25,760.00) Net Trade $3,729.00 6.875% Tax $ 256.37 Total $3,985.37 ALTERNATIVES: 1. Authorize staff to utilize the re- purchase agreement with Lano Equipment, Inc. on unit #147 a 2011 S- 185 Bobcat for the price of $3,985.37. 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 #147 a 2011 S- 185 Bobcat for the price of $3,985.37 to be expended from the Internal Service Equipment Fund. Michael Hullander Public o Sup rintendent