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HomeMy WebLinkAbout15.D.3. re-pirchse Agreements for Two Bobcats and One Mower CITY OF SHAKOPEE /S;b31 MEMORANDUM CO "SENT TO: Mayor & City Council ..,V .~.~. Mark McNeill, City Administrator ~~. ".., ',. Bruce Loney, Public Works Director FROM: Michael Hullander, Public Works Supervisor SUBJECT: Authorization to use re-purchase agreements with Lano Equipment, Inc. and Siemon Implement, Inc. DATE: December 7, 2004 INTRODUCTION: Public Works is requesting council authorization to utilize the re-purchase agreements with Lano Equipment, Inc. and Siemon Implement, Inc. for two bobcats and one mower. The total cost of these agreements is for $10,562.88. BACKGROUND: Public Works has re-purchase agreements with Lano Equipment, Inc. and Siemon Implement, Inc. These are cost saving agreements that allow Public Works to always have fully waranteed equipment which saves maintenance dollars at prices comparable to the city's internal service fund rental rates. Below is the price of the agreements compared to the fund rates: Re- Purchase Price Internal Service Annual Fund Rental Rate S-300 Bobcat $3,508.32 Annual $4,774.00 S-185 Bobcat $3,880.86 Annual $3,734.00 JD 1445 Mower $3,173.70 18 Months $4,074.00 Public Works is requesting council to authorize staff to utilize these agreements. . ACTION REQUESTED: Move to authorize staff to utilize the re-purchase agreements with Lano Equipment, Inc. for two bobcats at a total price of$7,389.18 and also with Siemon Implement, Inc. for a John Deere 1445 Mower at the price of$3,173.70 with the cost to be expended from the Internal Service Equipment Fund. ~.~ Michael Hullander Public Works Supervisor