HomeMy WebLinkAbout4.C.3. Utilization of Re-purchase Agreements for One Caterpillar Skid Steer and one Bobcat Skid Steer �.�.
Prnweic
SHAKOPEE
KOPEE
TO: Mayor and City Council
Mark McNeill, City Administrator
FROM: Mike Hullander, Public Works Superintendent
DATE: 01/08/2013
SUBJECT: Authorize Utilization of Re- Purchase Agreements for One Caterpillar Skid Steer and One Bobcat Skid
Steer (E)
Action Sought
1. Move to authorize using the re- purchase agreement with Ziegler, Inc. for one new Cat 287C Track Skid -steer
Loader for the price of $8,229.38. Funding is to be expended from the Surface Water Fund.
2. Move to authorize using the re- purchase agreement with Lano Equipment, Inc. for one new Bobcat S -570
Skid -steer Loader for the price of $5,013.51. Funding is to be expended from the Capital Equipment Internal
Service Fund.
Background
Staff is requesting Council approve utilizing the re- purchase agreement on Unit #166 a 2012 Cat 287C Track
Skid -steer Loader. This unit is used primarily in the surface water area for pond maintenance, but is also used for
street, park and sanitary sewer maintenance. The agreement is for $3,800.00 up to 250 hours and $20.00 for every
additional hour over 250. Unit #166 currently has 445 hours for a re- purchase price of $8,229.38 including tax.
The funding for this purchase is to expended from the surface water fund.
Staff is also requesting Council to approve using the re- purchase agreement on Unit # 147 a 2012 Melroe Bobcat
S -185 Skid -steer Loader. The model S -185 is no longer being manufactured and is being replaced with the new
model S -570. This unit is primarily used by park maintenance staff for athletic field maintenance and sidewalk
snow removal. The agreement is based on current State Pricing minus the value of a one -year -old used Bobcat.
There is an additional fee of $8.00 for every hour over 400 hours, but to date staff has not been charged any
additional fees. The price for this re- purchase is $5,013.51 with the funding of this purchase to be expended from
the Capital Equipment Internal Service Fund.
Staff continues to believe these re- purchase agreements are of excellent value as they are typically less than the
internal service fund rental rate and provides us with equipment that is always under warranty. As an example,
the rubber tracks which are a high wear item, due to the conditions operating on asphalt and concrete, cost
$6,000.00 to replace.
Recommendation
Staff recommends council approve using these agreements.
Budget Impact
These purchases affect the Surface Water fund and the Internal Service Equipment fund.
Relationship to Vision
E. Deliver effective and efficient public services by a staff of welltrained caring and professional employees
Requested Action
1. Move to authorize using the re- purchase agreement with Ziegler, Inc. for one new Cat 287C Track Skid -steer
Loader for the price of $8,229.38. Funding is to be expended from the Surface Water Fund.
2. Move to authorize using the re- purchase agreement with Lano Equipment, Inc. for one new Bobcat S -570
Skid -steer Loader for the price of $5,013.51. Funding is to be expended from the Capital Equipment Internal
Service Fund.
Attachments: