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HomeMy WebLinkAbout15.D.5. Re-purchase Agreement for 203 S-185 Bobcat from Lano Equipment, Inc. IS:04j-: CITY OF SHAKOPEE MEMORANDUM CONSENT TO: Mayor & City Council Mark McNeill, City Administrator Bruce Loney, Public Works Director FROM: Michael Hullander, Public Works Supervisor DATE: June 1,2004 SUBJECT: Authorize enactment of Annual Re-purchase Agreement for the 2003 S- 185 Bobcat from Lano Equipment, Inc. INTRODUCTION: Public Works is requesting council approve and authorize staff to utilize the annual re- purchase agreement with Lano Equipment, Inc. for the price of $3,690.23. BACKGROUND: Public Works has annual re-purchase agreements with Lano Equipment, Inc. for the three bobcat skid steer loaders in our fleet. These agreements were entered into with council authorization at the time of purchase. In the past staff acted on these agreements without going back to council because the price has always been less than $5,000.00. Gregg V mdand has requested we receive council authorization to enact all re-purchase agreements because the trade-in value plus the re-purchase price is greater than $10,000.00, which requires council authorization. All future enactments ofre-purchase agreements will come to council for authorization. Staff is requesting that council approve enacting the fe-purchase agreement on equipment number 154, a 2003 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. Attached to this memo is the re-purchase price from Lano Equipment, Inc. State bid #43223 for New 2004 Bobcat S-185 Turbo State Bid Price $21,465.00 Less used S-185 Bobcat (18,000.00) Net Trade $3,465.00 6.5% Tax $ 225.23 Total $3,690.23 Utilizing the Finance Departments Internal Service Fund rental spreadsheet the rate based on the new purchase price including tax over a ten-year life expectancy with nine years remaining at 5 percent annually would equate to a $3,724.00 annual rental rate charged to Public Works. Ifstate tax is not included the rental rate would be $3,496.00. Based on the Internal Service Fund Rental Rates and also that Public Works continues to have a fully warranted bobcat with minimal maintenance cQsts: fuel, oil changes and lubrications. Staff believes these agreements are an excellent value to the taxpayer. ALTERNATIVES: 1. Authorize staff to enact the re-purchase agreement with Lano Equipment, Inc. on the 2003 S-185 Bobcat for the price of $3,690.23 2. Deny the request 3. Table for additional information -. RECOMMENDATIONS: Staff recoinmends alternative number one. ACTION REQUESTED: Authorize staff to enact the re-purchase agreement with Lano Equipment, Inc. on the 2003 S-185 Bobcat for the price of $3,690.23 with the funds to be expended from the Internal Service Equipment Fund. -;nM)f.~~ Michael Hullander Public Works Supervisor Lano bobcat ~^, ot$)~ 1(0'''''1. . \le"~. . - - - tp. - ,_0 - 'cn-'-.-_ ..__ j~. ~.---' t ~..!!J _ - _ _ _ J-- '.IfIJJI!1.' I J.a. '" '.,1'-, .rJ':EU...nV.-;.:~},P!'" ;'.. A::'~~.~_ 6.. ~ --to"T"""':=:i:'~tt~~ "" ,~i~, ..... .- - ~ - . ..... . :>:;... '. _n . ..J ._ , I J ~ ~- ~---- -'"""'-............,.....-.-- "... . - tD21 W. 133rd.5J., ShOl;kope-e, MN ,5.53'79 Tel.' 952!4.4..l)..f).310.__" Fa:i 951/496"u263 Lt>l4.0 Hwy. 1" N. lV.' An.(~ka, lVIN 55.'l(i3 TeJ.763/:J.23-J:720 ,,;,"Fax '?63/422.-394~. r-'-"--'.'--"--"~--'--,,-,___~_~ r't~aufR~~lj __-~~,=.~='-! ? . LANO EQUiPMENT . I . - JW1. 'N. 13&<1 St . Shakc)pee. MN 553/9 I .-, (9:'2.' 44::.-63 U) . 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