| | | | | | | |  Shakopee City Council February 18, 2020
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| | | | | | | | FROM: | Bill Egan, Public Works Superintendent | TO: | Mayor and Council Members |
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| | | | | | | | Subject: Purchase a skidsteer loader for Public Works | | |
| | | | | | | | Policy/Action Requested: Approve the purchase of a skidsteer loader from Ziegler, Inc., in the total net amount of $6,400. | | |
| | | | | | | | Recommendation: Authorize the purchase. | | |
| | | | | | | | Discussion:
The replacement of skidsteer No. sk1324 is included in the 2020 Capital Improvement Plan (see attached CIP sheet STORM-20-731).The skidsteer is being purchased under the State of Minnesota Contract No. 170697 from Ziegler, Inc. A quotation form for the CAT skidsteer is attached and is consistent with state contract pricing.
The city has and annual trade-in agreement with Ziegler, Inc., for this CAT skidsteer. The net trade-in amount is $3,800 and includes 250 hours. If the hours allotment is exceeded, a charge of $20 per hour over 250 is added. The skidsteer currently has 380 hours (130 hours over), which results in an additional fee of $2,600. The total net purchase price of $6,400. | | |
| | | | | | | | Budget Impact:
The budget for the skidsteer loader per the CIP is $5,500. The total purchase amount is $6,400, which is $900 (16.4 percent) over budget. This equipment is funded in the CIP under the Surface Water Fund. | | |
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