Item Coversheet

*4.D.1.


Shakopee City Council
February 18, 2020


FROM:Bill Egan, Public Works Superintendent
TO:Mayor and Council Members
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.

ATTACHMENTS:
Description
CIP Storm-20-731
Ziegler Quote