Item Coversheet

*4.D.2.


Shakopee City Council
February 16, 2021


FROM:Bill Egan, Public Works Superintendent
TO:Mayor and Council Members
Subject:
Purchase four skidsteer loaders for Public Works; two for the Park division, one for the Street division and one for the Storm Drainage division.
Policy/Action Requested:
Approve the purchase of three Bobcat skidsteers from Lano Equipment, Inc., in the total net amount of $20,371.86; and one Cat skidsteer from Ziegler, Inc., in the total net amount of $4,800.00.
Recommendation:
Authorize the purchases.
Discussion:

Public Works- Parks Maintenance and Streets, Three Skidsteer Loaders

The replacement of three skidsteers (Nos. sk1350, sk1351 and sk1352, see attached Equip-21-421 and Equip-21-461) are included in the 2021 Capital Improvement Plan. The skidsteers are being purchased under the State of Minnesota Contract No. 186573 through Lano Equipment, Inc. A quotation form is attached and consistent with state contract pricing.

 

The city's three old skidsteers will be traded to the dealership as part of these purchases. There was a unanticipated model change this cycle, a one time upcharge is included in the quote and the next repurchase cycle will be back to normal pricing. The net purchase amount with trade-ins for three Bobcat skidsteers is $20,371.86. The skidsteers currently have 250 hours, 235 hours and 255 hours. The allotted equipment hours is 300 per each and none are expected to exceed the allotted amount.

 

Public Works- Storm Drainage, Skidsteer Loader

The replacement of skidsteer No. sk1353 is included in the 2021 Capital Improvement Plan (see attached CIP sheet STORM-21-731).The skidsteer is being purchased under the State of Minnesota Contract No. 186571 from Ziegler Inc. A quotation form for the CAT skidsteer is attached and is consistent with state contract pricing.

 

The city has an 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 is estimated to have 300 hours at the time of purchase (100 hours over), which results in an additional fee of $1,000. The total net purchase price of $4,800.

Budget Impact:

The budget for the three skidsteer loaders per the CIP is $15,000. The total net purchase is $20,371.86 which is $5,371.86 (36 percent) over budget. The equipment is funded in the CIP under Equipment Internal Service Fund.

 

The budget for the Storm Drainage skidsteer loader per the CIP is $6,200. The total purchase amount is $4,800, which is $1,400 (23 percent) under budget. This equipment is funded in the CIP under the Surface Water Fund.

ATTACHMENTS:
Description
CIP-21-461
CIP-21-421
Lano Equipment Inc. Quote
CIP-21-731
Ziegler Inc. Quote