Approve the purchase of four skidsteer loaders from Lano Equipment and Ziegler Rental in the total net amount of $16,295.

The replacement of four skidsteers (Unit Nos. sk1000, sk1001, sk1002, and sk1104) is included in the 2018 Capital Improvement Plan (see attached information sheets for CIP Nos. Storm 18-006, EQUIP-18-003, and EQUIP-18-009).

The skidsteers are being purchased under the Sate of Minnesota Contract No. 727-417. Lano Equipment quotation forms are attached for the three Bobcat skidsteers and are consistent with the state contract purchase bids. A quotation form from Ziegler Rental for the Cat skidsteer is attached and is also consistent with the state contract. The city's four old skidsteers will be traded to the dealerships as part of these purchases. The Bobcat skidsteers have 340 hours, 264 hours, and 263 hours. The Cat skidsteer has 280 hours.

The net purchase amount with trade-ins for the three Bobcat skidsteers is $11,895. The net purchase amount with trade-in for the Cat skidsteer is $3,800. The Cat skidsteer currently exceeds the hour usage allotment by 30 hours and will be charged an additional $20 per hour amounting to an estimated $600 additional for a total purchase amount of approximately $4,400.

The total budget amount per the CIP is $14,000. The total net purchase amount is estimated at $16,295 (dependent on final hour readings once turned in) which is over budget by approximately 16.4 percent. It should be noted that the budgeted CIP amount for Project No. Equip-18-009 was entered in error at $4,500, which is the upfront estimated cost for a single skidsteer unit - the budget amount should have been twice that much for the two skidsteers listed on that CIP sheet in the amount of $9,000.