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Home My WebLink About9C2 - Purchase Bobcat MEETING DATE: AGENDA # PREPARED BY: REVIEWED BY: AGENDA ITEM: DISCUSSION: CITY COUNCIL AGENDA REPORT February 20, 2001 9C2 AL FRIEDGES, PARKS SUPERVISOR BUD OSMUNDSON, PUBLIC WORKS DIRECTOR CONSIDER APPROVAL OF A RESOLUTION AUTHORIZING THE TRADE- IN OF A 1991 MODEL 753 BOBCAT AND THE PURCHASE OF ONE 2001 MODEL 773T BOBCAT. History The purpose of this agenda item is to authorize the trade-in of one currently owned skid steer loader which is a 1991 Model 753 Bobcat and the purchase of one 2001 skid steer loader which is a 773T Bobcat through the State of Minnesota Cooperative Purchasing Program. There is $26,250 identified in the Equipment Fund and Matrix for this piece of equipment. Cu"entC"cumswnces A skid steer loader is relied upon daily by Public Works and Parks maintenance staff. Because of its compact design and zero turning radius this machine becomes especially effective for many tasks and projects. It is probably the most labor saving machine in the equipment fleet. Its primary use is to push, dig, level, backfill and fine grade all types of materials. With our various attachments, this piece of equipment is also used for drilling holes, trenching for drain tile, irrigation installation, sweeping, blowing snow, transplanting trees, milling and leveling blacktop, backfilling water and sewer main breaks, loading trucks, removing trees and brush, and other miscellaneous tasks. The new loader is compatable with all of the attachments. Our existing skid steer loader is a 1991 753 Melroe Bobcat which has accumulated 4,119 hours and is worth $5,000 - $7,000 on trade. Typically the engines, transmissions and drive trains on skid steer loaders are capable of operating approximately 4,000 - 5,000 hours before needing major repairs and overhauls. The Equipment Replacement Matrix suggests replacement of the skid loaders every ten (10) years. Although 10 years is a suggested replacement schedule for this type of equipment, as with any other piece of equipment the maintenance and repair costs were analyzed prior to requesting Council approval for future replacements. The skid steer loader to be replaced has a cracked and worn-out boom. To keep this piece of equipment operational, an estimated $4,200.00 would be needed for repairs. This estimate does not factor in the possibility of future engine and drive train failure. We believe that considering the age, hours accumulated, and current ski1\S2\m Eagle Creek Ave. S.E., Prior Lake, Minrtesota 55372-1714 / Ph. (952) 447-4230 / Fax (952) 447-4245 AN EQUAL OPPORTUNITY EMPLOYER 1- T 1 T 'I '1T COST RECOVERY SUMMARY FISCAL IMPACT: skid loader trade-in value on this piece of equipment, it should be replaced. Seven manufacturers offer their skid loaders on the State Cooperative Purchasing Program. The low bid of Lano Equipment in the amount of $22,514 is recommended. Including trade in and tax this purchase is $18,439.41. The bids are as follows: Vendor Lano Waconia St. Joseph Ziegler Equipment Farm Supply Equipment Make Bobcat Gehl Case Caterpillar Model 773T 4825DXT 1845C V228 Horse power 56H.P. 57H.P. 56H.P. 54H.P. Price $22,514.00 $24,370.00 $24,085.00 $25,876.21 Trade-In ($5,200.00) ($6,500.00) ($5,500.00) ($7,000.00) Sub Total $l7,314.00 $17,870.00 $18,585.00 $18,876.2l Tax $1,125.41 $1,161.55 $1,208.02 $1.226.95 Total $18,439.41 $l9,031.55 $19,793.02 $20,103.16 Vendor R.D.O. Carlson St. Joseph Tractor Equipment Make John Deere New Holland Case Model 3029T LS 170 75XT Horse power 61 H.P. 52 H.P. 57H.P. Price $26,205.34 $25,242.26 $27,030.00 Trade-In ($7,000.00) ($5,000.00) ($5,500.00) Sub Total $19,205.34 $20,242.26 $21,530.00 Tax $1,248.35 $1,315.75 $1,399.45 Total $20,453.69 $21,558.01 $22,929.45 Our 753 Melroe Bobcat is 46 H.P. and was purchased in 1991 for a cost of $12,500. There are currently 4,119 hours on this machine. An inspection was recently performed on this piece of equipment and it was determined that approximately $4,200.00 worth of parts are needed in repairs. (See attachment A.) Because of its present condition, the past three years this machine has been utilized for light grading and leveling only. In addition, the hydraulics on the 753 are not adequate to handle some of our attachments, i.e., the trencher, blower and the blacktop milling machine. All attachments will work on the new skid steer. Cost Benefit Analvsis The City Council has set some guidelines for purchasing equipment. The criteria and how this purchase addresses each criteria is shown below: Use minimum requirement specifications not listed wants: This machine is being purchased for a variety of functions. The specifications are minimal requirements for this machine to perform its intended function. 2 ALTERNATIVES: RECOMMENDED MOTION: REVIEWED BY: skid loader I [ Use functional requirements not an individual manufacturers soecifications: The specifications were prepared by the State Purchasing Department's employees based upon their experience with equipment and the need expressed by public agencies purchasing from the bid. Bids were provided by the following manufacturers: Melroe John Deere New Holland Gehl Case Caterpillar Receive where JJossible three real bids: Bids were received from six manufacturers with a difference of $4,490.04 from high to low. St. Joseph Equipment Supply bid two different model machines that were comparable in size and horsepower for a total of 7 bids. Time for Citv Council to act: The dead line on the State Purchasing Contract is October 3l, 2001. If the City Council desires additional time, this item could be deferred. Use some form offinancial analvsis to SUJJJJort the JJurchase: As an alternative to purchasing this equipment, we investigated possible lease options. Lano Equipment offers a two-year lease program and provided the following information. The lease to purchase option is as follows: ~ 24 months x $877.57 = $21,061.68 ~ Buyout after 24 months = $5,994.35 ~ Total Cost = $27,065.03 Staff recommends purchasing the 2001 skid steer loader model 773T Bobcat instead of exercising the lease options. The alternatives are as follows: 1. Approve Resolution 0 I-xx authorizing the trade-in of our currently owned 1991 Melroe Bobcat 753 for $5,200.00 and purchase one 2001 Melroe Bobcat 773T for the cost of$18,439.41. 2. Table this item for a specific reason. 3. Deny this agenda item for a specific reason. Staff recommends alternative number 1. 3 1 II fl RESOLUTION 01-xx ~11VNESO~~ RESOLUTION APPROVING THE TRADE-IN OF A 1991 MELROE BOBCAT 753 AND THE PURCHASE OF ONE 2001 MELROE BOBCAT 773T SKID LOADER MOTION BY: WHEREAS, WHEREAS, WHEREAS, WHEREAS, WHEREAS, SECOND BY: The 2001 Equipment Replacement Fund and Matrix identifies the purchase of one skid loader; and The funds for the skid loader will be drawn from the Capital Improvement Program; and The skid loader being replaced is a 1991 Melroe Bobcat 753; and The skid loader will be purchased through the State of Minnesota Cooperative Purchase Agreement which has prepared specifications and received bids as follows: Vendor Lano Waconia St. Joseph Ziegler Equipment Farm Supply Equipment Make Bobcat Gehl Case Caterpillar Model 773T 4825DXT 1845C V228 Horse power 56 H.P. 57 H.P. 56H.P. 54H.P. Price $22,514.00 $24,370.00 $24,085.00 $25,876.21 Trade-In ($5,200.00) ($6,500.00) ($5,500.00) ($7,000.00) Sub Total $17,314.00 $17,870.00 $18,585.00 $18,876.21 Tax $1,125.41 $1,161.55 $1,208.02 $1.226.95 Total $18,439.41 $19,031.55 $19.793.02 $20,103.16 Vendor R.D.O. Carlson St. Joseph Tractor Equipment Make John Deere New Holland Case Model 3029T LS 1 70 75XT Horse power 61 H.P. 52 H.P. 57 H.P. Price $26,205.34 $25,242.26 $27,030.00 Trade-In ($7,000.00) ($5,000.000 ($5,500.00) Sub Total $19,205.34 $20,242.26 $21,530.00 Tax $1,248.35 $1,315.75 $1,399.45 Total $20,453.69 $21,558.01 $22,929.45 The bid of Lano Equipment in the amount of $18,439.41 including tax and trade-in ski~1'1d~3 Adelmann St. S.E., Prior Lake, Minnesota 55372 / Ph. (952) 440-9675 / Fax (952) 440-9678 AN EQUAL OPPORTUNITY EMPLOYER is recommended. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE, MINNESOTA, to approve the purchase of one Melroe Bobcat 773T skid loader through the State of Minnesota Cooperative Agreement from Lano Equipment at a cost not to exceed $18,439.41; and FURTHER, the City Council authorizes the trade of our 1991 753 Melroe Bobcat. Passed this 20th day of February 2001. YES NO Mader Mader Ericson Ericson Gundlach Gundlach Petersen Petersen Zieska Zieska { Seal } City Manager City of Prior Lake skid loader If r 1 II II Attachment A MEMORANDUM DATE: February 14,2001 TO: AL FRIEDGES PARKS SUPERVISOR FROM: JON DONOVAN FLEET MAINTENANCE COORDINATOR SUBJECT: STATUS ON VEHICLE #502 1991 753 Bobcat SERIAL #508611686 4,119 HOURS Engine and drive train: Engine oil leaks, exhaust leaks, hydraulic oil leaks, replace worn out 1 $1,200.00 hoses, replace tires; rims leak air. Steering: Linkage and controls worn out. I $500.00 Frame and cab: Front boom cracked, frame cracked, cab door bent, cab door glass broken. I $2,000.00 Bucket cracked and worn out. I $500.00 TOTAL I $4,200.00 skid loader