The URL can be used to link to this page

Home My WebLink About10E - Skid Steer Loader MEETING DATE: AGENDA # PREPARED BY: REVIEWED BY: AGENDA ITEM: DISCUSSION: 16200 Eagle Creek Avenue S.E. Prior Lake, MN 55372-1714 CITY COUNCIL AGENDA REPORT MAY 17, 2004 10E AL FRIEDGES, PARKS AND FLEET MAINTENANCE SUPERVISOR BUD OSMUNDSON, PUBLIC WORKS DIRECTOR CONSIDER APPROVAL OF A RESOLUTION AUTHORIZING PURCHASE A 2004 SKID STEER LOADER Historv The purpose of this agenda item is to authorize the purchase a 2004 S185 Bobcat skid steer loader through the State of Minnesota Cooperative Purchasing Program as authorized in the 2005-2009 Capital Improvement Program. Current Circumstances A skid steer loader is relied upon daily by streets, utilities and parks maintenance staff. This piece of equipment 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. Because of its compact design and zero turning radius this machine becomes especially effective for many tasks and projects. With our various attachments, this piece of equipment is also used for drilling holes for posts or tree planting, trenching for drain tile, irrigation installation, sweeping, blowing snow, milling and leveling blacktop, backfilling water and sewer main breaks, loading trucks, removing trees and brush and other miscellaneous tasks. This skid loader equipped with an angle broom and snow bucket, will be relied on to assist with snow removal operations on Main and Dakota Street during the winter months. The new skid steer is compatible with all our current attachments. Our existing skid steer loader is a 1991 753 Melroe Bobcat which has accumulated 2350 hours. Typically, with the type of usage these skid steer loaders are experiencing, the engines, transmissions and drive trains are capable of operating 3,000 hours before needing major repairs or overhauls. The 2005 - 2009 Equipment Replacement Matrix is proposes to replace the skid steer loaders every 6 years rather than every 10 years as is the case under the 2004-2008 CIP. Although 6 years is a suggested replacement schedule for this type of equipment, as with any other piece of equipment, the maintenance and repair costs will be analyzed prior to requesting Council approval for future replacements. In some cases a particular piece of equipment may experience "harder" use than another machine of the same make or model. The skid steer loader to be replaced has various problems. At this point, the City can trade in the 1991 753 Melroe Bobcat and receive $7000 as a trade-in on a new Bobcat. We believe that considering the age, hours accumulated, and current trade in value of this piece of equipment, it should be replaced. C:\Documents and Settings\KellyM\Local Settings\Temporary IntWWV1j~ke8B<bl1k:at2.DOC Phone 952.447.4230 1 Fax 952.447.4245 COST RECOVERY SUMMARY FISCAL IMPACT: We have contacted three manufacturers that offer their skid steer loaders on the State Cooperative Purchasing Program. The low bid of Lano Equipment is the amount of $25,914.65 is recommended. Lana Equip Ziegler St. Joseph Equip Make Melroe Cat Case Model S185 242B 70XT Horsepower 56 57 79 Price $23,449.00 $28,230.00 $27,493.00 Broom $2,884.00 $5,080.00 $4,778.00 Tracks $5,000.00 $2,420.00 $5,821.00 Trade in $7,000.00 $8,100.00 N/A Sub-total $24,333.00 $27,630.00 $38,092.00 Tax $1,581.65 $1,795.95 $2,475.98 Total $25,914.65 $29,425.95 $40,567.98 Our 753 Melroe bobcat is 46 horsepower and was purchased in 1991 for approximately $12,500.00. Lano Equipment is offering $7,000.00 for trade-in. The hydraulics of the 753 model, purchased in 1991, are not adequate to handle some of our attachments, Le., the trencher, blower and 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 criterion 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. Use functional requirements not an individual manufacturers specifications: The specifications were prepared by the State Purchasing Department's employees, based upon their experience with equipment and the need expressed by public agencies from the bid. Receive where possible three real bids: Bids were provided by the following manufacturers: Melroe, Case and Caterpillar Time for City Council to act: If the City Council desires additional time, this item could be deferred. C:\Documents and Settings\KellyM\Local Settings\Temporary Internet Files\OLKD\2004 s 185 bobcatI.DOC ALTERNATIVES: RECOMMENDED MOTION: REVIEWED BY: Use some form of financial analvsis to support the purchase: As an alternative to purchasing this equipment, we investigated possible lease options. Lano Equipment offers a lease program for approximately $3,500.00 per year. This is not a guaranteed price and is based on the cost increases of the most current year machine. Staff recommends purchasing the 2004 skid steer loader model S185 Bobcat instead of exercising the lease options. The alternatives are as follows: 1. Approve Resolution 04-XX authorizing the trade in of our currently owned 1991 Melroe Bobcat for $7,000 and purchase one 2004 Melroe Bobcat S185 with a broom and tracks for a total cost (tax included) of $25,914.65 from Lano Equipment. 2. Table this agenda item for a specific reason. 3. Deny this agenda item for a specific reason and provide staff with direction. Staff recommends alternative number 1. Bud C:\Documents and Settings\KellyM\Local Settings\Temporary Internet Files\OLKD\2004 s 185 bobcatl.DOC 16200 Eagle Creek Avenue S.E. Prior Lake, MN 55372-1714 RESOLUTION 04-XX A RESOLUTION APPROVING THE TRADE IN OF A 1991 MELROE BOBCAT 753 AND THE PURCHASE OF ONE 2004 MELROE BOBCAT S185 SKID LOADER WHEREAS, WHEREAS, WHEREAS, WHEREAS, WHEREAS, MOTION BY: SECOND BY: The 2004 Equipment Replacement Fund and Matrix is amended to include the purchase of one 2004 S 185 Melroe Bobcat skid steer 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: Lane Equip Ziegler St. Joseph Equip Make Melroe Cat Case Model S185 242B 70XT Horsepower 56 57 79 Price $23,449.00 $28,230.00 $27,493.00 Broom $2,884.00 $5,080.00 $4,778.00 Tracks $5,000.00 $2,420.00 $5,821.00 Trade in $7,000.00 $8,100.00 N/A Sub-total $24,333.00 $27,630.00 $38,092.00 Tax $1,581.65 $1,795.95 $2,475.98 Total $25,914.65 $29,425.95 $40,567.98 The bid of Lana Equipment in the amount of $25,914.65 including tax and trade-in is recommended. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE, MINNESOTA, to: approve the purchase of one Melroe Bobcat S 185 skid loader through the State of Minnesota Cooperative Agreement from Lano Equipment, at a cost not to exceed $25,914.65, with the funding from the Equipment Replacement Fund. C:\Documents and Settings\KellyM\Loca1 Settings\Tem~iiyafJ}1<iOOakB\mD?n; 185 bobcatl.DOC Phone 952.447.4230 1 Fax 952.447.4245 FUTHER, the City Council authorizes the trade of our 1991 753 Melroe Bobcat. Passed this 17th day of May 2004. YES NO Haugen Haugen LeMair LeMair Petersen Petersen Zieska Zieska Blomberg Blomberg { Seal } Frank Boyles, City Manager C:\Documents and Settings\KellyM\Local Settings\Temporary Internet Files\OLKD\2004 sl85 bobcat 1. DOC