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HomeMy WebLinkAbout5C - Purchase of Skid Loader AGENDA # PREPARED BY: SUBJECT: DATE: INTRODUCTION: BACKGROUND: DISCUSSION: STAFF AGENDA REPORT SC AL FRIEDGES, PARKS SUPERVISOR CONSIDER APPROVAL OF RESOLUTION 98-XX AUTHORIZING STAFF TO PURCHASE (1) ONE 1998 OR CURRENT MODEL SKID LOADER AND ATTACHMENTS. APRIL 6,1998 The purpose of this agenda item is to authorize the purchase of (1) one 1998 or current model skid loader and attachments based upon the quotes identified in the resolution. At the May 19, 1997 City Council meeting, . the Council adopted an Equipment Replacement Fund and Matrix. Identified in the matrix is $23,730.00 plus tax for acquisition of this piece of equipment. This equipment is identified in the matrix as a replacement, however, staff is requesting that we keep the older skid- loader for light duty until we add another skid-loader to the fleet in 2002 (explanation below). The attachments that would be traded in at this time are the auger and blower which are well worn and in need of replacement. This piece of equipment and its numerous applications are relied upon daily by the park maintenance staff. Because of its compact size and zero turning radius, this machine is especially effective for many park project applications. It's 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 and blowing snow, transplanting trees, and pulverizing black dirt. Purchasing this skid-loader would relieve the pressure on the 1991 Melroe Bobcat 753 that we currently operate. Our existing 1991 Melroe Bobcat 753 skid loader has accumulated 3520 hours and is worth approximately $5,500.00 if we were to trade it in at this time. If we were to keep this Bobcat we would use it for "light duty" i.e., operating the 32" tree spade and small landscaping and grading projects. The current practice is to rent an additional skid loader during the construction season to complete our scheduled projects. With the purchase of a new skid loader and by retaining the old Bobcat, we would eliminate the need to rent the additional machine, which is a cost savings of approximately $3,000.00-$4,000.00 per year. These rental rates will AG SKID.DOC 1 16200-Eagle Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 AN EQUAL OPPORTUNITY EMPLOYER increase over the years and the costs will escalate with the increase of more parks and projects. With the additional workload that we are facing, (i.e. the development of additional trails, road, parking lot, and athletic fields at the Ponds; the installation of seven new play structures; the construction of trails for the Five Hawks Nature Center; and the daily maintenance activities;) the need for a new skid loader as well as a second skid loader is substantial. As identified in the Equipment Matrix a second skid loader is scheduled to be purchased in the year 2002, and at that time we would trade in the older Bobcat. COST RECOVERY SUMMARY: Existin!! Eauioment Additional Eauioment Equipment Description: Equipment Condition: I Equipment Hrs./Miles Primary Use Additional Use Melrae Bobcat 753 Fair i 3520 i Light Grading , Leveling, Transplanting Trees Melrae Bobcat 763H New jO i Grading, Leveling , Snow Removal, Blowing, Sweeping, Trenching, Auguring Useful Life/Depreciation Term Equipment Age: Acquisition Date: Acquisition Cost: Matrix Budget Amount Depreciation .1 $12,500 Present /Trade-in Value i $5,500 Projected Equipment Retention Sched i 7 Years .1 * 1 0 Years * If there are two skid loaders in the fleet longevity increases to 10 years. 7 Years 7 Years 1991 $12,500 *10 Years o 1998 $23,949.93 tax included $23,730.00 tax not included AG_SKID.DOC 2 ,. r ALTERNATIVES: 1.) Approve Resolution 98-XX authorizing the purchase of one Melroe Bobcat 763H skid loader with blower and auger attachments in the amount of $23,949.93 2.) Approve Resolution 98-XX authorizing the purchase of one Melroe Bobcat 763H skid loader with blower and auger attachments. Trade-in our currently owned Melroe Bobcat 753 skid loader and rent an additional skid loader when necessary. 3.) Table this agenda item for a specific reason. 4.) Deny this agenda item for a specific reason. RECOMMENDATION: Staff recommends Alternative No.1 ACTION REQUIRED: Motion and second to approve Resolution 98-XX authorizing the purchase of one Melroe Bobcat 763H skid loader with blower and auger attachments in the amount of$23,949.93. ~h~ \~ Reviewed by: 55 ecreation Director AG_SKID.DOC 3 MOTION BY: WHEREAS, WHEREAS, RESOLUTION 98-xx RESOLUTION APPROVING THE PURCHASE OF ONE (1) SKID LOADER AND ATTACHMENTS SECOND BY: the 1998 Equipment Replacement Fund and Matrix identifies the purchase of one (1) additional skid loader and, bids were solicited, received, and tabulated as follows, and C Vendor: St. Joseph Equipment R.D.O. Make Case John Deere Model 1840 6675 Skid Loader $18,200.00 $20,749.00 67" Blower 4,400.00 4,150.00 Auger 1,750.00 2,099.00 Trade Auger (200.00) (200.00) Trade Blower (500.00) (500.00) Subtotal $23,650.00 $26,298.00 Tax 1537.25 1709.00 TOTAL $25,187.25 $28,007.00 WHEREAS, After analyzing the bids, the apparent lowest responsible bidder is Lano Equipment in the amount of$23,949.93. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE, Minnesota, Lano Equipment be awarded the bid for the purchase of one (1) Melroe Bobcat 763H skid loader and attachments in the amount of$23,949.93. Passed and adopted this day of ,1998. YES NO Mader Kedrowski Schenck Petersen I Wuellner I Mader Kedrowski Schenck I Petersen I Wuellner { Seal } City Manager City of Prior Lake