Agenda Packets - 2014/10/13 - Laserfiche WebLink

Home Browse Search

Item No:7H Meeting Date: October 13,2014 Type of Business: CB Administrator Review: ________ City of Mounds View Staff Report To: Honorable Mayor and City Council From: Don Peterson, Public Works Supervisor Item Title/Subject: Resolution 8315 Approving a Trade-in Program for Bobcat Units #130 & #136 Background: For 15 years the City has participated in an annual trade-in program with Tri-State Bobcat Inc. of Hudson, WI. This program has been a great benefit to the City. Each year the City is able to purchase a new Bobcat skid-steer for a fraction of the original price. New units cost an average of $35,500.00. With the trade-in program the City is able to purchase a new unit for less than $5,500.00 each. Discussion: This year both unit’s #136 and #130 are eligible for the trade-in program. Staff has been informed that the total cost for this program is higher due to the fact that tier 4 emission standards have been implemented for compact equipment. This standard is part of the federal Clean Air Act law. This law gave a time line for compliance for compact equipment such as bobcats, from 1998-2015, in order to meet these new emission standards a tiered or stepping system was put in place based on horse power of the engine. New standards set in place in 2012 for emissions on compact equipment with engines between 75-175hp were put into place as part of the overall tier 4 emission standard, this standard effects the bobcats the City uses. The City is faced with a pay now or pay later scenario. If the City does not participate this calendar year with the higher cost of the trade-in with the tier 4 emissions, a larger increase will be seen next year because the trade-in value on the current units will drop. This is a onetime charge for the new emissions standard; the cost in 2015 will return to $3,500.00. The 2014 budget includes $6,300.00 in accounts 100-4470-4010 and 700-4823-4010 for the cost of the trade-in program. The cost to participate in the trade in program with the tier 4 emission standards is $10,595.68; $4,295.68 over the budgeted amount which can be funded from 700-4823-4010, 700-4823-1230, 700-4823-1700, 100-4470-1230, 100-4470-1700 and 100-4470-4010. This trade-in program is recognized through the Cooperative Purchasing Venture (CPV), a members-only program that enables participating governmental units, such as Mounds View, to purchase goods and services under competitive contract terms established by the State of Minnesota. Recommendation: Staff is recommending City Council’s approval to participate in this trade-in program through Tri- State Bobcat in the amount of $10,595.68 to be funded as follows: $2,800.00 from 100-4470- 4010, $1,073.92 from 100-4470-1230, $1,073.92, from 700-4823-4010, $3,500.00 from 700- 4823-1230, and $1,073.92 from 700-4823-1700, $1,073.92 Respectfully Submitted Don Peterson, Public Works Supervisor