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<br />Item No: 7F <br />Meeting Date: July 11, 2011 <br />Type of Business: CB <br />Administrator Review: ________ <br /> <br /> <br />City of Mounds View Staff Report <br /> <br /> <br /> <br /> To: Honorable Mayor and City Council <br /> From: Don Peterson, Public Works Supervisor <br />Item Title/Subject: Resolution 7810 Approving a Trade-in Program for Skid-Steer units <br />#130 & #136 <br /> <br />Background: <br />For 12 years the City has participated in an annual trade-in program with Tri-State <br />Bobcat Inc. of Hudson, WI. This program has been a great benefit to the City. Each year <br />the City is able to purchase a new Bobcat skid-steer for a fraction of the original price. <br />New units cost an average of $29,500.00. With the trade in program the City is able to <br />purchase a new unit for less than $5,000.00. In addition, tires are typically worn down <br />after one year of patching streets and the City avoids replacement costs (approx. <br />$1,000) by obtaining a new unit. The unit is also under warrantee during this time, so <br />any parts or repairs needed are performed by Tri-State Bobcat on-site. <br /> <br />Discussion: <br />This year both unit’s #136 and #130 are eligible for the trade-in program. Staff has been <br />informed that the total cost for this program is higher due to the fact that for the last few <br />years the trade-in program was not available and unit #136 has never been traded in. <br />With higher hours and an older unit, the cost associated with the trade-in increases. At <br />this time we will also be upgrading to a larger unit. Staff feels that having two units of <br />the same size will be more productive as the smaller unit is not capable of operating <br />many of the implements used in day to day work schedules. <br /> <br />The 2011 budget includes $7,300.00 in accounts 100-4470-4010 and 700-4823-4010 <br />for the cost of the trade-in program. The cost to participate in the upgrade program <br />would be $8,329.56; $1,029.56 over the budgeted amount which can be funded from <br />700-4823-4010. This trade-in program is recognized through the Cooperative <br />Purchasing Venture (CPV), a members-only program that enables participating <br />governmental units, such as Mounds View, to purchase goods and services under <br />competitive contract terms established by the State of Minnesota. <br /> <br />Recommendation: <br />Staff is recommending City Council’s approval to participate in this trade-in program <br />through Tri-State Bobcat in the amount of $8,329.56 to be funded as follows: $3,800.00 <br />from 100-4470-4010 and $4,529.56 from 700-4823-4010. <br /> <br />Respectfully Submitted <br /> <br /> <br /> <br />Don Peterson, Public Works Supervisor