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REQUEST FOR COUNCIL CONSIDERATION Agenda Section: 6. <br /> 111706 93-456WS <br /> STAFF REPORT Report Number: <br /> n AGENDA SESSION DATE April 5, 1993 Report Date: 4-1-93 <br /> DISPOSITION <br /> • <br /> Item Description: <br /> Trade In Proposal for Skid Loader <br /> Administrator's Review/Recommendation: <br /> - No comments to supplement this report <br /> - Comments attached. <br /> Explanation/Summary (attach supplement sheets as necessary.) <br /> SUMMARY; <br /> In 1992 the City purchased a New Holland skid loader from Carlson <br /> Equipment. The vendor recently approached the City with an offer <br /> to replace the skid loader and possibly continue in the future <br /> with annual replacements. The proposal is partially sponsored by <br /> Ford / New Holland through their incentive packages to governmen- <br /> tal agencies. The agency must own and maintain the skid loader <br /> for one year, and provided the agency has a good preventive <br /> maintenance program and the skid loader has been kept in good <br /> condition, the agency is allowed to trade in the skid loader for <br /> the model year price increase. <br /> The benefits are that the skid loader would continue to be under <br /> factory warranty, wear items like tires need not be replaced by <br /> the agency, and equipment maintenance is reduced. The cost to the <br /> City is $1,000 . During this year, the skid loader will require <br /> new tires and an annual tune-up and service, which would cost <br /> approximately $800. Therefore, the out of pocket cost is about <br /> $200 more than the tire replacement and service. Since the fac- <br /> tory warranty is extended and there is less likelihood of down <br /> time and repairs, this appears to be a good investment. <br /> Staff requests Council direction on this matter. <br /> Ric 'ne or <br /> City Engineer/Director of Public Works <br /> RECOMMENDATION: <br />