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M:\MasterFiles\1999 thru 2010\2002\City Council\Council Packets\01-28-02\Item 06N--Reso 5687, Authorizing Staff to Seek Repayment for Fitness Equipment--Miller.doc CONFIDENTIAL TO: CITY COUNCIL FROM: KATHLEEN MILLER, CITY ADMINISTRATOR SUBJECT: COMMUNITY CENTER EXERCISE EQUIPMENT DATE: JANUARY 7, 2002 At the December 10, 2001 City Council Meeting, the City Council directed me to: 1. Contact Icon to determine what the City of Mounds View was charged for five pieces of exercise equipment. 2. Review the payment made to Team Sport Specialties (TSS). 3. Determine if there was a difference between what TSS was billed by Icon and what the City paid to TSS. I contacted Nova Hanke at Icon (a distributor for Reebok) and requested that a copy of the invoice for the merchandise be sent directly to me. After several days I received a voice mail from Ms. Hanke stating that her legal counsel has advised her not to have any further involvement with the City of Mounds View and not to provide any further information to the City. I called Ms. Hanke and asked if she would be willing to verbally verify whether the information I had was correct. She did. Results: The exercise equipment that was shipped included the following: Item Number Quantity Unit Price Total RBTL1399 3 $840.00 $2,520.00 RBSY8258 1 $480.00 $ 480.00 RBEL6808 2 $390.00 $ 780.00 $3,780.00 The City of Mounds View received all but one of the items numbered RBTL1399. The Total cost to the City for merchandise received was $2,940.00. Shipping costs were $550.00 for the six items. According to Ms. Hanke, one-third of the shipping cost would have been attributed to the item numbered RBSY8258, at a cost of $183.34. The remaining shipping cost $366.66 was divided by five, with a cost of $73.33 for each item or a cost of $293.23 for the four items the City received. Total cost for equipment and shipping equals $3,416.67.