02-25-2002 CC - Laserfiche WebLink

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Item No. 6G Type of Business: CA WK: Work Session; PH: Public Hearing; CA: Consent Agenda; CB: Council Business City of Mounds View Staff Report To: Honorable Mayor and City Council From: Greg Lee, Director of Public Works Item Title/Subject: Resolution No. 5718 Approving the Purchase of Two Replacement Bobcat Skidsteer Loaders Meeting Date: February 25, 2002 Background: The City of Mounds View has ownership of two Bobcat skidsteer loaders which are scheduled for replacement in early 2002. These are extremely versatile pieces of equipment and are indispensable for any Public Works operation. It has recently come to my attention that the City has been taking advantage of a state offered program that allows government agencies to replace their skidsteer loaders on an annual basis. This has been an ongoing program for the last three years. The state program allows governmental agencies the opportunity to purchase new skidsteer loaders at state contract prices. It also offers high trade-in value on previously purchased loaders. The 2002 state contract quote is as follows:  Bobcat loader $ 19,450.50  Less trade in value on last year’s model ($17,950.00) Sub Total $ 1,500.00 Sales Tax $ 97.50 TOTAL $ 1,597.50 This represents an incredible value and cost saving to the City. Details include: 1. The Public Works Department currently utilizes each loader from three hundred (300) to four hundred (400) hours annually. This translates into extremely low total equipment use cost of 4 to 5 dollars per hour. 2. With this extensive use, the tires would need to be replaced annually. This alone represents a cost of $600 for a good set of tires. 3. In comparison, an eight hour Bobcat loader rental is approximately $180- $200. Clearly the City derives a benefit by participating in this state program.