2024.07.15 CC Packet - Laserfiche WebLink

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CITY OF HUGO CITY COUNCIL AGENDA REPORT TO: Bryan Bear, City Administrator FROM: Mike Loeffler, Public Works Supervisor SUBJECT: Purchase of Bandit 15XP Wood Chipper DATE: For the City Council Meeting of July 15, 2024 BACKGROUND During the winter months, Public Works staff perform tree trimming/removal along all public road right of ways. For the past 18 years, staff has rented wood chippers to aid in this process. This had always been more economical than owning a chipper. In 2020 chipper rentals began to increase in price and become less available to rent. By 2023 many vendors discontinued rentals in favor of new chipper sales, while the available rentals had continued increasing becoming less economical to rent. PROPOSED PURCHASE PROCESS Staff began looking at purchase options during this time, and found, not unlike vehicle sales, that demand was high, and availability was low. This was due in part to equipment purchased through the Mn/DOT contract have been at a lower priority to the manufacture over retail purchases. In 2024 chipper sales have opened up with the manufacture for government contracts. Staff is seeking Council approval to purchase a Bandit wood chipper. If approved by the City Council, the chipper would be purchased using the Sourcewell Cooperative Contract, which is the equivalent to the Mn/DOT Cooperative Purchasing Venture assuring that the City will receive the best price available. This has been reviewed with Finance Director, Anna Wobse and Public Works Director, Scott Anderson and money is included in the 2024 budget to cover this purchase. DESIRED ACTION Staff recommends the City Council authorize the purchase of a Bandit 15XP wood chipper as outlined in the quote from Tri-State Bobcat for the amount of $64,586.80. Please see the attached equipment specs and quote.