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6.3. ERMUSR 10-15-2003 Elk River Municipal Utilities 322 King Avenue phone: 763.441.2020 Elk River,MN 55330 Fax:763.441.8099 October 7, 2003 To: Elk River Municipal Utilities Commission John Dietz Jerry Takle James Tralle From: Bryan C. Adams Subject: Purchase of Skid Steer The 2003 budget contains a $35,000 item to replace our existing 1970's Vintage Bobcat 945 skid steer. This existing skid steer is used to load and unload trucks with our material. This skid steer is showing its age and is very marginal at safely handling the large cable reels. This unit is also utilized for snow removal. The proposed 2004 budget also contains $40,000 to purchase another forklift/front end loader to safely carry the heavier loads. The dilemma that we have is the fork truck has only one use, that being lifting and carrying material. A skid steer/front end loader type machine is multi- function. They can act as a fork truck as well as plow snow or move dirt. The largest skid steer made today, does not have the capacity of our existing machine. Buying a machine to handle the largest and heavier items is to large for the everyday use. We have researched a number of prices of equipment to satisfy our needs, along with having several discussions with staff on the best type of equipment. Staff is recommending we purchase a 3000#capacity skid steer to be used for the everyday material handling and a 10,000# capacity front end loader for the heavier item. Staff is asking authorization to spend up to $35,000 for a 3000# ±capacity skid steer with bucket and forks. This may be a new or used machine. In 2004, staff will be asking authorization to purchase a used 10,000# ±capacity front end loader with bucket and forks and trade in the existing Bobcat 945 for the budget amount of$40,000.