Focus Area: Infrastructure
Staff Contact: Mary Jaeger/Zach Hardy
Subject: Consideration of lease agreement with KC Bobcat for three compact track loaders.
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title:
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Consideration of lease agreement with KC Bobcat for three compact track loaders.
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Summary:
The city has leased compact track loaders since 2020, finding it to be a more economical option over purchasing new and maintaining internally. A new compact track loader costs between $110,000 and $120,000 to purchase, and maintenance needs increase as the loaders run up hours of heavy construction use.
For 2026, staff are recommending a new vendor for our compact track loader lease. The new vendor provides the following benefits.
• The new lease rate will be for 3 years, so we will not have to renegotiate the lease annually, saving money by locking in the rate.
• The lease includes 100% maintenance and oil changes for the full 3-year term, so we will have minimal downtime and no additional maintenance responsibilities for our internal fleet services group.
• The customer service and maintenance departments at KC Bobcat provide improved service.
• City staff prefer operating Bobcat machines because of their performance and comfort in the field.
The City of Olathe will save $1800 per year in comparison to previous lease agreements and $5400 over the full lease term. The approval of a new three-year lease agreement for the three loaders will ensure cost efficiency and operational effectiveness.
These three leased compact track loaders will be utilized by the Street Maintenance Section of Infrastructure, in the maintenance, repair and construction of city streets.
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Financial Impact:
$147,453 for a three-year agreement, to be paid from the General Fund.
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Action Needed:
Consideration of a three-year lease agreement with KC Bobcat.
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Attachment(s):
A. Contract.