CR 2000-178 Award Bid For One Used Motor Grader
CITY Or:
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. 10-30-2000 HOPKINS Council Report 2000-178
Award Bid for One (1) Used Motor Grader
Proposed Action
Staff recommends adoption of the following motion: Move that the COlIDCil
awards bid to Zeigler Caterpillar for one (1) used 1989 Caterp1l1ar, Model
140-G grader with snow wing, Price w/trade $65,995.00.
Overview
In the year 2000 Capital Equipment Plan the city budgeted $80,000 for the
purchase of a used motor grader. The existing motor grader is 24 years old.
It is used by the Street Department for snow removal and grading.
.
Primary Issues to Consider
. Staff recommendation
. Why purchase a used Motor Grader
. Is the amount within Budget
Supportint! Information
. Bid Tabulation
. Picture of Bid Unit
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Norbert Kerber, BuildinglEquipment Superintendent
.
Financial Impact: $65,995.00 Budgeted: Yes Source: Equip. Replacement Fund
Related Documents (CIP, ERP, etc.): E.R.P.
Notes: Used Motor Grader
. Primary Issues to Consider
Staff Recommendation:
We received two bids from Zeigler Caterpillar for a 1993 Caterpillar Model
140G and a 1989 Caterpillar Model 140G both with snow wing option. City
staff has reviewed and demonstrated both bid machines in detail. The bidder
has included as part of the bid a 3D-day warranty for the bid machine. It is
staff recommendation to purchase the 1989 unit over the bid 1993 unit based
on overall condition and lowest cost to the city.
Why Purchase a Used Motor Grader:
The proposed Motor grader is primarily used by the Street Department for
snow removal. It is an essential machine that is used to plow main snow
routes and during cleanup on Main Street. It is also used for heavy ice
removal and in the off-season used occasionally for light grading. Because
. of the seasonal nature of this machine City staffhas decided we could not
justify a new machine, however we felt a quality used Motor Grader would
be adequate to supply our needs for the next 15 to 20 years.
Is the Amount Within Budget:
In 1997 when the current grader was scheduled to be replaced we had
$139.000 in the E.R.P. However due to requests to lower cost we optioned to
purchase a used unit and move the date of replacement up to the year 2000
and set aside $80,000 as a budget amount. The purchase price of the Staff
recommended unit is $83,495. The trade in value of our 24-year-old John
Deere is $17,500 making the out of pocket cost $65,995 or $14,005 less than
budget.
.
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