3.13. SR 02-20-2007
City of Elk River
REQUEST FOR COUNCIL ACTION
Agenda Section Meeting Date
Consent February 20, 2007
Item Description
Consider Street De artment Motor Grader Bids
Item Number
3.13.
Prepared by
Phil Hals, Street Superintendent
Tim Simon, Finance Director
Reviewed by
Lori ohnson, Ci Administrator
.
Introduction
On January 2, 2007, Council authorized the Street department to advertise for a used motor grader. The
lowest bid was $101,175 for a 2002 motor grader with 5,136 hours, this included trade in of the city's
1978 CAT 120G motor grader. The second lowest bid was $5,218.50 higher, for a 2007 motor grader
with zero hours. This bid also included the trade in of the city's motor grader. Staff would like to re-
advertise for a used motor grader with a bid alternate of a new grader, at which time it can be assessed
which would be more favorable to the city long-term.
Discussion
The lowest bid, a 2002 motor grader with 5,136 hours, would serve the city's needs for 10 to 12 years at
the projected usage rate of 500 hours per year. The tires on this machine are at 50% tread remaining
which would amount to a $4,500 tire replacement cost within the next two years. On the other hand, the
second lowest bid for the new machine would serve the city's needs for 20 plus years and comes with a
one year full machine warranty. An additional warranty can be purchased after one year if deemed
necessary.
Financial Impact
The streets department has budgeted $185,150 in 2007 for the purchase of equipment. The grader is
budgeted at $100,000, plus the trade in value of our 1978 CAT 120G motor grader. If the price of the
grader (which after the re-advertisement will be new or used) exceeds the $100,000, the remaining
equipment purchases will be reduced to stay within the total budget for 2007.
Attachments
. Bid attachment
Action Requested
Staff requests that Council reject the bids received and re-advertise for the purchase of a used motor
grader with a bid alternate of a new motor grader.
Council Action
Motion by _
Second by _
Vote
Follow Up
C: \Documents and Settings \jmiller\Local Settings \ Temporary Internet Files\ OLK3E\ Used Grader.doc
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