6.1. SR 03-19-2007
City of
Elk __
River
City of Elk River
REQUEST FOR COUNCIL ACTION
Agenda Section Meeting Date
Administration March 19,2007
Item Description
Consider Motor Grader Bids and Other E ui ment Purchases
Item Number
6.1.
Prepared by
Phil Hals, Street Su erintendent
Reviewed by
Lori ohnson, Ci Administrator
Introduction
The capital outlay item of the 2007 general fund budget identifies $185,150 for the purchase of the
following Street Department equipment:
. Used motor grader
· Used steel roller
. Flail head for the roadside mower
. One ton truck with box, hoist & plow
$100,000
10,650
8,500
66,000
Discussion
Two sealed bids were received on March 13,2007 for the purchase of a motor grader and are as follows;
. Sweeney Brothers, Inc. New motor grader $104,000
Additional wiring for radio & beacon 545
Additional work lights 310
Additional hydraulics 1.745
$106,600
6.929
$113,529
Sales Tax
TOTAL COST
.
Ziegler's, Inc.
$101,175
Used John Deere Model 770 CH
(With 5248 hours, tax included)
Delivery 600
TOTAL COST $101,775
The other equipment prices are the lowest prices for comparable equipment for the State of Minnesota
equipment contract bid and are as follows;
. Flail mower attachment - Diamond Mowers, Inc. (tax included)
· One ton truck cab & chassis - Elk River Ford (tax included)
. Box, hoist and plow equipment - Aspen Equipment (tax included)
$ 7,375.13
$35,987.40
$28,207.70
Since the motor grader purchase went over the original estimate, Staff feels that it is in the best interest of
City Street Department to delay the steel roller purchase and use those funds to supplement the motor
grader purchase.
FinanciaJ Impact
Funding to be from the capital outlay item of the 2007 general fund budget, with total funds available of
$185,150.
$: \Council\Phi1\3-19-07 Purchase street dept equipment.doc
Attachments
Attached please find financial information from Tim Simon, Finance Director.
Action Requested
Staff requests City Council's authorization for the purchase of the following equipment:
. New motor grader from Sweeney Brothers, Inc. for $113,529.
. Roadside flail mower from Diamond Mowers, Inc. for $7,375.13
. Ford F550 truck cab and chassis from Elk River Ford for $35,987.40
· Dump box, snow plow, and sander for the F550 from Aspen Equipment for $28,207.70
The total amount of the above equipment purchases to be $185,099.23.
Council Action
Motion by_
Second by _
Vote
Follow Up
S:\Council\Phil\3-19-07 Purchase street dept equipment.doc
FINANCIAL COST ANALYSIS
NEW & USED MOTOR GRADER
Useful life of new motor grader: 20 years
10,000 hours
Analysis of bids received New Used
U sefullife years 20 10
U sefullife hours remaining 10,000 :1:5,000
Bid Price $113,529 $101,775
Cost per year $ 5,676 $ 10,178
Cost for 10 years $ 56 760 $101 775
Lowest bid based on useful life cost is the new motor grader from Sweeney Brothers.
Note: The used motor grader cost does not include cost of approximately $4,500 for new tires that
will be needed within the next two years.
s: \Counci1\Phil\3-19-07 Purchase street dept equipment. doc