5.6. SR 12-19-1994
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ITEM 5.6.
MEMORANDUM
Mayor & City Council
FROM:
Phil E. Hals, Street/Park Supt.
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DATE:
December 19, 1994
SUBJECT: Loader Purchase
On Thursday, December 15, 1994, the Street Department opened bids for the
purchase of a 21/2 cubic yard front end loader. The bids asked for a new
machine or a low hour demo machine with very specific requirements and
also several options. As you can see on the attached bid tabulation, we
received bids for four new machines and two low hour demo machines.
.
The Case loader, bid by St. Joseph Equipment Company was the lowest bid
price at $88,927.50, but it lacked an auto shift transmission, has a gear type
hydraulic pump, a less desirable type of tires, a higher decibel noise level for
the operator, will not be available for 60 to 90 days, and scored lowest on our
in-house evaluation.
The Volvo loader, bid by Sweeney Brothers Tractor Company, has an
excellent price of $93,507.00, plus it has additional features besides those
specified, but it required an additional $2,100.00 adapter to make the quick
coupling device on the boom compatible with our existing attachments.
The new CAT IT-28F, bid by Ziegler Inc., at $102,596.78 is an excellent
machine, but the price is too high compared to the other machines bid.
The John Deere 544 GTC, bid by Midwest Machinery Inc., at $105,861.00
again is an excellent machine, but is not worth the extra money.
The demo CAT IT28F, bid by Ziegler Inc., with 278 hours and a bid prices of
$93,022.43 meets our specifications, is similar to our present loader for
operation and maintenance, is immediately available, offers a $9,000 cost
savings from the price of a new machine, and still carries a one year
warranty. The only option that I feel is needed at this time is a reversible
snow plow for an additional $4,825.51, including sales tax, leaving a total
package cost of $97,847.94.
.
The demo CAT IT 28F bid by Ziegler Inc., with 537 hours and a bid price of
$84,103.00 also meets our specifications, is immediately available, offers
13065 Orono Parkway · P.O. Box 490. Elk River, MN 55330. (612) 441-7420. Fax: (612) 441-7425
.
substantial money savings over any of the other machines bid and carries a
one year warranty. The only option that I feel is needed at this time is a
reversible snow plow for an additional $4,825.54, including sales tax, leaving
a total package cost of $88,928.51.
Mark Thompson and I will be making a visual inspection of the Caterpillar
machines on Monday, and will be present at the City Council meeting to
discuss the machines and share a video with the Council. We will have a
recommendation at that time.
The funds have been budgeted for 1995, and Lori Johnson has indicated that
if the Council accepts this bid to purchase the loader it will show up as a
1994 payable, but the monies will not be paid until 1995. The cost savings
we realize will more than justify the extra transaction.
.
council:loaderbd
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City of 11
Ell{
MEMORANDUM
TO:
Mayor and City Council
FROM:
Phil Hais
DATE:
December 19, 1994
V <\0 f\,0~
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SUBJECT: Loader Recommendation
Demo Machine
Reversible Plow
$84,103.05 Inc. Tax
5.325.00 Inc. Tax
$89,428.05
.
Budget Amount
Remaining Balance
110.000.00
20,571.95
Suggested use for remaining balance:
Sell one 1978 tandem 4 x 6 dump truck for approximately $5000.00.
Purchase 1 late model tandem 4 x 6 dump truck for approximately $25,000.00.
.
s:philmemo
P.O. Box 490 . 13065 Orono Parkway · Elk River, MN 55330 · (612) 441-7420 · Fax: (612) 441-7425