Minutes - 2006/03/27 - Laserfiche WebLink

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Mounds View City Council March 27, 2006 Regular Meeting Page 24 • stressed it is a significant waste of Staff time and salary by doubling up on the work that the State has already done. Councilmember Gunn asks what happens to an item if it not sold when it is put up for auction. Director of Public Works Lee stated the City would take back the equipment. City Administrator Ulrich suggested that the equipment could be taken to the dealer to receive the trade-in value if it did not sell at auction. Director of Public Works Lee stated the reserve bid could be placed at $1,100 to make up for the 10 percent auction charge, but for $1,000, it is a lot more time and effort hauling the equipment back and forth to auction. Finance Director Beer stated that sales tax could be deducted if a trade-in is received from the dealer, so the reserve price would need to be increased even more. Councilmember Thomas stated that the City would have to wait to buy the replacement mower until it is determined if the old mower is sold at auction. MOTION/SECOND: GUNN/THOMAS. To waive the reading and approve Resolution 6779 Approving the Purchase of a Replacement Mower for the Parks Division. A es-4 Na s- n i y y 0 Motio carr ed. Councilmember Stigney stated he would like to see that the State bid process is in the City's benefit because he has nothing to back it up. He stated he would like a comfort level that the State is really doing something. City Administrator Ulrich stated that the point Councilmember Stigney is trying to make is that the State bid is not always the lowest price. He commented that sometimes deals can be obtained from the dealer or if it is late in the bidding year, products may be discounted, particularly electronic goods. He stated this is less common on durable goods such as mowers. He stated electronics prices can be volatile. City Administrator Ulrich stressed that he relies on Staff to conduct the proper research to determine if it is a good price. 8C. Resolution 6779 Approving the Purchase of a Replacement Mower for the Parks Division. Councilmember Stigney stated he had the same questions as on Item 8C. He stated the cost of the previous item was $9,080, while the cost of this item is $18,629. MOTION/SECOND: THOMAS/MARTY. To waive the reading and approve Resolution 6780 Approving the Purchase of a Utility Cart for the Parks Division. • Ayes - 4 Nays - 0 Motion carried.