Agenda Packets - 1988/10/03 - Laserfiche WebLink

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.fit: ,,, I 1 Council FROM: Public Works Foreman Ulrich t4tEi September 29, 1988 '. SUBJECT: PUBLIC WORKS LOADER AND SNOW EQUIPMENT :IDS Bids were received and opened for the purchase of a new loader equipped with September 28, 1988. I have reviewed a bids: Ziegler, Inc. Caterpillar 936E Carlson Lake State Equipment John Daere 624E budgeted $115,000.00 a plow and wing on nd evaluated the following $ 99,086.00 $ 95,900.00 Case Power and Equipment No Bid Carlson Equipment Company No Bid I would like to briefly explain our method of bidding this piece of equipment. As mentioned at an earliet Council meeting, the specifications for the loader included the option of a total cost bid. Total cost bidding is essentially the total owning and operating cost of a piece of equipment. This includes the purchase price plus the deduction for trade-in; guaranteed maximum repair cost that the agency will incur over a five-year or six thousand -hour period; guaranteed minimum value, which in our specifications was an option from years 1 through 5, and scheduled maintenance costs which include greasing engine and transmission service. I have attached the bid forms from these two vendors. After review, you will find that the bids are basically self- e:•planatory. When you reach item 7, follow the directions there, this is how the final figure is arrived at for the total cost bid over a 5-year period. You will see after reviewing the bids that Ziegler bid all of the items requested. Carlson Lake State Equipment exercised their option not to bid total cost. Our reasoning for adding this option to our specifications is that if we were to receive a "lemon" from any particular vendor where our repair costs have already exceeded our guaranteed maximum repair w'thin the time slotted, and we see these costb escalating, we would have the option to sell any time between the first and fifth year at the guaranteed prices. It also assists us in budgeting for equipment repairs in the future. For at least the first five years we don't have to look into a crystal ball and estimate what could possibly break down or 91) wiUng.