05-09-1977 Council Minutes - Laserfiche WebLink

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a REGiJ�LAR MEETING OF THE ORONO COUNCIL MAY 9, 1977 Page 30 � � Dick Benson, City Administrator; presented the BID AWARD following memo from John Gerhardson, Public FRONT-END LOADER �orks Supervisor, dated May 4, 1977, concerning he Bid Award for the Front-end Loader: ♦ , • SUB,T�.'CT: BID AWARD - FRONT END IAADER AND ATTACh�'IENTS • � On April 22, 1977 the City of Orono oper,ed bids f'or one articu- 1a�ed front end 1Qader saith quick coupler, plow and wing, • _, Tne City of Orono w-ro�e the specifica�ions and contract with • the �otal cost procedures in mind. Briefly eaplaining that pro- � cedure, it means that the equipment company must assure us that �ney will guarantee that the maintenance �,rill cost us X amount � of' dollars wi�hin a five year period and anytn.ing over that amount t�ey will have to pay. The i'ive year buy back portion � means that should the City decide to trade the machine in iive years, �he cempany guaran�ees at lezst X amount oi' dollars for • tnat machine. - � T'nis pr•ocedure is very corr�on in otner municipali�ies and it is � �he only procedure used by Hennepin CounLy wnen purchasing he2vy equipment. • With the cost of eouiprr,ent today, this is a very good insurance � policy. Wnat iae are actually telling the equipment compans is � If you feel you have a good machine, back it up. " � Approximately three years ago, the City of Mound purchased a front end loader using the total cost purchase method. They � received only _two bids; - one was Ford and the otner was Cater- pillar. Ford was the low �id; but they purchased the Caterpillar. r According to Mr. Bob Miriar, there was a difl'erence of approxim- ately $6,000.00. They are very satisfied with their machine. • � 0�' the three bids received, only one bid met the specii'ications. � I have inspected and operated the machines that were bid. • The question was raised wheti�er or not the specifications were wri�ten S'or one particular machine. i � Ten copies of our specifications were sent out to ten different companies at �heir request. � T'ne following is a list of companies who received ol�r s eci�'ica- � tions, but did not bid, and their reasons ior not bidding: � � . Borchert-Ingersoll has the Tyrea loader. 2�Sr. Jack • . N�ouist told me that their machine met our specifications but � they did not bid because their two-yard machine is no longer in � (Continued) � . i