Agenda - Council - 01/27/1998 - Laserfiche WebLink

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FC CASE AUTHORIZE VARIOUS 1998 CAPITAL PURCHASES By: Jessie Hart, Finance Officer Background: Included in ihe Adopted 1998 General Fund Budget are the items shown on the attached schedule. Minnesota bid laws require different levels of competitive bidding based on dollar amounts of fflc item to be purchased. The basic bidding guidelines are as follows: 1) rr 2) 3) for purchases estimated to be $25,000 or more --- sealed bids solicited by public notice in the official newspaper [although these requirements can be met by utilizing cooperative purchasing ventures such as state or county purchasing cooperatives] for purchases estimated to be $10,000 to $25,000 --- sealed bids are recommended or direct negotiations, with three quotations whenever possible [no less than two] for purchases estimated to be less than $10,000 --- open market or quotations [with at least two quotations] Capital Item~- Category #1 - The items that fall under this category are as follows: Police DepamUent: Included in the 1998 budget is $106,775 for the purchase of three squads [two replacements - one new] and the!ipurehase of a 4-wheel drive type vehmle. All of these vehicles can be purchased through the 8tatel of Minnesota Cooperative Purchasing Venture from Superior Ford at a total cost of approX~mately $90,000. Because the statutory bidding requirements have been met by the State Cooperative it will not be necessary for the City to go through the sealed bid process. There will al~ be costs associated with the set-up [minor equipment and labor to do switch overs fi.om old squJtds-and installation of new] which is estimated to be approximately $8,000 to $10,000 for a!l four vehicles. The estimated total to purchase and set-up the police vehicles will be approximaiely $100,000, which is within the adopted budget amount. Street MaintenanCe Department: Included in the 1998 budget is $35,000 for the purchase of a truck cab and chassis for the existing wate~ truck and $80,000 for the purchase of a 2½ - ton truck with plow, wing and sander as a replacement for unit #610 which is a 1984 International. In past years, these types of heavy equipment ha~ been purchased through the Hennepin County Purchasing Cooperative but due to changes at FOrd, their contract does not meet our requirements, therefore we will be pursuing i'