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FC CASE AUTHORIZE VARIOUS 1999 CAPITAL PURCHASES By: Diana Lund, Finance Officer Background: Included in the Adopted 1999 General Fund Budget are the items shown on the attached schedule [Exhibit 1]. Also attached is a copy of capital items that were authorized as part of year-end 1998 budget transfer, but due to the close proximity with year end, time constraints did not allow the actual purchase of these capital items to occur. Minnesota bid laws require different levels of competitive bidding based on dollar amounts of the item to be purchased. The basic bidding guidelines are as follows: 1) 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] 2) 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] 3) for purchases estimated to be less than $10,000 --- open market or quotations [with at least two quotations] Capital Items - Catego _ry gl. - The items that fall under this category are as follows: Fire Department Included in the 1999 budget is $30,000 for the purchase of a two-ton truck to replace Unit #503, which is the fire department's engine #2. This current truck is a 1979 model which has an approximate trade in value of $15,000. The $30,000 that was budgeted takes into consideration this $15,000, or in other words, the actual value of a new truck is $45,000. The two-ton can be purchased through the Hennepin County Purchasing Cooperative. It is being requested that staff be allowed to order the two-ton through the County contract. Street Maintenance: Included in the 1998 year-end budget transfer was $132,500 for a motor grader, $40,000 for a one-ton truck, and $40,000 for a chassis to replace the existing chassis on truck #602. With the exception of the chassis, all of these vehicles can be purchased through the State of Minnesota Cooperative Purchasing Venture. Or the Hennepin County Purchasing Cooperative. Because the statutory bidding requirements have been met by the State, and County Cooperative it will not be necessary for the City to go through the sealed bid process.