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FC CASE <br /> <br />AUTHORIZE VARIOUS 1998 CAPITAL PURCHASES <br /> By: Jessie Hart, Finance Officer <br /> <br />Background: <br /> <br />Included in the Adopted 1998 General Fund Budget are the items shown on the attached <br />schedule. Minnesota bid laws require different levels of competitive bidding based on dollar <br />amounts of the item to be purchased. The basic bidding guidelines are as follows: <br /> <br />1) <br /> <br />for purchases estimated to be $25,000 or more --- sealed bids solicited by <br />public notice in the official newspaper [although these requirements can be <br />met by utilizing cooperative purchasing ventures such as state or county <br />purchasing cooperatives] <br /> <br />2) <br /> <br />for purchases estimated to be $10,000 to $25,000 --- sealed bids are <br />recommended or direct negotiations, with three quotations whenever <br />possible [no less than two] <br /> <br />3) for purchases estimated to be less than $10,000 --- open market or <br /> quotations [with at least two quotations] <br /> <br />Capital Items - Category. #1 - The items that fall under this category are as follows: <br /> <br />Police Department: <br /> <br />Included in the 1998 budget is $106,775 for the purchase of three squads [two replacements - one <br />new] and the purchase of a 4-wheel drive type vehicle. All of these vehicles can be purchased <br />through the State of Minnesota Cooperative Purchasing Venture from Superior Ford at a total <br />cost of approximately $90,000. Because the statutory bidding requirements have been met by the <br />State Cooperative it will not be necessary for the City to go through the sealed bid process. <br /> <br />There will also be costs associated with the set-up [minor equipment and labor to do switch overs <br />from old squads and installation of new] which is estimated to be approximately $8,000 to <br />$10,000 for all four vehicles. The estimated total to purchase and set-up the police vehicles will <br />be approximately $100,000, which is within the adopted budget amount. <br /> <br />Street Maintenance Department: <br /> <br />Included in the 1998 budget is $35,000 for the purchase of a truck cab and chassis for the <br />existing water truck and $80,000 for the purchase of a 2V2 - ton truck with plow, wing and sander <br />as a replacement for unit #610 which is a 1984 International. In past years, these types of heavy <br />equipment had been purchased through the Hennepin County Purchasing Cooperative but due to <br />changes at Ford, their contract does not meet our requirements, therefore we will be pursuing <br /> <br /> <br />