HomeMy WebLinkAboutResolution No. 2010-44BIDDER
BID PRICE
N.C. Machinery
$222,400
Construction Machinery Industrial, LLC
$196,595
Yukon Equipment Bid #1
75,000
Yukon Equipment Bid #2
$290,708
CITY OF KENAI
RESOLUTION NO. 2010 -44
A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AWARDING A
BID TO CONSTRUCTION MACHINERY INDUSTRIAL, LLC (CMI) FOR A WHEEL
LOADER FOR THE TOTAL AMOUNT OF $196,945.
WHEREAS, an existing 1972 wheel loader requires continuous repairs and has
reached the end of its useful life; and,
WHEREAS, the City solicited bids for a used (less than 1,500 hours) wheel loader;
and,
WHEREAS, the following bids were received on June 22, 2010:
and,
Suggested by: Administration
WHEREAS, the bid from N.C. Machinery and Bid #1 from Yukon Equipment were for
smaller machines and did not meet the minimum bid requirements; and,
WHEREAS, the cost of service publications for wheel loader from the apparent low
bidder cost an additional $350; and,
WHEREAS, the recommendation from the City Administration is to award the bid to
Construction Machinery Industrial, LLC; and,
WHEREAS, sufficient monies are available in the Equipment Replacement Fund.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI,
ALASKA, the bid for a wheel loader is awarded to Construction Machinery Industrial,
LLC for the total amount of $196,945.
PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 21st day of July,
2010.
ATTEST:
Approved by Finance:
PAT PORTER, MAYOR
aw/
KENAI, ALASKA
MEMO:
Village with a Past, a with a Future"
210 Fidalgo Avenue, Kenai, Alaska 99611 -7794
Telephone: 907- 283 -7535 FAX: 907- 283 -3014
TO: City Council
FROM: Rick Koch
DATE: July 13, 2010
SUBJECT: Purchase of a Wheel Loader
The purpose of this correspondence is to recommend Council approval of the purchase of a
wheel loader from Construction Machinery Industrial, LLC, for the amount of $196,945.
The purchase price includes the bid of $195,595 and an additional $350 for maintenance
publications.
On June 17, 2010 I received a notice that a wheel loader was being released for sale from an IRS
seizure. The machine was for sale at a price approximately $60,000 below the market value. I
viewed this as a rare opportunity to purchase a replacement loader with very low hours at an
outstanding price.
The City has two loaders (1972 1988) which are scheduled for replacement in FY2013 and
FY2018. In order to comply with the City's procurement requirements we issued an invitation
for bids for a used wheel loader meeting the City's requirements. Unfortunately the wheel
loader which was the IRS seizure sold prior to bids being received.
We did receive a very competitive bid for a wheel loader having extremely low hours (1,500 of
which 900 were at idle).
The City's 1972 Caterpillar 966C wheel loader receives very little use because of a chronic
steering problem and at 38 years old there is difficulty in locating replacement parts. Please see
Ogle memo to Koch dated July 14, 2010 attachment from Randy Parrish the shop foreman.
While replacement was not scheduled until FY2013 Administration recommends purchase of a
Volvo L120E loader for $196,945. This is approximately $100,000 less than a comparable new
machine.
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