05-0425R


RESOLUTION AWARDING CONTRACT TO ZIEGLER, INC., FOR RENTAL OF 16 MOTOR GRADERS IN THE AMOUNT OF $365,270.80.

BY COUNCILOR STOVER:

     RESOLVED, that Ziegler, Inc., be and hereby is awarded a contract for rental of 16 Caterpillar Model 143H motor graders for six months each for a total of 84 months during the year 2005/2006 winter season for the street maintenance division in accordance with specifications on its low specification bid of $365,220.80, terms net 30, FOB destination, payable out of General Fund 0100, Department/Agency 500, Organization 1920, Object 5415.


STATEMENT OF PURPOSE: This resolution will authorize the rental of 16 motor graders from Ziegler, Inc., for $365,270.80 to be paid from General Fund 0100. The motor graders are required to remove snow from the streets of Duluth during the year 2005/2006 winter season. The rental period is for six months per season (October 15 through April 14). Ziegler was the lowest of the two companies who responded. The amount authorized by the resolution includes 6.5 percent sales tax. This is the first year of a potential five year contract. Bid No. 05-0251


Tabulation of bids received June 13,2005

Ziegler, Inc., Duluth, MN -- 16 ea 143H @ $3,572.68/mo x 6 mo = $342,977.28 + 6-1/2% tax = $365,270.80

Nortrax Equipment, Duluth, MN -- 16 ea 772CH @ $5,080/mo x 6 mo = $451,200 + 6-1/2% tax = $480,528

 

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