DISCLAIMER

 

06-0516R


RESOLUTION AWARDING A FIVE-YEAR CONTRACT TO NORTRAX EQUIPMENT COMPANY TO LEASE FOUR JOHN DEERE 7720 MOTOR GRADERS IN AMOUNT OF $54,408 PER YEAR FOR A TOTAL FIVE-YEAR AMOUNT OF $289,722.60.

BY COUNCILOR STOVER:

     RESOLVED, that Nortrax Equipment Company be and hereby is awarded a contract for furnishing and delivering four John Deere 7720 motor graders to the street maintenance division for lease during the six month winter season each year in accordance with specifications on its low bid of $54,408 per year (including the trade of two Caterpillar 163Hs in the amount of $210,000) for a total five-year amount of $289,722.60, including tax of $17,682.60, terms net 30, FOB destination, payable out of General Fund 100, Department/Agency 500, Organization 1920-2550, Object 5415.


STATEMENT OF PURPOSE:  This resolution will authorize the lease of four John Deere 7720 motor graders from Nortrax Equipment Company for $54,408 per year (over the five-year contract period) for a sum total of $389,722.60 including tax (net of trade-ins), payable out of the general fund.


The first contract period begins with the November 1, 2006, through April 30, 2007, season and spans a five year period ending April 30, 2012.


Lease of motor graders will increase efficiency and save taxpayer dollars by eliminating city-owned graders that require tax dollar maintenance and speeding up snow removal. Nortrax Equipment Company was the lowest of two bids received of the companies who responded.


Bid No. 06-0432

Tabulation of bids received June 29, 2006

 

Less trade-ins

Net-5 year with tax

Ziegler Cat, Duluth, Minnesota

$570,888.90

$248,000.00

$322,888.90

Nortrax Equipment Company, Duluth, Minnesota

$482,040.00

$210,000.00

$289,722.60