05-02-1983 CC MIN - Laserfiche WebLink

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City Council Minutes May 2, 1983 Page Three from Culbertson Equipment out of Park Rapids. The City Administrator indicated that it was recommended -that the City Council authorize the purchase of a new 1983 Caterpillar 930 Loader from Ziegler Inc., based on the recommendations submitted in a memorandum to the Mayor and City Council from the Street Super- intendent, dated April 29, 1983. Councilmember Schuldt questioned the recommendation of a new front end loader versus purchase of a used one, which was discussed in committee meeting. Mr. Phil Hals indicated that at the time of the discussion of the purchase of a front end loader, it was suggested that a new front end loader would cost approx- imately $80,000, and therefore it was assumed that a used loader would be a better purchase for the City of Elk River. Discussion was carried on regarding the price quotations for new equipment versus used equipment. Councilmember Duitsman questioned the difference in the new Terex bid versus the new Cat bid. Mr. Phil Hals indicated that the recommendation for the new Cat was based on the Caterpillar guarantee that any time up to three years they will buy back the Cat, whereby Terex has a one year guarantee, and it would cost $1,500 for a maintenance guarantee for each year thereafter. Mr. Hals indicated that Caterpillar and Ziegler Inc., have a proven track record as they have be:en around for 50 years and that they also have an excellent support facility. Mr. Hals indicated that the Terex is manufactured by a German Holding Company, .and at the present time there is only one other Terex machine in the State of Minnesota. I Discussion was carried on regarding the co~parison of the Terex and the Caterpillar with regard to the warranty, u'Sage of gas, resale value and main- tenance program. Mayor Hinkle indicated that he felt the Caterpillar would hold its resale value, and therefore was in favor of the purchase of the new caterpillar from Ziegler Inc. COUNCILMEMBER DUITSMAN MOVED TO PURCHASE THE TEREX FRONT END LOADER FROM BORCHERT AND INGERSOLL, AND TO INCLUDE THE PURCHASE OF A TWO-YEAR WARRANTY. COUNCILMEMBER GUNKEL SECONDED THE MOTION. THE MOTION FAILED 2-3. COUNCILMEMBER SCHULDT, COUNCILMEMBER ENGSTROM AND MAYOR HINKLE OPPOSED. Further discussion was carried on regarding the type of engine in the Terex, the warranty provided by the Cat and the difference in price. Councilmember Schuldt indicated that he liked the warranty provided by the Caterpillar but was having some problem with the difference in the price of the two machines. Mr. Hals indicated that the City could have bid the front end loader with a buy back in the specifications, but felt that the City would purchase a front end loader for a long term use. Councilmember Engstrom indicated that he had some reservations regarding the difference in price but was comfortable with the American made diesel engine in the Caterpillar, and the support facilities that Ziegler provides. Mayor Hinkle indicated that he felt that equipmept purchased is no better than the dealer, and that a good dealer and a good warranty is very important in the decision of the purchase of heavy equipment. COUNCILMEMBER SCHULDT MOVED TO AUTHORIZE THE PURCHASE OF THE 1983 CATERPILLAR 930 FROM ZIEGLER'S INC. IN THE AMOUNT OF $58,373. COUNCILMEMBER ENGSTROM SECONDED THE MOTION. THE MOTION PASSED 3-2. COUNCILMEMBER DUITSMAN AND COUNCILMEMBER GUNKEL OPPOSED.