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RESOLUTION AUTHORIZING AN INCREASE TO PURCHASE ORDER 2017-00000024 FOR ORIGINAL EQUIPMENT MANUFACTURER (OEM) PARTS, SUPPLIES AND LABOR FROM ZIEGLER, INC. IN THE AMOUNT OF $16,000 FOR A NEW TOTAL NOT TO EXCEED $111,000.
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CITY PROPOSAL:
RESOLVED, that the proper city officials are hereby authorized to increase an annual purchase order for the purchase of OEM parts, supplies and labor in 2017 from Ziegler, Inc. in the amount of $16,000 for a new total not to exceed $111,000 payable as follows:
$66,500 660-015-5211 (Fleet Services, Public Administration, Equipment Repair Supplies)
$44,500 660-015-5404 (Fleet Services, Public Administration, Equipment/Machinery Repair & Mtc)
Statement of Purpose
STATEMENT OF PURPOSE: This resolution authorizes an increase to an annual purchase order for 2017 for the purchase of OEM parts and labor to maintain City of Duluth Caterpillar construction equipment such as skid steers, excavators, loaders, motor graders and onsite generators.
The purchase order is in place to cover both routine maintenance and major repair costs on Caterpillar equipment; and provides a discount on parts as well as on-site repair services to reduce down time on equipment. This year there were more major repairs than expected, so an increase is required to cover repairs through the remainder of 2017. A separate purchase order to Titan Machinery will be reduced by the same amount to offset the increase to Ziegler.