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RESOLUTION AUTHORIZING AN INCREASE TO THE ANNUAL CONTRACT FOR ORIGINAL EQUIPMENT MANUFACTURER (OEM) PARTS, SUPPLIES AND LABOR FOR 2019 FROM ZIEGLER, INC. IN THE AMOUNT OF $100,000 FOR A TOTAL AMOUNT NOT TO EXCEED $295,000.
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CITY PROPOSAL:
RESOLVED, that the proper city officials are hereby authorized to increase the contract for the purchase of OEM parts, supplies and labor in 2019 from Ziegler, Inc. in the amount of $100,000 for a total amount not to exceed $295,000 payable as follows:
$143,250 660-015-5221 (Fleet Services, Public Administration, Equipment Repair Supplies)
$151,750 660-015-5404 (Fleet Services, Public Administration, Equipment/Machinery Repair & Mtc)
Statement of Purpose
STATEMENT OF PURPOSE: This resolution authorizes an increase to the annual purchase order for 2019 OEM parts, supplies, and labor to maintain City of Duluth Caterpillar construction equipment such as skid steers, excavators, loaders, motor graders and onsite generators.
Caterpillar OEM parts are used because they are reliable, ensure proper fit and compatibility, and keep us within warranty specifications. The contract covers 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.
The greater than anticipated spending has resulted primarily from a number of aging graders that required major repairs following the unusually heavy winter.