A new wheel loader the Emporia City Commission bought Wednesday was about $15,000 more than expected but still well under budget.

The commission voted 3-0 to purchase the Case 621E wheel loader for $163,850 from Victor L. Phillips Co. in Topeka. Mayor Kevin Nelson and Commissioner Joel Phipps missed the meeting because they were out of town.

The loader will be used at the Transfer Station to load yard waste. It will also be equipped with solid rubber tires so it can also be used to move construction debris and used on the tipping floor, said Keith Senn, city sanitation supervisor.

The city had budgeted $190,000 in the Solid Waste Fund for this expense. Five bids were received, with the lowest being $148,496 from Victor L. Phillips. However, a representative of the company called the city Tuesday to report a problem with their bid.

The problem was the company forgot to add the cost of three rubber tires, which are very expensive, said Tim Frevert, city purchasing officer. The tires cost $7,677 each, which upped the bid to $171,527. However, Phillips said because of the error, they would only charge for two of the tires, bringing the price to $163,850.

“They are giving up their five percent profit margin and they have apologized for the inconvenience,” Frevert said.

The second lowest bid was $163,505 from Foley Tractor in Manhattan. That bid was for a Cat 924H, which is too small, Frevert said.

“The bid was for a smaller machine that wouldn’t be acceptable,” he said. “It wouldn’t have the weight or horsepower.”

The next lowest bid was $172,809 from Berry Tractor of Topeka.

Frevert said even with the goof, staff felt the Phillips bid was the best.

“I don’t think this was a bait and switch,” he said. “This would still be the best bid. Even if we re-bid it I think the prices would be worse because everyone knows the numbers.”

The new loader replaces a 2004 Bobcat 723 Telehandler. Phillips is providing $21,000 for a trade-in, the highest trade in of the five vendors. Delivery of the loader is expected to take 60 to 90 days.

Senn said the Telehandler was undersized and they had been borrowing the wheel loader from the Street Department. Staff had a chance to test drive the Case loader and found it to be satisfactory.

In other action Wednesday, the commission:

• Appointed Carol Marshall and Dustin Ochs to the Accessibility Advisory Committee. Marshall will fill in the remainder of Benjamin Crousore’s term while Ochs will serve a full three-year term. There are still two open positions on the committee.

• Set a 2 p.m. Aug. 30 deadline to receive bids for the Merchant Street curb and gutter repairs project.

http://www.emporiagazette.com/news/2011/aug/04/bid-error-leads-cost-increase-new-wheel-loader/