Laserfiche WebLink
� <br /> COUNCIL COMMUNICATION FORM <br /> PURCHASiNG & INTERNAL SERVICES MEMORANDUM <br /> #09-22 <br /> May 7, 2009 <br /> TO: Honorable Mayor McElroy and City Council <br /> FROM: Ryan P. McCrady, City Manager � <br /> Ron Neufeld, Financial Management Director <br /> Deborah M. Perry, Purchasing Supervisord�-� <br /> SUBJECT: Bids for backhoes <br /> SUMMARY RECOMMENDATION: Staff recommends awarding contract to Martin <br /> Equipment to furnish two (2) 2009 John Deere 310 SJ TMC diesel powered backhoes using the <br /> total cost bid for 5 years submitted under Alternate #2. <br /> BACKGROUND: Bid specifications requesting two bids were prepared due to the previous <br /> success the City experienced on total cost bidding of equipment. Bidders were asked to submit <br /> both a base bid for an outright purchase of the backhoes and also a bid which included a 5 years <br /> total cost buyback with a cap on repairs. Staff evaluated the bids and determined the bid <br /> alternate for the 5 year total cost of the backhoes is the lowest and best responsive and <br /> responsible bid for the City. � . <br /> Under Alternate#2, the backhoes will cost$109,000 after trade in. The maximum cost of repairs <br /> for 5 years or 3250 hours is $0. The low bidder, Martin Equipment also guarantees to buy back <br /> the backhoes at the end of 5 years or 3250 hours for $70,000, if the City so chooses, which <br /> would reduce the cost to $39,000. <br /> The backhoes will be used by Water Services. The backhoes will replace two (2) 2002 John <br /> Deere 410G backhoes currently in service. The old backhoes will be traded to the low bidder <br /> when the new units are delivered. <br /> The low bidder for Alternate 2 has provided the City with the necessary bonding requirements. <br /> POTENTIAL OBJECTION: None <br />