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.� • , , <br /> COUNCIL COMMUNICATION FORM <br /> PURCHASING & INTERNAL SERVICES MEMORANDUM <br /> #07-63 <br /> October 8, 2007 <br /> TO: Honorable Mayor Osborne and City Council <br /> FROM: Steve G , City Manager /� <br /> Ron Neufe d Financial Management Director / ' <br /> Deborah M. erry, Purchasing SupervisorC� � <br /> SUBJECT: Bids for diesel powered motor grader <br /> SUMMARY RECOMMENDATION: Staff recommends awarding contract to Altorfer, <br /> Inc., to furnish one (1) 2007 Caterpillar 12M diesel powered motor grader for $147,930, which <br /> is a 5 year total cost. The maximum cost of repairs will not exceed $1500 for 5 years or 5000 <br /> hours. Altorfer also guarantees to buy back the motor grader at the end of 5 years or 5000 hours <br /> for $110,000, if the Engineering and Infrastructure Department so chooses, which would reduce <br /> the total cost to $39,430. <br /> BACKGROUND: This equipment replaces a 2005 John Deere 670D motor grader on a buy <br /> back plan. Bid specifications requesting two bids were prepared due to the previous success the <br /> City has experienced on total cost bidding of equipment. <br /> Alternate 1 —Purchase motor grader outright <br /> Alternate 2 —Guaranteed buy back at the end of 5 years or 5000 hours. <br /> The bids were evaluated using the average annual cost of the motor grader. <br /> The low bidder for Alternate 2 has provided the City with the necessary bonding requirement. ' <br /> POTENTIAL OBJECTION: None I� <br /> INPUT FROM OTHER SOURCES: The motor rader was re uested b the Street <br /> g q Y <br /> Department. Fleet Maintenance wrote the bid specifications. All recommend approval of bid. <br /> STAFF REFERENCE: Richard Marley, Director of Engineering and Infrastructure, 424-2747. <br /> Richard will be at the council meeting to answer questions the council may have about this <br /> purchase. <br /> BUDGET: $147,930 from the Equipment Replacement Fund. <br />