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.� , , <br /> COUNCIL COMMUNICATION FORM <br /> PURCHASING& INTERNAL SERVICES MEMORANDUM <br /> #07-22 <br /> May 9, 2007 <br /> TO: Honorable Mayor Osborne and City Council <br /> FROM: Steve Ga ity Manager <br /> Ron Neufel F' ancial Management Director <br /> Deborah . P y, Purchasing Supervisor��G <br /> 1 <br /> SUBJECT: Bids for diesel powered extendahoe 4x4 backhoe <br /> SUMMARY RECOMMENDATION: Staff recommends awarding contract to Martin <br /> Equipment of Illinois, Inc. for alternate 2, which is a 5 year total cost bid, to furnish one (1) 2007 <br /> 410J John Deere diesel powered extendahoe 4 x 4 backhoe for $80,220. Martin further agrees to <br /> trade in the existing 2001 John Deere model backhoe for $35,825. The maximum cost of repairs <br /> will not exceed $1,500 for 5 years or 5000 hours. Martin also guarantees to buy bacic the <br /> backhoe at the end of 5 years or 5000 hours for $44,000, thus the total cost is $1,895. <br /> BACKGROUND: This equipment replaces a 2001 John Deere backhoe currently in service. <br /> Bid specifications requesting two bids were prepared due to the previous success the City has <br /> experienced on total cost bidding of equipment. <br /> Alternate 1 —Purchase backhoe outright <br /> Alternate 2—Guaranteed buy back at end of 5 years or 5000 hours. <br /> The bids were evaluated using the average annual cost of the backhoes. <br /> The low bidder for Alternate 2 has provided the City with the necessary bonding requirement. <br /> POTENTIAL OBJECTION: None <br /> INPUT FROM OTHER SOURCES: The backhoe was requested by the Water Department. <br /> Fleet Maintenance wrote the bid specifications. All recommend approval of bid. <br /> STAFF REFERENCE: Ricic Marley, Director of Engineering and Infrastructure, 424-2747. <br /> Rick will be at the council meeting to answer questions the council may have about this <br /> purchase. <br /> BUDGET: $80,220 <br /> $3( 5,g25�less trade-in <br /> $44,395 from the Equipment Replacement Fund. <br />