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� <br /> COUNCIL COMMUNICATION FORM <br /> PURCHASING & INTERNAL SERVICES MEMORANDUM <br /> #07-21 <br /> May 9, 2007 <br /> TO: Honorable Mayor Osborne and City Council <br /> FROM: Steve Garm City Manager <br /> Ron Neuf , inancial Management Director <br /> Deborah M. erry, Purchasing Supervisor� <br /> SUBJECT: Bids for Endloader <br /> SUMMARY RECOMMENDATION: Staff recommends awarding contract to Altorfer, Inc. <br /> for Alternate 2, which is a 5 year total cost bid, to furnish one (1) 2007 950H Caterpillar diesel <br /> powered endloader for $167,580. The maximum cost of repairs will not exceed $2000 for 5 <br /> years or 5000 hours. Altorfer also guarantees to buy back the endloader at the end of 5 years or <br /> 5000 hours for $97,000, thus the total cost is $72,580. <br /> BACKGROUND: This equipment replaces a 2001 John Deere endloader that was on a buy <br /> back plan previously. Bid specifications requesting two bids were prepared due to the previous <br /> success the City has experienced on total cost bidding of equipment. <br /> Alternate 1 —Purchase endloader 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 endloaders. <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 endloader was requested by the Street Division. <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 any questions the council may have about this <br /> purchase. <br /> BUDGET: $167,580 from Equipment Replacement Fund. <br />