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COUNCIL COMMUNICATION FORM <br /> PURCHASING & INTERNAL SERVICES MEMORANDUM <br /> #06 - 22 <br /> March 28, 2006 <br /> TO: Honorable Mayor Osborne and City Council <br /> FROM: Steve Gannan, City Manager <br /> Ron Neufeld, Financial Management Director <br /> Deborah M. Perry, Purchasing Supervisor���` <br /> SUBJECT: Bids for diesel powered endloaders <br /> SUMMARY RECOMMENDATION: Staff recommends awarding contract to Altorfer, Inc. <br /> for Alternate 5, which is a 5 year total cost bid of Altorfer, Inc. to furnish two (2) 2006 <br /> Caterpillar 924GZ endloaders for$213,300. The maximum cost of repairs will not exceed $2000 <br /> for 5 years or 5000 hours. Altorfer also guarantees to buy back the endloaders at the end of 5 <br /> years or 5000 hours for $110,000 thus, the total cost is $105,300. <br /> BACKGROUND: Replaces 2001 Komatsu endloaders that are on a buy back plan. Bid <br /> specifications requesting three bids were prepared due to the previous success the City has <br /> experienced on total cost bidding of equipment. <br /> Alternate 1 - Purchase endloaders outright. <br /> Alternate 2 - Guaranteed buy back at the end of 2 years or 2000 hours. <br /> Alternate 3 - 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 as well as evaluating <br /> other cost factors that affect the City. <br /> Low bidder for Alternate 3 has provided the City with the necessary bonding requirement. <br /> POTENTIAL OBJECTION: None <br /> INPUT FROM OTHER SOURCES: Endloaders were requested by the Street Division and the <br /> Forestry Division. Fleet Maintenance wrote the bid specifications. All recommend approval of <br /> bid. <br /> STAFF REFERENCE: Steve Swanson, Director of Engineering & Infrastructure, 424-2747. <br /> Steve will be at the council meeting to answer questions the council may have about this <br /> purchase. <br /> BUDGET: $213,300 from the Equipment Replacement Fund. � <br />