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COUNCIL COMMUNICATION FORM <br /> PURCHASING & INTERNAL SERVICES MEMORANDUM <br /> #OS - 26 <br /> July 21, 2005 <br /> TO: Honorable Mayor Osborne and City Council <br /> FROM: Steve Garman, City Manager <br /> Ron Neufeld, Financial Management Director �� <br /> Deborah M. Perry, Purchasing Supervisor�,� <br /> SUBJEeT: Bids for diesel powered motor grader <br /> SUMMARY RECOMMENDATION: Staff recommends awarding contract to Martin <br /> Equipment for Alternate 2 which is a 2 year total cost bid of Martin Equipment, to furnish one <br /> (1) 2005 John Deere 670D motor grader for $129,300. The maximum cost of repairs will not <br /> exceed $0 for 2 years or 2000 hours. Martin Equipment also guarantees to buy back the motor <br /> grader at the end of 2 years or 2000 hours for $119,300 thus, the total cost is $10,000. <br /> BACKGROUND: Replaces a 2000 Caterpillar 120H motor grader on a buy back plan. Bid I <br /> specifications requesting three bids were prepared du� to the previous success the City has � <br /> experienced on total cost bidding of equipment. il <br /> Alternate 1 - Purchase motor grader outright <br /> Alternate 2 - Guaranteed buy back at end of 2 years or 2000 hours <br /> Alternate 3 - Guaranteed buy back at end of 5 years or 5000 hours <br /> Low bidder has provided the City with the necessary bonding requirements. <br /> POTENTIAL OBJECTION: None <br /> INPUT FROM OTHER SOURCES: Motor Grader was requested by the Street Division. <br /> Fleet Maintenance wrote the bid s ecifications. All recommend approval of bid. <br /> P <br /> STAFF REFERENCE: Steve Swanson, Director of Engineering & Infrastructure 424-27�7, <br /> Tom Serfass, Fleet Supervisor 875-�718. Tom will be at the council meeting to answer <br /> questions the council may have about this purchase. <br /> BUDGET: $129,300 from Equipment Replacement Fund. <br />