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COUNCIL COMMUNICATION FORM <br /> PURCHASING& INTERNAL SERVICES MEMORANDUM <br /> #04 - 36 <br /> September 13, 2004 <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 /> SUBJECT: Bids for diesel powered endloaders <br /> SUMMARY RECOMMENDATION: Staff recommends awarding contract to Roland <br /> Machinery Co. for Alternate 3 which is a 5 year total cost bid of Roland Machinery Co., to <br /> furnish two (2) 2005 Komatsu WA200PT-5 endloaders for $176,992. The maximum cost of <br /> repairs will not exceed $0 for 5 years or 5000 hours. Roland Machinery Co. also guarantees to <br /> buy back the endloaders at the end of the 5 years or 5000 hours for $93,000 thus, the total cost is <br /> $83,992. <br /> BACKGROUND: Replaces 1999 John Deere 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 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: Endloaders were requested by the Water Services <br /> Division and the Street Division. Fleet Mauitenance wrote the bid specifications. All recommend <br /> approval of bid. <br /> STAFF REFERENCE: Phil Wilhelm, MSC Manager 875-4820, Deborah M. Perry, Purchasing <br /> Supervisor 424-2762. Dick Borders will be at the council meeting to answer questions the <br /> council may have about this purchase. <br /> BUDGET: $176,992 from Equipment Replacement fund. <br />