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COUNCIL COMMU1vICATION FORM <br /> PURCHASING& INTERNAL SERVICES MEMORANDUM <br /> #O1 - 67 <br /> September 10, 2001 <br /> TO: Honorable Mayor Howley and City Council <br /> FROM: Steve Garman, City Manager <br /> Beth Couter, Financial Management Director <br /> Deborah M. Perry, Purchasing Supervisor <br /> SUBJECT: Backhoe bids <br /> SUMMARY RECOMMENDATION: Staff recommends awarding contract to Martin <br /> Equipment of Illinois, Inc. for Alternate 3 which is a 5 year total cost bid of Martin Equipment to <br /> furnish (1) 2001 41 OG John Deere backhoe for $73,133. The maacimum cost of repairs will not <br /> exceed $1000 for 5 yeazs or 5000 hours. Martin Equipment also guarantees to buyback the <br /> backhoe at the end of 5 years or 5000 hours for$40,000, thus the total cost is $34,133. <br /> BACKGROUND: Replaces 1996 John Deere backhoe. Bid specifications requesting three bids <br /> were prepared due to the previous success the City has experienced on total cost bidding for <br /> equipment. <br /> Alternate 1 - Purchase backhoe outright <br /> Alternate 2 - Guaranteed buyback at end of 2 years or 2000 hours <br /> Alternate 3 - Guaranteed buyback at end of 5 years or 5000 hours <br /> Low bidder has provided City with necessary bonding requirements. <br /> POTENTIAL OBJECTION: None. <br /> INPUT FROM OTHER SOURCES: Backhoe was requested by Water Distribution and Fleet <br /> Maintenance wrote bid specifications. Both recommend approval of bid. <br /> STAFF REFERENCE: Phil Wilhelm, MSC Manager 875-4820, John Smith, Assistant City <br /> Manager for Public Services 424-2833. John Smith will be at the council meeting to answer <br /> questions the council may have about this purchase. <br /> BUDGET: $73,133 from Equipment Replacement Fund. <br />