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�� � <br /> COUNCIL COMMUNICATION FORM <br /> PURCHASING & INTERNAL SERVICES MEMORANDUM <br /> #O 1 - 49 I <br /> July 23, 2001 �I <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 o�Q <br /> SUBJECT: Bids for diesel powered backhoe <br /> SUMMARY RECOMMENDATION: Staff recommends awarding contract to Martin <br /> Equipment for Alternate 3 which is a 5 year total cost bid of Martin Equipment, to furnish one <br /> (1) 2001 310G John Deere backhoe for $54,868. The maximum cost of repairs will not exceed <br /> $1000 for 5 years or 5000 hours. Martin Equipment also guarantees to buy back the backhoe at <br /> the end of 5 years or 5000 hours for$33,000, thus the total cost is $22,868. <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 Z - 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 requested by Street Division and Fleet <br /> Maintenance wrote bid specifications. All recommend approval of bid. <br /> STAFF REFERENCE: Phil Wilhelm, MSC Manager, 875-4820, Deborah M. Perry, Purchasing <br /> Supervisor, 424-2762. Beth Couter, Finance Director, will be at the council meeting to answer <br /> questions the council may have about this purchase. <br /> BUDGET: $54,868 from Equipment Replacement Fund. <br />