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, � <br /> PURCHASING& INTERNAL SERVICES MEMORANDUM I <br />' #96 - 56 i <br /> September 25, 1996 <br /> TO: The Honorable Mayor and City Council Members <br /> FROM: James Williams, Jr., City Manager <br /> Beth Couter, Financial Management Dire or <br /> Deborah M. Perry, Purchasing Superviso� <br /> SUBJECT: STREET BACKHOE BID <br /> Attached you will find a bid summary for a backhoe to be used by the Street Division of the <br /> Public Works Department. This equipment will replace a 1994 John Deere backhoe. <br /> Bid specifications requesting three bids were prepared due to the previous success the City has <br /> experienced on total cost bidding for equipment. <br /> Alternate 1 - Purchase backhoe 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 /> It is the staff recommendation to accept Alternate 3 for the backhoe to be used by the Street <br /> Division which is the 5 year total cost bid of Martin Equipment to furnish one (1) 1996 John <br /> Deere 310D backhoe for $52,326. The lease cost for using a backhoe until the new unit can be <br /> manufactured and delivered is $2000. The maximum cost of repairs will not exceed $1500 for 5 <br /> years or 5000 hour period. Martin Equipment also guarantees to buy back the backhoe at the end <br /> of 5 years or 5000 hours for $31,000 thus, the total cost would be $24,826. <br />