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AGENDA ITEM 9A <br />STAFF ORIGINATOR: David Ahrens, Public Works Director <br />DATE: November 21, 1995 <br />TOPIC: Accept Bids and Authorize Purchase of Backhoe <br />BACKGROUND: <br />The City's maintenance department over the past few years has been renting a <br />backhoe during the summer months to assist in various maintenance efforts <br />throughout the City. The use of the backhoe has increased to the point where it <br />is used year-round. Rather than continuing with the rental of a backhoe, the <br />Public Works Department advertised for bids for the purchase of a backhoe. <br />The bids were opened on October 23, 1995, with the following results: <br />Midwest Machinery, Inc. (John Deere) $47,293.46 <br />St. Joseph Equipment Co. (Case) $64,190.80 <br />The option to rent -to -own was also considered. Over a five year period, it would <br />cost the City an additional $7,000 over the low bid amount noted above. <br />Maintenance costs are the same between the rent -to -own option and the <br />purchase option. Due to this extra cost, the rent -to -own option is not <br />recommended. <br />The backhoe is proposed to be funded according to the following schedule: <br />Street Department (33%) <br />Utilities Fund (33%) <br />Surface Water Management (33%) <br />TOTAL <br />OPTIONS: <br />1. Return to staff for further review. <br />2. Adopt Resolution Number 95-151 accepting th <br />purchase of a backhoe. <br />RECOMMENDATION: <br />Staff recommends option 2. <br />$ 15,764.49 <br />$ 15,764.49 <br />$ 15, 764.48 <br />$47,293.46 <br />e bids and authorizing the <br />