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HomeMy WebLinkAbout10 Purchase Backhoe-LoaderAgenda Item # 10 CONSENT To: Board of Directors From: Brian Wright Date: June 03, 2015 Subject: Consideration of the Purchase of a Replacement Backhoe-Loader 1. WHY THIS MATTER IS BEFORE THE BOARD Board approval is required for procurements in excess of $15,000 and declare Unit 374 surplus and dispose of in accordance with District policy. 2. HISTORY The backhoe loader is an essential piece of equipment in the maintenance and repair of the District's water distribution system. The Water Division fleet currently includes two John Deer 410 backhoe loaders, equipping the District with the ability to mobilize multiple crews in response to water distribution system repairs at any given time. One of the existing John Deer 410 backhoe loaders, Unit 374, has been in service for more than 17 years and is approaching the end of its usefull life. Historically, District staff has projected utility of heavy equipment to be approximately 15 years, at which time the asset is evaluated for continued use or replacement. District staff has evaluated Unit 374 as an asset in need of replacement. 3. NEW INFORMATION On May 8, 2015, the District publicly advertised specifications and requests for the purchase of a new backhoe loader. On May 26, 21051 a bid opening was held and the District received one responsive bid from Pape Machinery, Inc. in the amount of $113,890. The District has reviewed all submitted documents and has determined the bid from Pape Machinery, Inc. to be responsive of all District specifications. 4. FISCAL IMPACT Funds for the purchase of the backhoe loader Reserve Fund and funds from the sale of Unit Department Vehicle Replacement Fund. are available in the Water Vehicle 374 will be transferred to the Water 5. RECOMMENDATION Authorize the General Manager to sign a contract for the purchase of a new 2015 John Deer 410L Backhoe to Pape Machinery, Inc. in the amount of $113,890 and declare Unit 374 as surplus. Michael D. Holley General Manager /Water Utility Manager