City of Lawrence

Finance Department

MEMORANDUM

DATE:	March 16, 2006
TO:	David Corliss
	Interim City Manager
FROM:	Alan D. Landis
	Purchasing Specialist

BACKHOE PURCHASE

The Public Works Department requests to purchase a three year old John Deere backhoe that we have been leasing.  When we originally leased it we signed an agreement with the option to buy the equipment for $28,715.89 at the end of our lease period.  This agreement was approved by the City Commission on March 4, 2003.  The backhoe will be used as backup equipment for the two backhoes we leased in February of this year, approved by the City Commission on February 7, 2006.  At that time we traded in our backup unit for which we received $21,000.00.  This purchase was budgeted in the 2006 budgeting process.

Recommendation Action: 

Approve purchase of one (1) backhoe from Murphy Tractor Co. in the amount of $28,715.89.  (Public Works/Street Maintenance)

cc:	Dave Corliss	Charles Soules
	Frank Reeb	Tammy Bennett
	Bobbie Walthall	Steve Stewart
	Diane Trybom	Tom Orzulak