City of Lawrence

Finance Department

MEMORANDUM

DATE:	August 20, 2008
TO:	David Corliss
	City Manager
FROM:	Alan D. Landis
	Purchasing Specialist

ONE (1) CEMETERY BACKHOE – PARKS AND RECREATION – Bid#08070

Parks and Recreation requested bids for a new backhoe for the cemetery.  The existing backhoe, unit 598, a 1999 model, is used daily, has high hours and is having mechanical problems.  Bids were sent to eight vendors as well as being placed on Demand Star; however, only three responses were received, resulting in only one bid.

Parks and Recreation is also requesting to trade in their present backhoe.  We have done research to find its approximate value.  No units are listed for sale on E-bay or Gov Deals.

Machinery Trader lists three comparable units at retail locations across the country. Two are 1997 models, one 1999 all priced between $29,900 and $35,000.00 All have 700-1000 hours of use less than our machine.  Equipment watch shows only three machines sold in the year one 1998 and two 1999. Auction prices ranged from $12,750.00 to $19,636.00 no usage information was available.

We are also requesting to add a ride control option.  The ride control is a safety feature to keep the backhoe from bouncing while driving on the streets going between jobs.

The solicitation of bids for this purchase was approved by the City Commission on July 15, 2008. The purchase will be made using the Memorial Park Cemetery perpetual care fund.

VENDOR	TOTAL  BID
Sellers Equipment
Backhoe	$  66,863.00
Trade, Unit #598	-14,580.00
Cost less trade	52,283.00
Option, Ride control	1,120.00
Total cost	$53,403.00
Victor L Phillips	No Bid
Murphy Tractor	No Bid

Recommendation Action:

Award bid for one (1) backhoe with ride control to the Parks and Recreation Department to Sellers Equipment for $53,403.00, (Cemetery Perpetual Care Fund)

cc:	Cynthia Boecker	Ernie Shaw	Steve Stewart
	Dianne Stoddard	Mark Hecker
	Frank Reeb	Mitch Young
	Bobbie Walthall	Jonathan Douglass