City of Lawrence

Finance Department

 

MEMORANDUM

 

DATE:

December 1, 2011

 

 

TO:

David L. Corliss

 

City Manager

 

 

FROM:

Alan D. Landis

 

Purchasing Specialist

 

LEASE FOUR BACKHOES BID #B1153

 

Public Works has been leasing backhoes for the past 6 years.  The department has saved a considerable amount of money on repairs doing so.  Public Works and Utilities Departments requested bids to lease four backhoes for a period of three years, 700 hours per year.

 

Three Public Works backhoes 3 year lease is up in April of 2012.  The Utilities backhoe which is 10 years old needs major repairs and is at the end of its useful service life.  We plan to trade that machine in as well as trade in the three Public Works lease machines

 

The low bid from Kan Equipment did not meet specifications; the rear boom configuration for the extend-a-boom is different than required.  Therefore, it is our recommendation to lease the back-hoes from the low bidder, Murphy Tractor that met the specifications. The funding is as follows;

 

The Utility machine will be funded from account #501-7-7610-6005 budgeted from 2011 funds.

 

The Street (1) machine will be funded from the Gas Tax fund # 214-3-3800-6005 budgeted in the 2012 budget.

 

The Storm Water (2) machines will be funded from the Storm Water fund # 505-9-3910-6005 budgeted in the 2012 budget.

 

Presently the backhoes on Gov Deals are selling for $19,000 or less. 

 

 

VENDOR

TOTAL

Kan Equip

$ 34,100.00, ea for Public Works

 

$ 15,000.00, trade for Utilities

 

$ 19,100.00, cost for Utilities

Murphy Tractor

$ 40,650.00, ea for Public Works

 

$ 12,000.00, trade for Utilities

 

$ 28,650.00, cost for Utilities

Foley Equipment

$ 42,833.58, ea for Public Works

 

$ 8,685.00, trade for Utilities

 

$ 34,148.00, cost for Utilities

Foley Equipment, Alternate

$ 55,292.48, ea for Public Works

 

$ 8,685.00, trade for Utilities

 

$ 46,607.48, cost for Utilities

Victor L Phillips

$ 48,803.50, ea for Public Works

 

$ 13,000.00, trade for Utilities

 

$ 35,803.00, cost for Utilities

 

Recommendation Action: 

Award lease of four (4) backhoes for three years for the Public Works Department and the Utilities Department to Murphy Tractor Co. for $150,600.00 (Public Works/Gas tax & Storm Water Fund, 2012 budget) / Utilities/Distribution System, 2011 budget)

 

 cc:

Cynthia Wagner

Charles Soules

Dave Wagner

 

Diane Stoddard

Mark Thiel

Mike Lawless

 

Jonathan Douglass

Steve Stewart

Bob Brower

 

Bobbie Walthall

Tom Orzulak

Diane Trybom