Title
Consider a resolution authorizing the City Manager to issue a purchase order to John Deere Construction Retail Sales for three (3) backhoe loaders.
Body
These three backhoes are replacements for current ones and this purchase is on the authorized purchased list approved by the Council earlier in the year. One is for Drainage, it will be replacing asset 060234. It has 1714 hours on it and is 13 years old. We have spent $49,466 dollars on this unit in the past 10 years. Which is about half the cost of a new unit.
The second one is for the Utility Department, It is replacing 972509. This unit has 3452 hours on it and is 22 years old. We have spent $33,877 dollars on this unit for about a third of the cost of a new one.
The third unit is also for the Utility Department. It show 950 hours but the hour meter has been replaced and we do know the exact hours. It is also 22 years old and we have spent $31,244 dollars on this unit in the past 10 year also about a third the cost of a new one.
As these units get old they become harder to find parts for. We have found that once a unit get to be over ten years of age the parts become more difficult to find. All of these units are over ten years old and the cost of repairs is starting to increase.
Cost: $296,642.57
Source of Funds: Utility Fund and Drainage Fund