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Business Items  Item #: 10.d.
Regular Council Meeting
Wheeled Loader Equipment Replacement - Hales
Information
Recommendation
That a new Case 621E Loader be purchased from Hammer Equipment for a net purchase price of $148,386 (i.e. less trade in of existing John Deere 410C loader/backhoe) as approved in the 2009-2011 Fiscal Plan.
Purpose
To replace equipment in accordance with an established lifecycle plan to ensure costs of ownership and productivity of equipment is managed to maximize benefit to the City of Spruce Grove.
Background
The 2009 fleet replacement capital plan sets out the purchase of a new wheeled loader to replace a John Deere 410C Loader Backhoe that has reached the end of its functional life. This is the scheduled replacement for this piece of equipment.
The Request for Quotations closed on June 30, 2009 with the following four bids received:
Vendor / Model Bid Price
Tender Evaluation
Rating:
5 high – 1 low
Brandt Tractor
$159,400
3.4
Finning
$224,354
2.2
Hammer Equipment
$148,386
4.4
Cervus Equipment
$169,055
3.0
Approved 2009 Budget
$200,000.00
Council approval is sought for this purchase as the value exceeds administrative approval limits set out in the City's purchasing policy (Policy 10,000). The recommended quotation price of $148,386 is 26% below the budget estimate due to current market conditions. Variance to budget will be returned to the fleet capital replacement reserve.
Options
Council may choose to award to the lowest bidder or no bidders at this time.
Impacts/Consultation
Implementation/Communication
Core Strategies
Managing Change
Planning for Growth
Fiscal Impact
Financial Considerations:
The recommended quotation price of $148,386 is 26% below the approved budget amount. The unit cost was lower than 2008 estimates due to current market conditions, variance to budget will be returned to the fleet capital replacement reserve.
Attachments
No file(s) attached.