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HomeMy WebLinkAbout2017-10-23 17-377 ORDERTitle, Order CITY COUNCIL ACTION Council Meeting Date: 10/23/2017 Item No: 17-377 Responsible Dept: Public Works Requested Action: Order 10/23/2017 17-377 Map/Lot: N/A Authorizing Purchase of Front End Loader from Chadwick BaRoss in the Amount of $165,527 and the Use of $40,650 in Equipment Reserve Funds for a Portion of the Cost Summary On September 20, 2017, the City received three bids under the life -cycle method of procurement ranging from $75,527 to $127,000 to purchase a front end loader. The life -cycle method of procurement requires vendors to guarantee a price the equipment can be sold back to the vendor at the end of a five year term at the City's discretion. The recommendation is to award the bid to Chadwick Ba Ross in the amount of $165,527, net of the trade-in values. At the end of five years, the vendor has guaranteed to pay the equipment back for $90,000 if the City requests. In addition, this order would authorize the use of $40,650 in equipment reserve funds. This action is due to an error in the FY18 budget process. Committee Action Committee: Finance Committee Meeting Date: 10/16/2017 Action: Recommend for passage For: 5 Against: 0 Staff Comments & Approvals City Manager Introduced for: Consent z8v City Solicitor Finance Director CITY OF BANGOR ORDER Date: 10/23/2017 Item No: 17-377 Assigned to Councilor: Sprague 10/23/2017 17-377 Authorizing Purchase of Front End Loader from Chadwick BaRoss in the Amount of $165,527 and the Use of $40,650 in Equipment Reserve Funds for a Portion of the Cost Be it Ordered by the City Council of the City of Bangor that, the bid for a front end loader is hereby awarded to Chadwick BaRoss in the amount of $165,527 and that $40,650 of equipment reserve funds be utilized for this purpose. City of Bangor Bid Tabulation Bid: Front End Loader Bid No. P18 - 020 Bid Opening: September 20, 2017 Beauregard Chadwick-BaRossTB Equipment Equipment, Inc. Bangor, MEHermon, MEBangor, ME ItemDescriptionPricePricePrice Front End Loader183,527.00197,250.00192,000.00 1 Plus guaranteed max. total cost of repairs for 5 2 yrs/4,500 hours (equal to fulfillment bond)- - - Subtotal (line 1 & 2):$183,527.00$197,250.00$192,000.00 Less guaranteed buy back amount at end of 5 390,000.00 85,000.00 45,000.00 yrs/4,500 hours 418,000.0010,000.0020,000.00 Less Trade in price for a 2002 John Deere 624H Total “Life Cycle” Bid Amount: $75,527.00$102,250.00$127,000.00 IN CITY COUNCIL OCTOBER 23, 2017 CO 17-377 PASSED LL _) CITY CLERK