CITY OF MOLALLA

               117 N. Molalla Avenue

               PO Box 248

               Molalla, OR 97038

      Staff Report

Agenda Category: Consent Agenda

Agenda Date: August 24th, 2022      From: Andy Peters, PW Div Manager

             Approved by: Dan Huff, City Manager

SUBJECT: 2022 Budgeted Backhoe Purchase

FISCAL IMPACT: $117,083.87

RECOMMENDATION/RECOMMEND MOTION: Approve the Purchase of a 2022 John Deere 410L Tractor Loader Backhoe through the Sourcewell Cooperative Purchasing Agency.

BACKGROUND: The existing backhoe is a Cat 436 purchased in 1998. This machine can be considered the “swiss army knife” of the public works fleet, used not only for excavation, but also mowing, toeing, grading, demolition, park landscaping, forklifting and paving. This replacement has been timed so that the existing machine, though aged, still affords the best possible salvage value to help offset the cost of the new one. The MSRP of the new machine is $230,571. The machine is available to us through the cooperative purchasing agency Sourcewell at a 44% discount for $129,119.76. Freight, warranty, and maintenance plans, and a set of forks bring the sale price to $145,438.27. Papé has agreed to accept the old backhoe with a trade-in value of $29,000, bringing the final budget impact to $117,083.87.