Title
Resolution to Approve the Purchase of a Wheeled Loader from JDE Equipment Company ($181,300.00)
Memorandum
The attached resolution authorizes the purchase of a 2007 John Deere 624J with a three yard capacity clam bucket and a five yard roll out bucket for the total amount of $181,300.00 from JDE Equipment Company, New Hudson, Michigan. This unit will replace a 1998 loader currently being used by the Compost Center.
The 1998 loader has been in service for 9 years and has 14,000 hours of use. Over the last two years the repair and maintenance cost for this unit have increased 240 percent going from an average of $7,638.00 per year to $18,356.00 per year. These costs do not include replacing any of the major components like the engine, transmission or axles, which have a normal life expectancy in this type of operation of about 10,000 hours. Given the 14,000 hours of use this machine has a significant chance of a major component failure in the next twelve months.
When the 1998 loader was purchased the Compost Center was processing between 8,000 and 10,000 tons of compost yearly, today that has increased to about 25,000 tons. The new loader being requested is a larger model and is sized to handle the current and future increases in compost operation. The increase in volume at the facility has generated a need to load the semi trailers being utilized during large commercial sales. The addition of the five-yard roll out bucket will increase the dumping height of the loader to allow it to fill these semi trailers with finished compost.
In accordance with City of Ann Arbor purchasing policies we solicited competitive bids, which are, summarized below. JDE Equipment Company was the sole responsive bidder.
Loader Bucket Total
JDE Equipment Company $166,700.00 $14,600.00 $181,300.00
Wolverine Tractor and Equipment $166,200.00* $14,987.00 $181,187.00*
Michigan Cat $153,792.00* $13,753.00 $167,545.00...
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