Staff recommends the City Council approve the purchase of one (1) 2026 John Deere 710P backhoe from RDO Equipment Co. in the amount of $240,000.

The FY27 Equipment Replacement Plan includes the purchase of one backhoe to support the City's water and wastewater maintenance and emergency response operations. Staff obtained two quotations through the Sourcewell cooperative purchasing program, with the recommended John Deere backhoe submitting the lowest responsive quote while meeting the City's operational requirements. Sufficient funding is available in the FY27 Water and Sewer budget, and staff recommends approval of the purchase.

The purchase of one (1) backhoe is included in the approved FY27 Equipment Replacement Plan (ERP) and the FY27 Water and Wastewater budget. Backhoes are an essential piece of equipment used by water and wastewater crews to respond to water main breaks, sewer line failures, and other maintenance and emergency repair activities. Their versatility allows crews to excavate, load materials, backfill trenches, and restore work sites efficiently, helping to minimize service disruptions and maintain a high level of customer service.

Staff recommends procuring the equipment through the Sourcewell cooperative purchasing program. Sourcewell competitively solicits and awards contracts on behalf of participating public agencies, allowing the City to obtain equipment at pricing that is comparable to, and often lower than, traditional competitive bidding while streamlining the procurement process. To ensure the City received the best overall value, staff obtained two quotations through the Sourcewell contract. The recommended unit submitted the lowest responsive quote while meeting the City's operational requirements, providing the best value to the City.

The backhoe was included in the FY27 Equipment Replacement Plan and budgeted in the FY27 Water and Sewer budget in the amount of $284,354. The purchase price is below the budgeted amount, resulting in project savings. The remaining budgeted funds will be available to help offset cost increases or funding shortfalls for other equipment purchases included in the FY27 Equipment Replacement Plan.

City Council may:

• Approve purchasing one (1) 2026 John Deere backhoe from RDO Equipment Co through Sourcwell; or,
• Not approve the purchase.  If the purchase is not approved, the existing backhoe will continue to experience increasing maintenance costs and downtime as it has reached the end of its useful life. Extended equipment outages may reduce the City's ability to provide timely repairs and could negatively impact service levels.