Bids were received by the Distribution and Collection Division of the Public Works Department on September 29, 2015, to purchase a new, 2016 single engine combination sewer jet/vacuum cleaner. This unit is used to clean sanitary sewer lines and lift stations. The purchase is included in the Public Works Department's FY 2016 budget for replacement of this vehicle and is also included in the approved Equipment Replacement Plan (ERP). The existing truck will not be traded in on the new unit and will be transferred to the wastewater treatment plant.  The City received two (2) bids and Titan Machinery, Inc. is the low bidder ($359,828.48).

City Council may:

• Approve purchasing the 2016 sewer jet/vacuum cleaner from Titan Machinery, Inc. in the amount of $359,828.48 which includes Alternates 1 & 2, and full 5-year engine and transmission warranty.
• Disapprove all bids and not award the purchase of the 2016 sewer jet/vacuum cleaner. If the bid is not awarded the Public Works Department will be required to continue to use the existing unit that is at or near the end of its useful life.  This will eventually result in higher maintenance costs and reduced equipment reliability.

The bid was advertised on September 17 & 24, 2015. There is sufficient funding in the FY2016 budget for the Wastewater Fund to cover the award. Two bids were received on September 29, 2015.  Note that since the existing unit is not traded in the, the trade-in allowance is not added into the award amount.  The bids are as follows:
 

Vendor	Base Bid	Additive Alt 1	Additive Alt 2	5-Year Warranty	Trade-in Allowance (as noted the unit will not be traded)	Base Bid with Alternates #1 & 2 + 5-year Warranty (does not include trade-in allowance number)
Kois Brothers Equipment 1812 Monad Road Billings, MT  59102	358,000.00	4,950.00	6,850.00	2,400.00 2,400.00	30,000.00	374,600.00
Titan Machinery, Inc. 1728 Old Hardin Road Billings, MT  59101	343,655.48	8,733.00	4344.00	546.00 2,550.00	15,275.00	359,828.48

Staff recommends that Council award the bid for a 2016 single engine combination sewer jet/vacuum cleaner to Titan Machinery, Inc. in the amount of $359,828.48 which includes a Base Bid plus Alternates 1 & 2, and five-year transmission and engine warranty and NO trade-in.