Staff recommends the City Council approve the purchase of a 4x4 backhoe/loader tractor with attachments from RDO Equipment Co. in the amount of $251,186.13 less $17,000 trade for a net amount of $234,186.13.

The purchase of the backhoe/loader is included in the approved FY23 Equipment Replacement Plan and FY23 Water and Wastewater budget. This backhoe/loader will replace a unit that is 23 years old and is needed for performing water distribution and sewer collection system repairs on a timely basis. Staff is recommending we procure the equipment using the cooperative purchasing agreement (Sourcewell), as the pricing is similar to competitive bid pricing.
  
Sourcewell is a relatively new tool to the City for use in procurement.  Historically, the City has been allowed to use state contracts to procure items if it was beneficial to the City.  The purchasing policy has been updated to allow cooperative agreements beyond just the state contracts.  Staff evaluates the procurement options to determine which option is the most beneficial for the City.  In this instance, using Sourcewell is more beneficial to the City than bidding the backhoe.

City Council may:

• Approve purchasing the backhoe/loader through Sourcewell; or,
• Not Approve the purchase.  If the purchase is not approved, staff will need to bid the backhoe/loader, resulting in paying a higher cost and an 18-24 month delay before receiving the new backhoe/loader.

The backhoe/loader is budgeted in FY23 using Water and Wastewater funds. There is sufficient budget for this purchase.