Staff recommends the City Council approve the purchase of one (1) 2025 Backhoe Loader from Tractor and Equipment Co. in the amount of $215,489.26.

The purchase of one (1) Backhoe Loader is included in the approved FY25 Equipment Replacement Plan (ERP) and the FY25 Street and Traffic budget.  The Backhoe Loader is a vital part of our emergency response as it can be dispatched immediately to remove debris in storm events with the loader bucket for debris on the streets or the backhoe bucket for debris down in ditches.  The backhoe is also used for stormwater repairs and large asphalt replacement projects.  Staff is recommending procurement of the equipment using the cooperative purchasing agreement (Sourcewell), as the pricing is less than what we expected to get through competitive bid pricing.  The unit being replaced will be sold at auction.

City Council may:

• Approve the purchase of the backhoe loader; or,
• Not Approve the purchase.  If not approved the loader will likely see extensive repair costs, and downtime as the loader has reached its useful life.  Extended downtime will result in diminished customer service levels citizens have come to expect.

The backhoe loader was budgeted in FY25 using street maintenance funds.  The amount budgeted for the backhoe loader was $212,000.00.  The shortfall will come from selling the trade at an auction.