Staff recommends that City Council approve the purchase of a John Deere excavator from RDO Equipment Co. in the amount of $272,750.

Distribution/Collection uses a backhoe for most of the projects that are done.  The existing backhoe is past its useful life so was planned for replacement in FY26.  About two weeks ago, the transmission in the backhoe failed so it is inoperable now and the cost to repair is high compared to the additional life we would get from the equipment.  A larger excavator will be more useful for the work that is being done so the backhoe was planned to be replaced with an excavator.  Staff considered a John Deere excavator and a Caterpillar excavator and the John Deere was lower priced using the Sourcewell cooperative agreement.  

City Council may:

• Approve the purchase of a John Deere excavator from RDO Equipment; or,
• Not approve the purchase of the excavator.  If not approved, staff will need to rent equipment for projects as the backhoe we currently have is inoperable and it is too expensive to repair given it's age and condition.

The purchase of the excavator is through the Sourcewell cooperative agreement in the amount of $272,750.  The approved budget amount is $270,153 which is slightly less than the cost.  We anticipated trading in the backhoe, however, after the transmission failed, we are unable to trade it in for a significant value.  The difference in budgeted amount versus the cost will be made up from other equipment purchases.