The Parks, Recreation and Public Lands Department (PRPL) uses a Compact Wheel Loader for many tasks, such as loading and hauling soils, gravel and rock to excavations and to assist with maintenance and construction tasks.  The Department's current wheel loader is a 1979 International that has over 8,000 hours of use and is worn out. The current unit is difficult to start and requires excessive maintenance to keep it running. Consequently, it is not being used causing projects requiring a wheel load to not be completed. The replacement of this unit was reviewed and approved by the Equipment Replacement Program committee and the funding approved through a FY 2012 budget amendment  approved by Council earlier this year.

Specifications for a new compact wheel loader compatible with use in Park areas were developed, which included trading in the old wheel loader. The call for sealed bids was published in the Billings Times on March 1 and 8, 2012. The bid documents were also posted on the City's website.  The bid opening was on March 13, 2012. The following four bids were received and opened: 

Company	Base Bid	Trade-In Allowance	Net Bid
Tri-State Truck & Equipment, Inc.	$96,862	$4,000	$92,862
RDO Equipment Co.	$91,975	$10,000	$81,975
Titan Machinery	$81,682	$8,545	$73,137
Tractor & Equipment Co.	$86,258	$13,650	$72,608

Tractor and Equipment Co. provided the lowest bid when the Trade-in Allowance was subtracted from the Base Bid. The Caterpillar compact wheel loader meets the specification requirements.  Delivery is anticipated to be within 90 days of bid award.

City Council may:
1. Approve the bid and purchase the compact wheel loader from Tractor and Equipment Company; or
2. Reject all bids and provide guidance to staff on the desired next steps.

The Wheel Loader is being purchased through the Equipment Replacement Program.  The purchase was approved and funding was allocated for the new Wheel Loader through the Equipment Replacement Program. The cost falls within the budgeted amounts that were allocated for the purchase of Parks and Recreation Department equipment.

Staff recommends that the City Council approve the bid from Tractor and Equipment Company for a 2012 Caterpillar Model 908H Compact Wheel Loader in the amount of $72,608 including trade-in of the 1979 International Wheel Loader.