Staff recommends the City Council award the purchase of a new wheel loader to Tractor & Equipment Co., in the amount of $261,739.00.

The wheel loader is needed for the new landfill drop-off facility. This piece of equipment will move the materials around at the drop off area outside the new building. This loader will load all of the construction and demolition (C&D) materials, brush, refrigerators, etc. into the appropriate place for its end use. The loader was in last year's budget but the purchase was postponed to coincide with the drop-off facility completion date.  The bid was advertised on November 13th and November 20th in the Yellowstone County News and on the City's website. Bids were opened on December 1st and two bids were received. Tractor & Equipment Co. submitted the lowest, responsible bid.

City Council may:

• Approve the award of the purchase of a new wheel loader to Tractor & Equipment Co., in the amount of $261,739.00 or;
• Disapprove the award of the purchase and reject all bids. If the wheel loader is not approved, staff will not be able to operate the new drop-off facility as intended. 

The following bids were received:

	RDO Equipment	Tractor & Equipment Co.
Base Bid	$249,000.00	$268,739.00
Trade Allowance #244	($21,000.00)	($7,000.00)
Total	$228,000.00 (did not meet specifications in 26 places)	$261,739.00

The budgeted amount in last year's budget is for a new wheel loader is $277,170.00.   A budget amendment will be required to add the FY 20 budget amount to the FY 21 budget.