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6.1.C. - Page 2 <br />The cost of a used backhoe may be lower than a new one. However, the usage <br />history of used off road, construction equipment is very difficult to determine and <br />possibility of incurring more than normal repair expenses during the equipment <br />useful life. The repair cost and equipment may undermine any savings that might <br />be gained through the purchase of a used backhoe. <br />• Direct staff to write a Request for Proposal and open a competitive bids process. <br />A competitive bids process may sound financially benefit to the City if the City is <br />purchasing a single product with vast quantity or a unique product that is not <br />easily available for purchase. However, the State of California, Department of <br />General Services went through a competitive bidding process and negotiated the <br />best possible price for governmental agencies before awarding the CMAS <br />contract. Therefore, this option is not be the best alternative for the City. <br />FISCAL IMPACT <br />Funds for the purchase of this replacement backhoe were approved by City Council in <br />the FY 2011/12 Equipment Replacement Fund Budget in the amount of $98,000.00. <br />The remaining balance of $6,027.17 will initially be financed from retained earnings in <br />the Equipment Replacement Fund. This amount will be subsequently recovered from <br />the operating budget of user department through vehicle replacement charges in future <br />years. <br />TERENCE KYAW <br />FLEET MANAGER <br />- �W4q�+ Z4��a4� <br />MARILYN HARANG <br />DIRECTOR <br />ROBERT B. BELL <br />CITY MANAGER <br />ATTACHMENTS <br />1) Bid Document <br />2) WAS Contract <br />