City of Oak Creek

Common Council Report

Meeting Date:  January 15, 2008

Item No.:        

Recommendation:  That the Common Council approves the recommendation of the Street Superintendent to purchase one (1) 2008, current model tractor complete with rear and side mowers for roadside cutting from the second low bidder, Serwe Implement Company, in the amount of $67,286.00, minus $17,300.00, for a total of $49,986.00.

Background:  The Street Department advertised for bids for a current model tractor. The tractor will be set up for cutting roadside ditches which means it will have a rear and side mower. We received three (3) bids. The lowest bidder, Mid State Equipment was rejected due to the fact that the mowers did not meet minimum bid requirements. Therefore the second lowest bid from Serwe Implement was selected. The Street Department currently has three (3) tractors that will be traded in. The trade in value for all of the tractors came to $17,300.00 dollars. This amount will be deducted from the total of the bid and bring down the price of the tractor to $49,986.00. The tractors that are being traded have been very problematic with many front pumps and other costly repairs. The traded are as follows 1-1995 Massey Ferguson 253 with 5873 hours, 1-1996 Massey Ferguson 253 with 3820 hours and 1-1990 John Deere 2355 with 6205 hours. This new tractor will have more power and also new designs.

Vendor	Amount
Mid State Equipment	$63,928.00 less trade $16,000.00 = $47,928.00
Serwe Implement	$67,286.00 less trade $17,300.00 = $49,986.00
Schmidt Implement	$69,810.00 less trade $19,000.00 = $50,810.00

Fiscal Impact:  $75,000.00 was budgeted in the 2008 CEP fund for the purchase of this tractor. The awarded bid was $49,986.00 which produced a savings of $25,014.00. This money will be returned to the CEP fund.

Prepared by: Michael Lampe Street Superintendent	Respectfully submitted, Patrick DeGrave City Administrator
Fiscal Review by: Beverly A. Buretta, CMC City Clerk