In September 2015, after a competitive bid process, the Village Board awarded a three-year contract to Altorfer Industries of Elmhurst, Illinois and LoVerde Construction of Wheeling, Illinois for Track Mounted Hydraulic Equipment. Patton Rental was recently purchased by Altorfer Industries of Elmhurst, IL. The original bid was awarded to two separate contractors based upon lowest unit price. The contracts will expire in December of 2019. Excavator rental contracts are an important tool for Public Works to utilize various specialized pieces of tracked excavators, without the liability and cost of ownership.

This would be the third of three possible extensions. The contractors have offered to extend the contracts for 12 months without an increase in price. The term of the extension would begin January 2020 and conclude December 2020. Staff has been pleased with the equipment operators, equipment quality, and availability from these two contractors, and recommends the extensions.

If these contracts are re-bid, the chances for unit price increases are high, as these rates are primarily labor and rental based, and hourly rates have increased by several percent over the last three years.

Funds are available in Account Number 505-7201-561-21.36 (Water and Sewer).

RECOMMENDATION

It is recommended that the Village Board award a one-year contract extension to Altorfer Industries of Elmhurst, Illinois, per original contract terms. It is also recommended that the Village Board award a one-year contract extension to LoVerde Construction of Wheeling, Illinois, per original contract terms. It is further recommended to authorize Staff to execute the necessary documents.