The approved 2018 Capital Budget for PW Utility includes $135,000 for the purchase of a Caterpillar Backhoe.  The Backhoe is used almost daily for Water Distribution's installations and repair work.

The current machine has been analyzed by the Fleet Unit and determined to be in need of replacement. A separate ordinance will be created to surplus the equipment and disposal of it through an auction.

We are purchasing this piece of equipment through the National Joint Powers Alliance (NJPA) a Joint Purchasing Cooperative. The NJPA is a municipal contracting agency for over 40,000 members throughout the nation with competitively awarded contract purchasing solutions through industry leading vendors.  The Village has been a member of the NJPA for several years and has made several purchases through this program.  

NJPA has awarded Caterpillar the contract for backhoe loaders.  The Caterpillar Model 440 STD Backhoe Loader price is $146,982.  Although the final price is above budget, the overall reported 2018 Capital Budget for utility equipment can accommodate the overage.

RECOMMENDATION

It is recommended that the Village Board approve a contract with Altorfer CAT of Elmhurst, Illinois in an amount not-to-exceed $146,982 for the purchase of a 2019 Caterpillar Model 440 STD Backhoe Loader and authorize Staff to execute the necessary documents.