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HomeMy WebLinkAbout~Master - Tractor Loader Backhoe RESOLUTION NO. 06-487 RESOLUTION APPROVING RETAINAGE OF TRACTOR LOADER BACKHOE AND CANCELLATION OF GUARANTEED BUY-BACK PERFORMANCE BOND FOR THE EQUIPMENT FOR THE CITY OF AMES WHEREAS,in November 2005,bids were solicited for a replacement tractor loader backhoe with the contract being awarded to Mid-Land Equipment of Ankeny,Iowa, in the amount of$67,570 with a guaranteed buy-back of$61,000 after one year; and, WHEREAS,Mid-Land Equipment also was required to provide a performance bond to cover the buy-back guarantee,which is currently being held by the City Clerk's Office; and, WHEREAS,to fulfill the original agreement and replace the backhoe now after one year,bids were again solicited for a new backhoe with the result of all the bids being rejected due to non- conformance to specifications; and, WHEREAS, at the same time bids were being analyzed, an evaluation of the one-year-old machine and its utilization was performed,and it was determined that the backhoe has been used much less than expected, and that it would be to the City's advantage to keep the 2005 piece of machinery rather than replace it; and, WHEREAS,accomplishing this required negotiating a change to the contract with Mid-Land Equipment that would remove the buy-back guarantee and allow the City to maintain free and clear ownership of the equipment; and, WHEREAS, negotiations with Mid-Land Equipment ended with the company agreeing to waive its buy-back requirement and allowing the city to retain free and clear ownership of the backhoe. NOW,THEREFORE,BE IT RESOLVED by the City Council of the City of Ames,Iowa, that the cancellation of the guaranteed buy-back performance bond in the amount of$61,000 from Mid- Land Equipment of Ankeny, Iowa, for the 2005 Case 580SM Tractor Loader Backhoe is hereby approved with the stipulation that Mid-Land Equipment provides written confirmation that indicates the absence of any liens on the equipment. ADOPTED THIS 12th day of December, 2006. Diane R. Voss, City Clerk Ann H. Campbell, Mayor Introduced by: Mahayni Seconded by: Goodman Voting aye: Doll, Goodman, Larson, Mahayni, Popken, Rice Voting nay: None Absent: None Resolution declared adopted and signed by the Mayor this 12th day of December, 2006.