HomeMy WebLinkAbout~Master - Change in guaranteed buy-back for Wheel Loader RESOLUTION NO. 10-558
RESOLUTION APPROVING CHANGE IN GUARANTEED BUY-BACK
AMOUNT FOR WHEEL LOADER USED AT POWER PLANT COAL YARD
FOR THE CITY OF AMES,IOWA
WHEREAS, on October 25, 2005, the Council awarded a contract to Murphy Tractor to
supply a John Deere Wheel Loader for $125,250, and as part of this award, the City also accepted
the buy-back offer of$85,000 after five years and 5,000 hours of operation; and,
WHEREAS,the loader was delivered to the Power Plant's coal yard,and it was operated for
five years,but was run for 7,625 hours; and,
WHEREAS,this is 2,625 hours more than anticipated when the Loader specifications were
developed, and it was sent out for bid; and,
WHEREAS,coal yard operations have changed to manage the increased coal inventory after
this contract was awarded, requiring more Load hours than in previous years; and,
WHEREAS, Murphy Tractor has proposed to reduce the buy-back amount due the City by
$39,375 (from $85,000 to $45,625); and,
WHEREAS,purchasing policy requires Council authorization on change orders of 20%on
a contract, and this Change Order of $39,375 represents a 31.4% change, as well as a 46.3%
reduction on the buy-back.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ames, Iowa,
that the Change Order to reduce the guaranteed buy-back on the Wheel Loader for the Power Plant
Coal Yard from $85,000 to $45,625 is hereby approved.
ADOPTED THIS 14th day of December, 2010.
C�?. UjAj_& A. .4 ' �L�v
Diane R. Voss, City Clerk Ann H. Campbell, Mayor
Introduced by: Davis
Seconded by: Goodman
Voting aye: Davis, Goodman, Larson, Orazem
Voting nay: None Absent: Mahayni, Wacha
Resolution declared adopted and signed by the Mayor this 14t'day of December, 2010.