Blind River council approved purchasing a new backhoe at its virtual council meeting Monday evening.
The $152,437 John Deere backhoe was the second bid from three bids submitted in the town tender on the equipment and was recommended by two public works staff who viewed the backhoes at different dealerships in Sudbury. As with all equipment purchases, they are part of the town’s fleet management plan.
The need for a new backhoe was identified for 2022. The backhoe was identified in the five-year forecast to be replaced in 2023.
“The rationale for the early tender was the current supply issues that the world is facing post-COVID,” CAO / Clerk Katie Scott said in a report to council.
“In discussions with the dealership for the John Deere, they are currently expecting a delivery of the same model tendered. If this model sells, there is no guarantee as to when another unit can be expected (possibly, early in 2023, but- as stated – there is no guarantee). Therefore, to ensure that the town has the equipment required for winter maintenance for this upcoming season, staff are recommending purchasing the unit that is currently in transit to the dealership,” Scott added in her report.
The 2023 capital budget included $140,000 for the backhoe as part of the five-year forecast. The resolution approved by Council at a March meeting allocated the savings from the sweeper purchase at $60,478.72 to the purchase the backhoe. The surplus from the sale of the sweeper, as approved by Council, the repayment to the equipment reserve through the 2023 budget will be $76,795.52.
The additional funds required $76,795.52 can be taken from the Equipment Reserve in 2022. The 2023 budget would then include a repayment to the equipment reserve fund. This will result in no impact to the 2022 budget and a reduction in the amount required in the 2023 budget for fleet.
The purchase was unanimously approved.