2014-11-20 Mayoral Minute - Procurement of Second Hand Grader

                                                       MAYORAL MINUTE

I hereby give notice of my intention to move the following motion at the Ordinary Meeting on
Thursday, 20 November, 2014:


2        PROCUREMENT OF A SECOND HAND JOHN DEERE 670GP GRADER

         That Council authorises the Chief Executive Officer to enter into negotiations to procure a
         second hand grader up to the value of $250,000 (excluding GST) utilising available
         2014/15 budget funding within the Fleet – Plant Replacement program.



BACKGROUND

Council’s current plant replacement program includes the acquisition of a grader based on the
outcomes of recent condition assessment of all of Council’s plant and equipment.

Recent investigations have determined that there are a number of second hand graders available
in the market place due to the downturn in the mining industry. A new grader has been costed at
approximately $395,000 with quality second hand graders significantly cheaper at between
$250,000 and $300,000.

Council has located a suitable second hand grader that will be satisfactory for Council’s specific
operational requirements for a number of years into the future. This is a significant saving
compared to purchasing a new machine. This machine is currently on the market for $250.000
excluding GST.

Council’s grader operator and fleet supervisor have inspected the machine today, driven it and
deemed it suitable for Council’s requirements.

Details of the grader are as follows:

2011 John Deere 670GP Grader
Hrs: 2,000 (life 10,000 hours)
Warranty: 1yr factory warranty left
Privately owned
Maintained by dealership




                                                                             20/11/2014
..........................................................................   ......................................................................
Cr Noel Playford                                                              Date