Staying ahead of a price hike

To stay ahead of an upcoming price hike, the Hartley City Council authorized the purchase of a backhoe loader during a special meeting on Monday.

A quote from Murphy Tractor & Equipment in Sioux City for a John Deere 310SL backhoe loader was the lowest of three received. Superintendent of Public Works Jaron Benz recommended ordering the John Deere backhoe immediately, as the company will impose a 5 percent price increase for equipment not ordered by Aug. 1.

Items being ordered with the base unit are a grapple, front auxiliary hydraulics, coupler, pallet forks and a five-year/3,000-hour comprehensive warranty. The city will receive trade-in value of $36,500 for a 2009 John Deere backhoe. The dealer is including fenders valued at $725 at no cost. The net purchase price is $98,834.

"That price is locked in. I've verified that," Benz said.

A quote for a Case backhoe offered a lower trade-in price, while another for a Caterpillar model was "out of the equation" because of its high bid price.

Benz said that John Deere plans another 5 percent price hike on Nov. 1; however, the city will not have to pay the extra cost if the backhoe is not delivered by that date.

According to discussion, the city budgeted $110,000 for the purchase.

"I like to see us keep upon on equipment," said Council Member Jerry Olson. "Once you get behind it's hard to catch up."

Another item of business was to convey a vacated portion of South 1st Avenue East to Hartley Cold Services, LLC. The firm recently acquired the property that was previously occupied by American Natural Soy.

That portion of street was leased in 1986 to Beef Specialists of Iowa, which intended to expand its production facility to the west. The city granted a 99-year lease to the street right-of-way for $1 while retaining ownership due to a sewer main located there.

The resolution approved by the council states the city will retain any easements on the property for utility purposes.