From
Jim Cummings
Title
Two-year annual lease agreements with Caterpillar Financial Services Corporation to lease an 836K Compactor and a D8T-T4 Dozer for the landfill, in the amount of $647,423 for this fiscal year, $647,423.07 for FY 2017 and $765,002 balloon payment for FY 2018 with a three-year total of $2,059,848.14 through a national, interlocal agreement with Buyboard
Presenter
Patricia Redfearn, Ph.D., Solid Waste Manager
Recommended Action
Approve
Analysis
Compactors and dozers utilized at the City's landfill run approximately 3,400 hours annually. The landfill's daily operation is governed by State and Federal regulations necessary to ensure environmental compliance. The facility's site operating plan specifies a minimum amount of equipment required to meet these regulatory requirements, which includes fire suppression. Thus, it is important that this equipment be available and functional.
The existing compactor and dozer units are ready for replacement and approved in the City's budget for fiscal year FY 2015/2016. Historically, the City has purchased the equipment; however, growth in customers and additional services (brush pickup) have outpaced the funding capacity in Solid Waste-Landfill budget. The lease acquisition is beneficial to the landfill operations while allowing additional funding for the equipment needs for brush removal crews.
A cost/benefit analysis was presented to the Finance and Government Committee on January 5, 2016. Most beneficial to our landfill operations is to smooth and stabilize funding levels for the costlier equipment items, i.e., dozers and compactors. In addition, procurement with lease options carry warranty coverage for travel, maintenance and repairs. Our existing equipment is beyond the warranty period and we incur premium service costs per call. This year, to date, the City estimates that the repair costs for this equipment is approximately $160,000. The committee supports this finance method...
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