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| ARF- 4010 |
Regular Agenda Item 3. C.
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| Regular BOS Meeting |
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| Information |
| Request/Subject |
| Approval to purchase a 2016 930M wheel loader with coupler, bucket and forks. |
| Background Information |
It is the intent of the Public Works Division to purchase a new 930M wheel loader and will trade-in five pieces of equipment:
1) 1985 966C loader that was purchased in 1985 at a cost of $110,979.67 with a total of 3,800 operator hours at the time of purchase. This loader (Equipment No. I-22, serial number 42J10356) is thirty-one years old and currently has a total of 7,280 operator hours. It was used in material pits for loading trucks.
2) 1987 950B loader that was purchased in 1991 at a cost of $119,504 with a total of 7,625 operator hours at the time of purchase. This loader (Equipment No. I-18, serial number 65R2911) is twenty-nine years old and currently has a total of 13,900 operator hours. It was used in material pits for loading trucks but is too large to use for street clean-up during storm events.
3) 1974 TD15C dozer that was purchased in 1987 at a cost of $18,300 with a total of 8,621 operator hours at the time of purchase. This dozer (Equipment No. T-16, serial number 424002U0-02094) is forty-two years old and currently has a total of 10,421 operator hours. It was used to plow snow at the north end of FR 512 and is worn out.
4) 1999 D8R dozer that was purchased in 1999 at a cost of $333,000.00 with a total of 660 operator hours at the time of purchase. This dozer (Equipment No. T-11, serial number 07XM03458) is seventeen years old and currently has a total of 4,778 operator hours. It is used very little.
5) 1998 BG225B paver that was purchased in 1999 at a cost of $165,385 with a total of 40 operator hours at the time of purchase. This paver (Equipment No. F-1, serial number 06YK00598) is eighteen years old and currently has a total of 1,040.5 operator hours. It is used very little due to the fact that the paving jobs are no longer done in-house but are contracted out instead.
As part of the Customer Purchase Agreement for the new loader, Empire CAT has assigned a trade-in value for Equipment No. I-22 of $16,000.00, I-18 of $28,000.00, T-16 of $8,000, T-11 of 160,000.00 and F-1 of $25,000. The total of the trade-in, $237,000, has been deducted from the $182,584 price for the 2016 930M loader with an amount due to Gila County of $54,416. |
| Evaluation |
In reviewing all options to obtain the best price for the purchase of a 2016 930M wheel loader with coupler, bucket and forks, Gila County staff asked Empire CAT to prepare a proposal for the purchase of the wheel loader based on its City of Tucson contract through the National IPA Cooperative Purchasing Agreement, of which Gila County, as a cooperative member, can utilize.
By utilizing the City of Tucson contract with Empire CAT through the National IPA Cooperative Purchasing Agreement, the County can purchase a new wheel loader for less than a used wheel loader is selling for minus the National IPA Agreement. For instance, a good, used, low hour wheel loader on the market without the National IPA discount would cost roughly $190,000.
The Customer Purchase Agreement with Empire CAT shows the sales price for the new 2016 930M wheel loader to be $182,584. This price includes an extended warranty for five years or 3000 hours on Power-train and Hydraulics. With the deduction for the trade-in of the five pieces of equipment totaling $237,000.00, the final cost for the new 2016 930M wheel loader is a credit amount of $54,416. |
| Conclusion |
| It would benefit Gila County to take advantage of a cooperative agreement that Caterpillar has with the City of Tucson and National IPA which results in a $54,416 savings for the discounted pricing offered through the City of Tucson contract. |
| Recommendation |
| The Public Works Division Director recommends that the Board approve the Customer Purchase Agreement with Empire CAT for the purchase of one 2016 930M wheel loader with coupler, bucket and forks, and trade-in of five pieces of equipment for the total credit amount of $54,416. |
| Suggested Motion |
| Information/Discussion/Action to approve a Customer Purchase Agreement between Gila County and Empire CAT for the trade-in of five pieces of equipment totaling $237,000 and the purchase of one 2016 930M wheel loader with coupler, bucket and forks resulting in a credit due to Gila County in the amount of $54,416. (Steve Sanders) |
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