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Regular Agenda Item 4. C.

Regular BOS Meeting

Meeting Date:	10/15/2019
Submitted For:	Steve Sanders	Submitted By:	Betty Hurst, Contracts Administrator
Department:	Finance
Fiscal Year:	2019-2020	Budgeted?:	Yes
Contract Dates Begin & End:	10-15-19 to 10-14-24	Grant?:	No
Matching Requirement?:	No	Fund?:	Renewal

Information

Request/Subject

Request for purchase of one used 621G Auger Scraper s/n DBB00293 from Caterpillar Financial for 48 months $452,606.20 through the Sourcewell (NJPA) 032515-CAT Heavy Equipment contract for the Recycling and Landfill Management Division of Public Works.

Background Information

The Buckhead Mesa Landfill currently uses a dump truck and loader to carry cover material from the material pit to the working face of the landfill. The truck can haul eight cubic yards of material at a time. A typical trip involves the truck driver driving the truck to the stockpile, parking the truck, getting in the loader and loading the truck, parking the loader and getting back in the truck to haul the material to the working face. This is a time-consuming process.

Evaluation

It currently takes one employee fifteen minutes (round trip) using two pieces of equipment (loader and dump truck) to haul 8 cu. yds. of cover material to the landfill for daily cover. This is after material has been pushed into a stockpile using a bulldozer.

To determine feasibility, we moved the auger scraper from Russell Gulch to Buckhead Mesa for a day. Using only the scraper it took one employee eight minutes to haul 22 cu. yds. of cover material to the landfill for daily cover.

Conclusion

Landfill Staff should be able to move almost 3 times the material in about half the time. This will then free up the employee to perform other duties as needed during the day instead of spending the day hauling cover material. Only 2 of these machines are available in the Country and this is the better one.

The machine that Recycle Landfill Management wants to buy is a 2006 Model 621G s/n DBB00293 has approximately 1,000 hours and the maintenance records are available. The FY2020 Buckhead Landfill budget did not allow for the full payment of this equipment but there is an option of buying over 48 months. The Sourcewell contract was approved for use by the Board of Supervisors originally in August 2018 for a total of $400,000 annually for discounts of Caterpillar parts, service and equipment. To purchase this piece of equipment all at once plus any other activity during this year would exceed our allowed amount and discounts would cease at $400,000 until the next year.

The Caterpillar Financial proposal will charge 3.85% interest over 48 months. This means that Government financing through this method is less expensive than the average bank of 5% charge because Caterpillar is taking the hit on the initial depreciation. The annual payment of $84,751.55 plus tax will be due in October of each year. The final balloon payment of $56,800 will be due in 2022.

Recommendation

It is the recommendation of the Public Works Director and the Recycling and Landfill Manager to purchase a used 621G Auger Scraper from Caterpillar Financial for $452,606.20 over 48 months through the Sourcewell (NJPA) 032515-CAT Heavy Equipment contract by the Recycling and Landfill Management Division of Public Works.

Suggested Motion

Information/Discussion/Action to authorize the purchase of a used 621G Auger Scraper S/N DBB00293 from Caterpillar for $452,606.20 through the Sourcewell (NJPA) 032515-CAT Heavy Equipment contract by the Recycling and Landfill Management Division of Public Works; and authorization for the Chairman to sign the related documents. (Steve Sanders)

Attachments
Caterpillar Financial Services Corp. Finance Proposal
Empire CAT Customer Purchase Agreement - 3ea
Amendment to Empire CAT Purchase Agreement
CAT pricing attachment G
Option of Counsel