Staff recommends that City Council approve the purchase of a Caterpillar bulldozer from Tractor and Equipment Co. in the amount of $1,481,573.08, less a trade amount of $20,000 for a net amount of $1,461,573.08.

The landfill currently operates three bulldozers: one assigned to Class II waste, one to Class IV waste, and a third used for slope erosion repairs, road construction and maintenance, and building ponds for fats, oil, and grease (FOG).  This third bulldozer also serves as a backup to ensure high compaction rates are maintained when either of the other units is down.  One of the existing bulldozers has exceeded its useful life and was scheduled for replacement in FY26, with funding  included in both the FY26 Solid Waste budget and FY26 Equipment Replacement Plan. 

However, about a month ago, the engine in this bulldozer failed, rendering it inoperable.  The cost of repair is high relative to the limited additional service life it would provide.  As part of the replacement process, staff evaluated both John Deere and Caterpillar options.  Our current John Deere bulldozers incur approximately $199,500 annually due to frequent repairs as well as rental costs due to downtime, while the Caterpillar unit costs significantly less, around $112,000 annually, making it the more cost-effective choice over the equipment's lifespan. 

Staff recommends procuring the Caterpillar bulldozer through the Sourcewell cooperative purchasing agreement.  

City Council may:

• Approve the purchase of a Caterpillar bulldozer from Tractor and Equipment Co.; or,
• Not approve the purchase of the bulldozer.  If not approved, staff will need to rent equipment for landfill operations as one of the current bulldozers is inoperable and it is too expensive to repair given it's age and condition.

The bulldozer will be purchased through the Sourcewell cooperative purchasing agreement for a total of $1,481,573.08.  Two trade-in options were offered for the existing inoperable bulldozer: $20,000 as-is, or $65,000 if repairs were completed prior to trade in.  However, the cost to make the unit operable again far exceeds the additional $45,000 in trade-in value, making the repair option economically unfeasible.  As a result, we will proceed with the $20,000 trade-in offer for the inoperable equipment.  This brings the net purchase price of the new bulldozer to $1,461,573.08.