Staff recommends purchasing the services to rebuild the compactor from Tractor and Equipment Co. for the amount of $381,919.64.

The landfill has a 2020 836K compactor with approximately 9,400 hours on it.  This compactor is in the FY25 Equipment Replacement Plan and the proposed FY25 Solid Waste budget for replacement in the amount of $1,300,000.  The compactor is in need of major repairs now in order to utilize the equipment.  The repair involves pulling the head from the motor and potentially pulling the motor depending on what is found.  The quote for that repair is $58,916 and could increase depending on the scope of work once the teardown is complete. Considering the timing of this repair and the price of a new compactor, staff is recommending the deferral of the replacement of the compactor and rebuilding the powertrain and hydraulics for $381,919.64.  The life of the compactor will be extended for another 10,000 hours after the compactor is rebuilt.  Currently, both  compactors at the landfill have a high number of hours and are unable to have warranty coverage, which is contributing to high repair costs.  Included in the price of this rebuild is a 36 month/5,000 hour warranty.  Also included is a cab refresh and a new seat to address operator comfort. 

Staff is recommending to sole source this purchase from Tractor and Equipment Co. The compactor is a Caterpillar and requires Caterpillar certified technicians to work on the equipment.  Tractor and Equipment Co. is the only authorized vendor for Caterpillar service in the region. 

City Council may:

• Approve the purchase of the rebuild with Tractor and Equipment Co. for $381,919.64, or;
• Not approve.  If not approved, the compactor will need to have the $58,916 repair completed in FY24 and replace the compactor in FY25 for $1,300,000.   

This rebuild of the compactor was not budgeted in FY24.  By rebuilding the compactor for $381,919.64 in FY24, the replacement of the compactor, scheduled in FY25, can be deferred for several years, saving approximately $918,080. The budget and cash appropriated for the CNG fueling station will be used for this purchase as the CNG fueling station has been deferred to FY25.