Staff recommends purchasing the services to rebuild the compactor from Tractor and Equipment Co. for the amount of $478,881.60

The landfill has a 2019 836K compactor with approximately 10,866 hours.  A compactor is in the FY25 Equipment Replacement Plan and the proposed FY25 Solid Waste budget for replacement in the amount of $1,300,000.  In FY24 we utilized CNG fueling station money, because that project was deferred, to rebuild unit 262.  Unit 261 is in a similar shape and needs to be rebuilt.  There are signs from recent repairs/diagnostics that the motor is in distress and could suffer a catastrophic failure costing more than the estimated rebuild cost of $478,881.60.  Currently, we are not using this machine on a regular basis and are only using it when absolutely necessary.  Considering the timing of the recent indicators of potential failure and the price of a new compactor, staff is recommending a rebuild of the powertrain and hydraulics.  This work will extend the life of this compactor for another 3 years or 10,000 hours.  This rebuild will result in both compactors being "new" and under warranty, resulting in lower maintenance costs.  Included in this price is a 3 year/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 $478,881.60, or;
• Not Approve.  If not approved, the compactor will need to undergo expensive repairs to keep it running and will continue to sit idle.  

The replacement of a compactor is budgeted in FY25.  By deferring the replacement and rebuilding this unit, we will save approximately $821,118.