Solid Waste recommends the City Council approve the purchase of an additional 3-year warranty period for the compactor from Tractor & Equipment Company in the amount of $140,110.

Solid Waste owns two landfill compactors used for daily operations at the city landfill.  A compactor usually last 3-4 years before it needs to be replaced/rebuilt.  The replacement of a landfill compactor is included in the FY23 ERP and approved FY23 budget.  Unfortunately, compactors are approximately $1.3 million dollars to replace in the current economy.  The two compactors that Solid Waste currently have are in good condition and have had minimal downtime.  Instead of replacing one of the compactors this year, staff is recommending purchasing an additional 3-year warranty and retaining the unit another 3 years.

City Council may:

• Approve the purchase of the extended warranty for $140,110; or
• Not approve the purchase.  If the purchase is not approved, staff will still retain the compactor, but be responsible for all repairs for the next 3 years.

The purchase of the warranty is unbudgeted; however the cost of the warranty is available in the FY23 Solid Waste budget due to deferring the replacement of the compactor.