TITLE
Consider a memorandum/resolution authorizing a lease with purchase option of a wheel loader for the Solid Waste Transfer Station.
SUMMARY
DATE: September 5, 2017
TO: Ronald L. Olson, City Manager
FROM: Jonathan Locke, Executive Director of Finance
SUBJECT: Authorize a lease with purchase option of a wheel loader for the Solid Waste Transfer Station.
BACKGROUND AND FINDINGS:
The three-year lease on one of the transfer station’s existing wheel loaders expires in September 2017. Due to the environment in which this unit operates and the projected cost of maintaining this heavy equipment, staff does not feel that purchasing the existing unit would be in the best interest of the City. The Transfer Station is therefore requesting to initiate a new three-year wheel loader lease with a purchase option at the end of the lease.
This machine is used on the floor of the Solid Waste Transfer Station to move waste that is unloaded from the city’s refuse trucks into the transfer trailers. These transfer trailers then haul the solid waste to the landfill.
THE ALTERNATIVES CONSIDERED:
1) Purchase the existing loader for $119,919.01. This machine would have no warranty remaining and, due to the environment in which it operates, repair and maintenance costs would undoubtedly increase. Future reliability would also be of concern.
2) Return the loader and not replace it. This would limit the operation to two loaders with no back-up. One of the loaders is a reliable one year-old loader; the other is a questionable 14-year old loader that is currently used as a back-up when one of the two newer loaders is down for services or repair.
3) Initiate a three-year lease, as in the past, for a new wheel loader that will provide dependable service.
Which alternative is recommended? Why?
The third alternative is recommended due to the criti...
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