ITEM TITLE:
Approval of Purchase of a 2026 Caterpillar 966 Wheel Loader from NC Machinery in the Amount of $429,690
SUBMITTED BY: John Witte, Director, Public Works Department
FISCAL NOTES:
Expenditure Required: $429,690.00
Unencumbered Balance: $450,000.00
Funding Source: 350-0400-58000, Major Equipment
RECOMMENDATION:
Approve the purchase of a 2026 Caterpillar 966 Wheel Loader from NC Machinery in the amount of $429,690.
SUMMARY STATEMENT:
The Public Works Department requests approval to purchase a 2026 Caterpillar 966 Wheel Loader from NC Machinery, utilizing the State of Alaska DOT Contract #CA2294. The loader was funded in the approved Major Equipment budget.
The manufacturer’s list price for the loader is $741,577. Through the State DOT contract, the City’s purchase price is $429,690, resulting in a total savings of $311,887, or approximately 42.1% below the list price.
The purchase price includes a 6-yard general-purpose bucket and two (2) Fusion quick couplers, allowing existing City-owned attachments to be adapted for use with the new loader. This equipment will replace a 2013 Caterpillar 966K Wheel Loader with approximately 7,500 operating hours.
Once the new loader is placed into service, we will seek Council approval to sell the 2013 Caterpillar 966K Wheel Loader in accordance with Municipal Code 4.06.020, which governs the sale and disposal of surplus City property.