ITEM TITLE:
Approval to Purchase a 2023 CAT 966 Loader from NC Machinery in the Amount of $426,075.00
SUBMITTED BY:
Joe Russell, Interim Public Works Director
FISCAL NOTES:
Expenditure Required: $426,075.00
Unencumbered Balance: $394,600.00 Budgeted, $31,475.00 from Major Equipment Fund Balance
Funding Source: 350-0400-5800; Major Equipment
RECOMMENDATION:
Approve the purchase of a 2023 CAT 966 Loader from NC Machinery in the amount of $426,075.00.
SUMMARY STATEMENT:
• Unprecedented inflation has outpaced the budgeted amount for this piece of equipment by $31,475.00 for an exact replacement of current fleet.
• The Major Equipment Fund Balance in the amount of $31,475.00 will be used to cover the actual outlay required.
Accumulated fund balance is a result of a combination of prior years’ actual expenditures having been under-budget or deferment of major equipment purchases.
This 2023 CAT 966 Loader is in the 2023 Major Equipment Schedule for Solid Waste Department. This equipment will be purchased through the State of Alaska procurement contract in accordance with the 10-year replacement schedule.
This new 2023 CAT 966 Loader will be replacing a 2012 CAT 966K Loader with 5616 hours that is assigned to the Solid Waste Department. The purchase price includes a Material Handling Arm with a 19,000-pound lifting capacity, which will be used for assisting Sewer/Water department in the Lagoon Dredge operation, and other heavy lifting.
The City of Valdez will see a significant price discount ($317,978.00) by utilizing the State of Alaska Purchasing Agreement. (List price on the 966 with Material Handling Arm is $744,053.00) Once delivered the 2012 CAT 966k will be sold as surplus. This new 966 will be assigned a 10-year life expectancy.