ITEM TITLE:
Approval to Purchase a 2023 CAT 966 Loader from NC Machinery in the Amount of $417,353.00
SUBMITTED BY:
Joe Russell, Interim Public Works Director
FISCAL NOTES:
Expenditure Required: $417,353.00
Unencumbered Balance: $370,000.00 Budgeted, $47,353.00 from Major Equipment Fund Balance
Funding Source: 350-0400-58000; Major Equipment Reserve
RECOMMENDATION:
Approve the purchase of a 2023 CAT 966 Loader from NC Machinery in the amount of $417,353.00.
SUMMARY STATEMENT:
• Unprecedented inflation has outpaced the budget for this piece of equipment by $47,353.00 for an exact replacement of current fleet.
• Funds from the Major Equipment Fund Balance in the amount of $47,353.00 will be used to cover the actual outlay required.
The accumulated fund balance in the Major Equipment Fund is a result of a combination of prior years under budget expenditures and deferred purchase of major equipment.
The 2023 CAT 966 Loader is in the 2023 Major Equipment Schedule for the Streets Department. The equipment will be purchased through the State of Alaska procurement contract in accordance with the 10-year replacement schedule, which fall within the procurement code.
This new 2023 CAT 966 Loader will be replacing a 2013 CAT 966k Loader with 5630 hours that is assigned to the streets department.
The City of Valdez will see a significant price discount by being able to utilize the State of Alaska Purchasing Agreement. Once delivered the 2013 CAT 966K will be sold as surplus. This new 966 will be assigned a 10-year life expectancy.