To: Honorable Mayor and Members of Town Council
Through: David L. Corliss, Town Manager
From: Daniel Sailer, Public Works Director
Title
Resolution Approving the Purchase of Two 2023 938 Wheeled Loaders from Wagner Equipment Company
Body
________________________________________________________________________________
Executive Summary
The Fleet Services Manager is requesting approval of expenditure of funds to purchase (2) Caterpillar 938M Wheeled Loaders. One loader is replacing (1) 2008 Caterpillar 930H Wheeled Loader for Castle Rock Water. The second loader is replacing (1) 2002 Volvo L90D for Public Works. Both units being replaced have reached or exceeded the end of their useful lifecycles and have met all the requirements for replacement as outlined in the vehicle replacement policy. This request is fully funded through contributions to the Fleet Replacement Fund. We are seeking Council approval to move forward with the purchase order.
History of Past Town Council, Boards & Commissions, or Other Discussions
The purchase of these pieces of equipment were originally included in the 2020 and 2022 Council approved budgets. The pandemic and manufacture supply chain shortages delayed purchasing in each budget year. Approved funds have been carried over into 2023 budget.
Discussion
The Fleet Division works with each department to manage vehicle assets at the lowest total lifecycle cost that we can within available resources. Departments contribute annually to the Vehicle Replacement Fund for vehicles and equipment in their fleet. Funds are then used to replace vehicles and equipment based on the Vehicle Replacement Policy. The policy provides a standard for identifying replacements at their lowest total lifecycle cost. These loaders have a targeted replacement of 6500 hours or 12 years which is the projected lowest total lifecycle cost for this class of vehicle.
The Public Works loader is 20 years old and has more than 7,000 hours. This unit is overdue for replacement by standards established in the Vehicle Replacement Policy. The replacement of this loader was approved in the 2020 budget but was not replaced due to the pandemic and manufacture delays. This replacement will be funded through the Vehicle Replacement Fund.
The Water Department loader is 14 years old and has more than 3800 hours. This unit also meets the criteria for replacement in the Vehicle Replacement Policy and was approved in the 2022 budget. This replacement will be funded through the Vehicle Replacement Fund.
The intent to purchase both loaders were combined in 2022 since one was delayed from 2020. Each new loader was quoted at $269,642 and a letter of intent was signed in 2022 by the former Fleet Manager. The Public Works Department is seeking Town Council approval as the expenditure is above the Town Manager’s approval limit.
Budget Impact
Wagner Equipment Company provided a quote of $269,642 for each loader citing Sourcewell Caterpillar contract #032119. The total cost for both loaders is $539,284. A letter of intent to purchase was signed in 2022 and as a result the town was able to save $32,357 due to a 6% price increase that took effect in 2023. The estimated delivery date for the new loaders is May 5, 2023.
The total cost of $539,284 is fully funded by the Vehicle Replacement Fund 221-8100-481.70-40 through contributions by each department.
Staff Recommendation
The Public Works Commission and staff recommends the Town Council approve the purchase agreement as each loader has meet the standards for replacement and have increasing lifecycle cost that warrant replacement. Delaying replacement will result in continued increased manufacture cost and delays. An increase of 6% has already occurred in 2023.
Proposed Motion
“I move to approve the Resolution as introduced by title.”
Alternate Motions:
“I move to approve the Resolution as introduced by title with the following conditions: (list conditions).
I move to continue this item to the following future Town Council meeting date: (list date)”
Photo
Attachments
Resolution
Exhibit 1: Quote