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<br />M Martinsville <br /> <br />City Council <br />Agenda Summary <br /> <br />Meeting Date: <br />Item No: <br />Department: <br />Issue: <br /> <br />February 14, 2006 <br />6. <br />Public Works <br /> <br />Discussion of option to purchase a track loader currently being <br />used at the City landfill and leased from Carter Machinery <br /> <br />Summary: <br /> <br />Last October, arrangements were made on a temporary basis to lease a track loader from <br />Carter Machinery for use at the City landfill. At that time, substantial downtime for <br />existing landfill equipment was occurring due to age and frequent repairs and it became <br />necessary to make provisions for reliable equipment on-site in order to insure daily cover <br />activities could be carned out as required by DEQ. <br /> <br />Through the end of this month, the equipment will have been leased for four months at a <br />cost of $25,200 ($6,300/month). The City has the option to purchase the track loader at <br />the government price of$185,971 and if the decision to purchase is made, all monthly <br />lease payments will be applied to the purchase price. Additionally, the City recently sold <br />the landfill compactor, which was no longer needed, for $65,000. Over the next several <br />months the remainder of the landfill equipment will be sold as surplus, and it is <br />anticipated the total revenue from the equipment sales plus the $65,000 from the <br />compactor, will be adequate to cover most, if not all, of the purchase price of the new <br />loader. <br /> <br />Once landfill closure occurs, the City will still be required by DEQ to provide post-closure <br />maintenance at the facility; to repair erosion problems, clean/repair the sediment basins, <br />keep access roads around the facility in good condition, keep drainage channels in good <br />condition, etc. The equipment will also be available for general-purpose work on City <br />projects and emergencies. The loader currently being leased is new, still under warranty, <br />and should adequately serve these needs for many years. <br /> <br />It is recommended that Council authorize staff to proceed with arrangements to purchase <br />the track loader, utilizing funds from the sale of surplus landfill equipment and lease <br />payments already made. <br /> <br />AttachDlents: None <br /> <br />Recommendations: Place on next agenda <br />