AGENDA REQUEST

Sponsor:

Board of Supervisors Meeting Date: 

Raymond E. Graham, Chairman, Cedar Run District

September 14, 2006

Staff Lead:

Department: 

Michael Dorsey,  Director

Environmental Services

Topic: 

A Resolution to Authorize the Purchase of Equipment for the Operation of the Construction Demolition and Debris Recycling Facility

 

Topic Description:

In July 2006, the Board of Supervisors awarded a contract to purchase recycling equipment, and directed staff to proceed with construction activities to develop a recycling facility for construction demolition and debris (CD&D).  The project is underway.  Recycling equipment is currently being manufactured, site grading is complete, and gravel and conduit are in place.  The deadline for the recycling equipment to be operational is mid-January 2007. 

In order to operate the facility, mobile heavy equipment is needed.  Specifically, a large excavator is needed to load the recycling equipment, a small excavator is needed for pre-sorting to recover pallets and other bulky items (and to serve as back-up to load), and two rubber tire loaders are needed to push and load sorted materials.  Procurement for this equipment closed on August 30, 2006, with four firms submitting bids. 

Bidders submitted bids on the purchase of the equipment, maximum maintenance/repair for three years or 7,500 hours, training (three days), and equipment rental (for late delivery). Lease financing proposals were also requested, but it has been determined that the County can independently procure more attractive interest rates.  The low bids are listed below: 

 

Category

 

 

Rubber Tire Loaders (Each)

 

Small Excavator

 

Large Excavator

Firm

Stafford Equipment

Stafford Equipment

Theros Equipment

Equipment Model

Hyundai HL760-7A

Hyundai 140LC-7

Kobelco SK210LC

Purchase Price

$197,500

$114,500

$154,950

Guaranteed Max Maint & Repair Cost

$20,000

$20,000

$25,350

Training Cost

$4,500

$4,500

$1,000

Rental Cost (if/for late delivery)

$3,600

$3,600

0

 

Included in the bid is the “Guaranteed Maximum Maintenance and Repair Cost”.  This category includes total owner expenses during the warranty period (three years or 7,500 hours) for routine service and repairs.  With regular service, the equipment should last for 7-10 years, at which time the County will need to consider equipment replacement and/or a major overhaul.   The equipment will be operated by both Hamilton Rich and County staff to maximize flexibility and minimize operator expenses.   

Equipment manufacturing and delivery will be 60-90 days.  Therefore, it is recommended that the Board award a contract to Stafford Equipment and Theros Equipment for the above-referenced machines.

 

Requested Action of the Board of Supervisors: 

Consider adoption of the attached resolution.

Financial Impacts Analysis:

The lease purchase of this equipment is consistent with the 10-year financial plan previously prepared for the landfill.  The equipment will be lease financed over a five year period.

Identify any other Departments, Organizations or Individuals that would be affected by this request:

Finance Department
Environmental Services

 

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