Agenda - 04-01-2008-4k - Laserfiche WebLink

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2 conclusions. Of course, the sooner the County could begin use of a heavier machine, the more capacity that can be created. By increasing the current approximate 1,200 pounds per cubic yard to approximately 1,400 pounds per cubic yards landfill life can be extended by approximately 6-7 months. The current manufacturer of the type of compactors currently utilized by the County, Terex, now manufactures a new unit that can provide this extra compaction. This new unit weighs 110,000 pounds and is currently utilized in many of the surrounding counties such as Alamance County (3), Davidson County (3), Cumberland County (4), City of High Point (3), Craven County (1) and Rockingham County (3). Switching to this heavier machine would provide the best opportunity for extending the landfill life until a new transfer station is developed and available. Road Machinery, Inc. of Statesville, North Carolina has a newly manufactured machine in stock. A concern regarding possible noise levels associated with the use of the current compactors at the landfill was recently raised. However, staff is not aware of any complaints related to noise and the use of the current compactors. The noise associated with this new compactor will be comparable to the levels with the current compactors. NC GS 143-129 article (e)(6) allows for the sole source purchase of equipment when performance or price competition for a product are not available; when a needed product is available from only one source of supply; or when standardization or compatibility is the overriding consideration. It is staffs belief that this purchase meets the first two of these criteria. The Terex compactor is unique due to the fact that it is the only compactor on the market that: • Provides three wheel design that allows full width compaction in one pass • Allows the operator to have a better line of site to both the front and rear of the unit due to the "sideways" positioning of the seat, which helps to reduce accidents • Is only unit on the market that provides this level of compaction FINANCIAL IMPACT: The cost of this machine new is $645,225, which staff recommends that the County debt finance fora 59-month period to take advantage of prevailing low interest rates and to improve the cash position of the Enterprise Fund. Assuming that financing can be obtained at a 4.25% interest rate, the estimated annual payment for the truck for the next 59 months should be approximately $145,954 plus repairs and maintenance outside the warranty. Sufficient funds will be requested in the Solid Waste Enterprise Fund FY-2008/09 budget for the debt service payments. The tipping fee revenue generated by an additional six months of capacity would be about $1,363,000. RECOMMENDATION (S): The Manager recommends that the Board approve the purchase a Terex Trashmaster TC 550 landfill Compactor to be provided by Road Machinery, Inc. of Statesville, North Carolina in the amount of $645,225; authorize the Purchasing Director to execute the necessary paperwork, and authorize the Chair to sign it, subject to final review by Staff and County Attorney and approve the attached reimbursement resolution.