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_~. <br />ORANGE COUNTY <br />BOARD OF COMMISSIONERS <br />ACTION AGENDA ITEM ABSTRACT <br />Meeting Date: September 5, 2000 <br />Action Agenda <br />Item No. _. $-o~ <br />SUBJECT::Bid Award: Landfill Com actor for Oran a Count Landfill <br />DEPARTMENT: Purchasing/Solid Waste PUBLIC HEARING: (Y/N) No <br />ATTACHMENT(S): INFORMATION CONTACT: <br />• Pam Jones, 245-2652 <br />Bid Tabulation Ga le Wilson, 958-2885 <br />TELEPHONE NUMBERS: <br />Hillsborough 732-8181 <br />Chapel Hill 968-4501 <br />Durham 688-7331 <br />Mebane 336-227-2031 <br />PURPOSE: To consider awarding a bid for a Landfill Compactor for the Orange County Landfill. <br />BACKGROUND: Orange County is required by State regulation to compact trash disposed of at the <br />Orange County landfill. The compactor that accomplishes this task is in use throughout each day the <br />landfill is open for operation, and has a useful life of approximately six years. Accordingly, the Landfill <br />equipment replacement policy calls for a new Landfill Compactor every six years, with a replacement of <br />one Land511 Compactor planned far the 2000-2001. fiscal year. <br />The County's REX 370-C has been identified as the specific unit to be replaced. Specifications were <br />developed by staff that met the County's needs. Included in the bid call was the option for the vendors to <br />take the surplus Landfill Compactor in as a "trade in". The bid call was advertised and bids were solicitec <br />from eleven vendors. Three bidders responded. Bids were evaluated by staff. Pioneer Machinery Inc. <br />of Sanford, North Carolina submitted the lowest responsible bid that was responsive. They bid a CMI <br />Trashmaster 3-70C at a net delivered cost of $315,972. That price includes a 5-year power train <br />warranty and a trade in allowance of $51,000 for the County's surplus Trashmaster 3-70C. <br />The Board of Commissioners raised questions at the August 30 solid waste work session regarding the <br />possibility of leasing, rather than purchasing this or other major pieces of equipment. Staff has been <br />unable to complete a full lease vs. purchase evaluation for the compactor, but can offer some preliminary <br />comments regarding leasing of both the compactor and the scraper pan, whose bids are currently under <br />consideration by the Board. The Solid Waste Department currently leases equipment when it is used for <br />a short period of time, such as for a specific construction application. Within the past 30 days a vibratory <br />roller, a sheep's foot roller, and a small D-4 size dozer have been leased by the landfill. <br />Based on many years of experience managing heavy equipment, if the user plans to utilize equipment for <br />it's useful life (six years in the above case), purchasing outright is the preferred option. It is particularly <br />true, if the equipment is used extensively and on a regular basis. Leases most often limit the hours of <br />operation, assessing a surcharge for exceeding the allotted hours which increase costs beyond the <br />