HomeMy WebLinkAboutAgenda - 09-05-2000-8o_~.
ORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: September 5, 2000
Action Agenda
Item No. _. $-o~
SUBJECT::Bid Award: Landfill Com actor for Oran a Count Landfill
DEPARTMENT: Purchasing/Solid Waste PUBLIC HEARING: (Y/N) No
ATTACHMENT(S): INFORMATION CONTACT:
• Pam Jones, 245-2652
Bid Tabulation Ga le Wilson, 958-2885
TELEPHONE NUMBERS:
Hillsborough 732-8181
Chapel Hill 968-4501
Durham 688-7331
Mebane 336-227-2031
PURPOSE: To consider awarding a bid for a Landfill Compactor for the Orange County Landfill.
BACKGROUND: Orange County is required by State regulation to compact trash disposed of at the
Orange County landfill. The compactor that accomplishes this task is in use throughout each day the
landfill is open for operation, and has a useful life of approximately six years. Accordingly, the Landfill
equipment replacement policy calls for a new Landfill Compactor every six years, with a replacement of
one Land511 Compactor planned far the 2000-2001. fiscal year.
The County's REX 370-C has been identified as the specific unit to be replaced. Specifications were
developed by staff that met the County's needs. Included in the bid call was the option for the vendors to
take the surplus Landfill Compactor in as a "trade in". The bid call was advertised and bids were solicitec
from eleven vendors. Three bidders responded. Bids were evaluated by staff. Pioneer Machinery Inc.
of Sanford, North Carolina submitted the lowest responsible bid that was responsive. They bid a CMI
Trashmaster 3-70C at a net delivered cost of $315,972. That price includes a 5-year power train
warranty and a trade in allowance of $51,000 for the County's surplus Trashmaster 3-70C.
The Board of Commissioners raised questions at the August 30 solid waste work session regarding the
possibility of leasing, rather than purchasing this or other major pieces of equipment. Staff has been
unable to complete a full lease vs. purchase evaluation for the compactor, but can offer some preliminary
comments regarding leasing of both the compactor and the scraper pan, whose bids are currently under
consideration by the Board. The Solid Waste Department currently leases equipment when it is used for
a short period of time, such as for a specific construction application. Within the past 30 days a vibratory
roller, a sheep's foot roller, and a small D-4 size dozer have been leased by the landfill.
Based on many years of experience managing heavy equipment, if the user plans to utilize equipment for
it's useful life (six years in the above case), purchasing outright is the preferred option. It is particularly
true, if the equipment is used extensively and on a regular basis. Leases most often limit the hours of
operation, assessing a surcharge for exceeding the allotted hours which increase costs beyond the
original lease price. Additionally, there are often confusing restrictions/ responsibilities regarding who is
responsible for various repairs/maintenance. Leases also limit modifications that the user may need to
perform on the equipment, such as modifying the "push blade" on a compactor. Finally, staff believes
more favorable trade-in prices for our well-maintained equipment are obtained through an outright
purchase. Therefore, several years agp the landfill established an equipment replacement schedule and
reserve fund; which programs funds several years in advance of the purchase of major equipment.
FINANCIAL IMPACT: Total cost of this action, if approved by the Board, would be $315,972. Sufficient
funds have been budgeted in the FY 2000-01 Solid Waste/Landfill Operations fund to cover the cost, of
this purchase.
RECOMMENDATION(S): The Manager recommends that the Board award the bid to Pioneer
Machinery, Inc. of Sanford, North Carolina in the amount of $315,972; and authorize the Purchasing
Director to execute the necessary paperwork.
BID TABULATION
BID # 224
BID FOR: LANDFILL COMPACTOR BID AWARDED TO:
CLOSING DATE: 7-26-2000 BID PRICE:
CLOSING TIME: 3:30 PM BUDGETED AMOUNT:
VENDOR B/D UNIT COST TRADE /N 5 YEAR POWER NET B/D
BOND ALLOWANCE TRA/N
WARRANTY
CAROLINA TRACTOR NO NON RESPONSIVE BID (NO BID BOND)
PIONEER YES $349,972.00 -$51,000.00 $17,000:00 $315,972.01
AE FINLEY YES $324,615.00 -$30,000.00 $21,555.00 $31fi,170.~1
AL JOHN NO BID
GREGORY POOLE YES NON RESPONSIVE BID (BID NOT SIGNED)