Memorandum 13-015 Used Wheel Excavator Purchase

CITY OF HOMER
PUBLIC WORKS DEPARTMENT

  Jan C. Jonker, Superintendent       Telephone: (907)235-3170
  3575 Heath St.            Fax:   (907)235-3145
  Homer, Alaska 99603                 EMAIL :     jjonker@ci.homer.ak.us

M E M O R A N D U M  13-015

To:  Walt Wrede, City Manager

From:  Jan Jonker, Public Works Superintendent

Thru:  Carey Meyer, PW Director

Date:  Thursday, January 24, 2013

Subject:   Used Wheeled Excavator Purchase

Discussion

The 2013 Public Works Capital Outlay Budget includes $120,000 for the purchase of a used wheeled excavator.  This unit will replace our old 1984 International unit which is in need of costly repairs and for which parts have become mostly obsolete.

We have researched on-line web sites and contacted several heavy equipment dealers to ascertain availability and cost of such equipment.  These units, in good condition, are hard to find but we have identified a used unit which will fit our needs.

We have identified two such pieces of equipment.

1. 2004 Volvo EW180B located in Oakley Idaho and available through Pacific Rim Machinery, Inc., Gig Harbor, WA.
a. Machine Hours: Verified 406 hours (which is virtually a new machine).
b. Machine Condition: We had a local Idaho, Volvo dealer/mechanic perform a thorough check on this machine and the report indicates that it is as presented and in excellent condition.
c. Machine Cost: $110,100.00 FOB Homer.

2. 2006 Volvo EW180B located in Maine and available through Construction Machinery Industrial, (CMI) Anchorage, AK.
a. Machine Hours:  Verified 4,450 hours.
b. Machine Condition: Machine has not been checked by a certified mechanic. CMI indicates that this machine is in good condition.
c. Machine Cost:  $112,900.00 FOB Homer.

3. We had requested information from NC Machinery, Inc., Anchorage, AK for a Cat machine but have not received a reply.

Recommendation

Approve this to Pacific Rim Machinery, Inc., 3803 Foster St., Ste. A, Gig Harbor, WA 98335 in the total amount of $110,100.00 FOB Homer for this equipment purchase.

Fiscal Note

This purchase if funded from the Public Works Fleet Reserve Fund No. 152.383 at an approved budgeted amount of $120,000.00.

The remainder of these funds will be used to purchase some additional attachments for this excavator, i.e. ditch cleaning bucket.