HomeMy WebLinkAbout~Master - Continued use of Wheel Dozer at the Power Plant RESOLUTION NO. 14-558
RESOLUTION APPROVING CONTINUED USE OF EXISTING WHEEL DOZER AT
THE POWER PLANT'S COAL YARD
FOR THE CITY OF AMES,IOWA
WHEREAS, a rubber-tired 2009 wheel dozer is operated in the Power Plant's coal yard to
move and compact coal; and,
WHEREAS, in 2009,the Council awarded a bid to Ziegler Caterpillar of Altoona, Iowa,to
purchase the current wheel loader for$621,502,and the purchase contract included a$250,000 buy-
back guarantee; and,
WHEREAS, Ziegler Caterpillar's buy-back guarantee is for five years and 6,000 hours of
use; and,
WHEREAS, the wheel loader was purchased based on the net low evaluated cost by using
the cost of the machine less the guaranteed buy-back; and,
WHEREAS,as of October 16,2014,this wheel loader had approximately 2,960 hours on the
hour meter after three years of use; and,
WHEREAS, typically, the option to exercise the buy-back guarantee significantly benefits
the City when the hours and replacement cycle of the wheel dozer follows the anticipated usage
schedule; and,
WHEREAS,another option,however,is to keep the machine in service and not exercise the
buy-back; choosing to keep the wheel dozer in service for an extended time period, and thereby
diminishing or foregoing the buyback, could be a better financial decision if the existing wheel
dozer's condition is acceptable to be used for the extended period; and,
WHEREAS, Fleet Services has evaluated the condition of this wheel loader and feels
confident that the condition is satisfactory to continue use in the same capacity for three more years;
and,
WHEREAS, with Council's approval,the City can choose to keep the current wheel dozer
in service beyond the limits of the buy-back,without penalty,with the understanding that the buy-
back will be diminished or foregone .
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ames, Iowa,
that authorization to continue use of the existing wheel dozer at the Power Plant's coal yard beyond
6,000 hours and five years, resulting in foregoing the $250,000 buy-back guarantee from Ziegler
Caterpillar of Altoona, Iowa, is hereby approved.
ADOPTED THIS 28th day of October, 2014.
-_Lfk� A.
Diane R. Voss, City Clerk Ann H. Campbell, Mayor
Introduced by: Goodman
Seconded by: Corrieri
Voting aye: Betcher, Corrieri, Gartin, Goodman,Nelson
Voting nay: None Absent: Orazem
Resolution declared adopted and signed by the Mayor this 28`h day of October, 2014.