Title
Resolution to Approve the Lease - Purchase of Two Frontload Refuse Trucks from Bell Equipment Company with Financing from 1st Source Bank ($470,712.08)
Memorandum
The attached resolution authorizes the one year lease-purchase of two 2008 Mack model MRU 613 chassis’s with Heil model HPH-E-28 frontload packer bodies with a maximum first year cost of $235,356.04 each for a total of $470,712.08 for lease and purchase if the City retains ownership at the end of the lease term. The vehicles will be supplied by Bell Equipment Company, Lake Orion, MI with financing being supplied by 1st Source Bank, Fort Wayne, IN.
These units will replace a 2000 and a 2001 frontload refuse truck currently being used by the Field Operation Unit for commercial solid waste and recycling collection.
The 2000 truck has been in service for 7.5 years and has over 9,510 hours of use. This unit has severe corrosion to major structural components of the packer body. These cross members support the floor of the packer body and are used to secure the entire packer body to the frame of the truck chassis. The repair for this would require separating the packer body from the truck chassis and cutting out the corroded structure back to a point of solid metal then welding back in new metal. This would require downing the unit for a minimum of three to four weeks and cost an estimated $40,000.00.
The 2001 truck has been in service for 6.5 years and has over 10,200 hour of use. The packer body floor, walls, and packer blade guide channel are cracking and thinning. This repair would require the removal of the tailgate and packer blade from the unit and then “skinning” or welding new sheets of steel to the complete interior of the packer body. The estimated down time for this is two to three weeks with a cost of $33,500.00.
Both trucks will have temporary repairs to keep them in operation for the estimated 90 days it will take for the delivery of the new units. But the excess cost and d...
Click here for full text