HomeMy WebLinkAboutGarbage Committee Minutes 09.14.1982' M I N U T E S
GARBAGE . COMMITTEE
DATE dente ber 14,__1_q$2TIME 4:42 .m.
PLACE OF MEETING
A. Members present: Chairman Marvin Carter
Curt Riemann , Larry Peterson , .Dave Michael,. Lonnie Kellogg
B. Other's present:Jim Redman, Bill F41er Duane Behm Bob Gauthier,
on ac mann, John Linton, Gene Endreseh, Larry Spence,
A quorum (3 or more) present the following action was taken by Ray Kunkel,
the committee: Bob Schreiner
Larry Peterson &.Dave Michael's compactor letter discussion
postponed until after 4:00, Wednesday, September 15th.
Meeting adjourned at 6:00 p.m.
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Respectfully submitted,
Marvin Carter, Chairman
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P.O. BOX 10
PHONE: 628-8791
City of Laurel
LAUREL, MONTANA 59044
September 14, 1982
Marvin Carter, Chairman and
Garbage Committee Members
Gentlemen:
PUBLIC WORKS
DEPARTMENT
After reviewing the bids for a landfill compactor which
were:
1) Western Equipment = 1 used Bomag K401.......$83,912
2) Tractor & Equipment = 1 new Cat 950B........ 111,937
3) Hall Perry Machinery = 1 new JD 646C........ 122,251
4) Western Equipment = 1 new Bomag K451........ 159,196
-Thet-at 950B and JD 646C use the same type of wheels
which DO NOT have cleaners on them for operation.in event
of muddy weather and to keep wheels free from trash, wire,
etc. Both John Deere and Cat are rubber tire loaders with
steel compacting wheels added.
We recommend the purchase of the Bomag K401 from Western
Equipment for the following reasons:
1) Cost $83,912 compared to the Cat 950E of $111,937, a dif-
ference of $28,025. The JD 646C of $122,251, a difference
of $38,839, and the Bomag K451 of $159,196 a difference
of $75,284.
2) The warranty is the same on all bids - 1 yr. t'u11 service
with 2 yr. extended on motor and drive train.
3) As per letter to Garbage Committee and Marv Carter of
June 2, 1982, (copy attached) dealing with cost estimates
and incomes. The Bomag K401 is approximately $12,000
less than cost projection and falls in the plan to have
the garbage in the black ink in a 5-yr. period.
4) The Bomag bid of $83,912 is approximately $12,000 less
than projected prices. The Cat loader at our landfill
had a salvage value estimated at $11,000. With the savings
on the bid price we can keep the Cat 955L loader for a
backup unit and still be in the projected cost estimate
for the 5-yr. period.
We hope the Garbage Committee will take prompt action
on this matter and award the bid to Western Equipment for the
used Bomag K401 for $83,912.
5inc ely, -
Larry S. Peterson
" Drectgr of Public Works/
TRACTOR & EQUIPMENT
New Cat 950B
Standard Factory Warranty
Extended Power Train Warranty
5000 service meter hours or 36 mo.
Bid Price. . . . . . . . . . $111,937
36 mo. Lease/Purchase $3,583.03/mo.
$128,989.08 total payout
HALL PERRY MACHINERY
New JD 646C
Warranty 1 yr or 1500 hrs on machine
2 yr extended on power train
Bid Price. . . . . . . . . . $122,251
36 mo. Lease/Purchase $3,912.03/mo.
$140,833.08 total payout
WESTERN EQUIPMENT
one (1) used K401 Bomag
Warranty 1 yr full service _
2 yr limited warranty
Bid Price . . . . . . . . . . $83,912
36 mo. Lease/Purchase $2,787.08/mo.
$100,334,88 total payout
one (1) new K451 Bomag
1 yr full warranty
2 yrs limited warranty
Bid Price. . . . . . . . . . $159,196
36 mo. Lease/Purchase $5,287.59/mo.
$190,353.24 total payout
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City of Laurel
P.O. BOX 10
PHONE: 628.8791
TO:
FROM
RE:
LAUREL, MONTANA-59044 PUBLIC WORKS
June 2, 1982 DEPARTMENT
Marvin Carter, Chairman, Public Health & Garbage Committee-
Larry Peterson, Director of Public Works
Garbage and Landfill costs
You, as Chairman of the Garbage Committee, have a basic
issue to decide and make a recommendation to the City Council;
should the City stay in-the Garbage/Landfill business or sub-
contract to a private hauler (one private proposal has been
received as you know).
I have prepared cost estimates for a five-year period
for both private hauler costs similar to the proposal received
and also rpr doing it our Moderate and reasonable
cost incre es are assumed during-the five-year period and
these are pointed out in the summary on following pages.
Ir
The analysis for the City staying in the Garbage/Landfill
business includes buying immediately a landfill compactor on
a full service three-year lease; at the end of three years
we own the equipment. This would be a used and fully recon-
ditioned (factory warranty) machine especially designed for
landfill operation. Initial cost on this machine is approxi-
mately $96,000 or $3,600/mo. Continued operation with our
existing cat will result in a probably yearly maintenance
cost exceeding $8,000/year. The present cat is admittedly
undersized and mechanically troubled. A replacement cat of
the proper size would cost approximately $155,000 with useful
service life of about five years. The landfill compactor
being considered has a demonstrated useful life of at least
ten years, probably fifteen with our size operation. The
compactor would be less expensive to operate daily; this is
reflected in lower operation costs during the five years.
This analysis also reflects immediate purchase of a new
garbage truck similar to the H-C-L Equipment demonstration
unit we'll see on June 3. This would have a life span of
five years, be mechanically superior to our present trucks,
be more maintenance free and cheaper to operate. This truck
would be available also on a three-year lease/purchase,
initial price of about $70,000 or about $2,400/mo. The pur-
chase of a new garbage truck is inevitable because of the
current condition of our oldest machine (G-1).
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JuI,? i )62
Garbage & Landfill
Labor costs are assumed to rise 9% annually and population
is assumed to rise 3% annually.
It is further assumed the committee adopts immediately
by resolution a $7.00/ino. residential garbage rate and increases
by 10% all commercial rates. Base data for population is
May, 1982, with a recorded water-garbage billing of 1854,
less 197 businesses-for a residential base of 1657 households.
No other cost increases would be necessary during this five-
year period.
In addition, if the City uses a compactor at the landfill,
the landfill site will last approximately fifteen years. With-
out the use of a landfill compactor the City will incur the
additional cost of leasing another ten acre site, fencing
another ten acre site, etc., in only five more years (if we
use the crawler cat to work the landfill). A landfill com-
pactor will place three to five times as much gat-bage in
the same size pit'as our present method using the cat. This
will be an important consideration when the new Wastewater
Treatment Plant goes on line and we start hauling: the Waste-
water Tred"*Ftent Plant sludge up there every month. T
From the table on page a you can see an expected
surplus of approximately $102,000 would result with the City
operation. This surplus would go into garbage/landfill
equipment.reserves to continuously replace trucks (or add
trucks) every three to five years.
By going to a private hauler with a proposed operation
like Big Sky Haul Away, the City not only would not accumulate
any equipment reserve but would likely need to raise rates to
cover the $51,000 deficit.
Based on this cost estimate I recommend the following:
1) Raise residential garbage rates to $7.00,/mo.
2) Raise commercial rates at least 20%.
3) Purchase a new garbage truck now, salvage a used one.
4) Purchase a landfill compactor now, salvage existing cat.
5) Raise landfill rates to non-city users.
LSP/p,j
Sincere Y,
Larry S. Peterson
Director of Public Works
cc: Garbage Committee members
Budget Co:rtmittee Ch. Duane Behm
Mayor Albert Ehrlick
Dave Michael, Public Utilities Director
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I Landfill and Garbage
costs total
Year
1 2 3 4 5
$202,000 $229,750 $239,500 $179,900 $191,970
Total garbage cost - 5 years $].,043,120
or approx. $20$,620/year
Landfill and Garbage
total costs
Private Hauler
city run Landfill and
Garbage total revenue
with one rate increa e
as noted in text •
City surplus (+)
or deficit (-)
$1,]96,000
$1,145,250
+ $17,000 -$6,350*-$10,170*+$54,000 +$47,600
Total 5 yr. surplus if City run
with no increase after initial $102,100
rate hike
*City currently has approximately $60,000 in cash on hand in the Garbage
Fund to make up these deficits.
Total cost to City under private
hauler (assumes no rate increase
to cover deficit)
$50,750
-a-
Li ty Garbage & Landfill Cost - 5 yrs
Landfill Year
4
5
Oasts/Yr 1 2 3
($43,200 - $11,000)*
Eiomag
Compactor
$32,200
$43,200
$43,200
0**
0
Maintenance 0 0 0 $1,500 $1,500
Gas,oil,grease 41000 4,200 4,330 4,550 4,770
Labor 32,000 34,800 38,000 41,400 45,200
Misc. 3,000 3,500 3,500 3,700 3,700
Mgt, Ins.,etc. 4,300 4,500 4,740 4,980 5,200
Totals $75,500 $90,200 $93,700 $56,130 $60,370
Garbage
Costs/Yr
($29,200 - $7,000)**
New Vehicle . $2-2q200
Maintenance 0
Gas,oil,grease 18,500
Ins.,Mgt,misc. 11,400
Labor 33,400
New containers 8,000
Internal 33,000
$29,200 $29,200 0*** 0****
0 0 $1,500 $1,500
19,400 20,400 21,400 22,500
11,900 12,500 13,200 13,900
36,400 39,700 43,200 47,200
8,000 8,000 8,500 8,500 (A)
34,650 36,000 36,000 38,000
Totals $126,500 $139,550 $145,800 $123,800 $131,600
* $11,000 estimated salvage value of cat now in use
** $7,000 salvage value of retired truck
*** equipment paid for at end of three years
**** replace truck at end of 5 years
(A) new containers costs stays low because of higher quality cans, better
handling equipment, damages fewer
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?,.ILy Garbage & Landfill Revenue for 5 years
Year
Revenue 1 2 3 4 5
1660 Res.
units $139,440 $143,623 $148,000 $152,400 $157,000
Multiple
units 29,050 29,050 29,050 29,100 30,000
Business 48,400 48,400 49,852* 49,852 49,852
Landfill* 2,200 2,310 2,425 2,550 2,675
Totals $219,090 $223,400 $229,330 $233,400 $239,530
* Reflects 3% increase in # of businesses in 3 yrs
Assumes 5% increase in landfill revenue per year
Private Hauler Costs - Based on Proposal Received
Year
Costs 1 2 3 4 5
Hauler Fees $138,000 $138,000 $158,700* $182,500 $209,900
Used truck .:i
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salvage -13,000 0 0 0 0
City Internal** 33,000 34,650 36,380 38,200 40,100
New containers 8,500 8,500 8,500 8,500 8,500
City 1 man 17,000 18,550 20,200 22,000 24,000
Alleys &
Misc. (1) 101000 10,500 11,025 11,570 12,200
Totals $193,500 $210,200 $234,800 $262,770 $294,700
*Hauler assumes 15% increase after first two years
**City costs assumed to rise 5% annually
(1) Assume 5% year increase
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