TO: Mayor Richard C. Irvin
FROM: Derrick Winston, Asst. Superintendent, Fleet and Facilities Maintenance
DATE: January 29, 2019
SUBJECT:
Requesting authorization to purchase a used 2008 Vermeer TG7000 Tub Grinder for the Streets Maintenance Division from Vermeer-Illinois, Inc. for $500,000.00.
PURPOSE:
To assure that the Streets Maintenance Division has dependable equipment to perform their daily work objectives and to expand forestry operation capabilities.
BACKGROUND:
The Streets Maintenance Division currently operates a 1992 Haybuster IG12 tub grinder which was purchased new in 1992. The machine has surpassed the expected service life, is not reliable due to excessive mechanical problems, and is approved for replacement in the 2019 budget.
DISCUSSION:
The capability of the current grinding machine is limited to brush and small debris resulting from forestry operations. To be worthwhile, the replacement unit would be equipped with at least a fourteen foot tub, a loading boom, and an engine capable of producing at least 900 horsepower. A machine with these attributes would allow processing of virtually all forestry debris. In addition, a local maintenance facility would be beneficial.
Due to budget constraints, the purchase of a new tub grinder was not feasible so the used market was searched. Of all the machines available, one met the desired requirements.
Vermeer-Illinois Inc., located at 2801 Beverly Drive, Aurora, IL 60502 has a used 2008 Vermeer TG7000 tub grinder for a listed sale price of $523,000.00. This machine meets all of the required specifications, and is in near-new condition. On average, the industry standard service life for heavy equipment is typically 10-12 thousand hours. This machine has 1,264 hours of use and has been refurbished, complete with a rebuilt engine. Price negotiation combined with a trade in allowance of $18,000.00 for the existing 1992 Haybuster IG12, reduces the final sale price to $500,000.00.
Vermeer is a reputable forestry machine manufacturer and Vermeer-Illinois Inc. is able to provide maintenance and replacement parts support from their facility which is located in the City of Aurora.
The purchase of this 2008 TG7000 tub grinder will enable Aurora's Streets Maintenance Division to efficiently process daily forestry debris, provide the capability to process larger volumes of debris collected from storms.
Monies will be drawn from account number 340-4460-431.74-99, in which $500,000.00 is budgeted for this purchase.
A price quote with warranty information for the 2008 Vermeer TG70000, a price quote of $1,019,101.00 for a new 2019 equivalent model, and a comparable unit are attached.
IMPACT STATEMENT:
The purchase of this used 2008 Vermeer TG7000 tub grinder will greatly enhance the forestry operation capabilities of the Streets Maintenance Division.
RECOMMENDATIONS:
That the City Council approve the purchase of a used 2008 Vermeer TG7000 tub grinder for the Streets Maintenance Division from Vermeer-Illinois Inc. for $500,000.00.
cc: Alderman O’Connor, Chairman
Alderman Bugg
Alderman Mesiacos
Alderman Mervine, Alternate
Alex Alexandrou, Chief Management Officer
Ken Schroth, Schroth, Director of Public Works
Jim Birchall, Superintendent, Fleet & Facilities Maintenance
Jolene Coulter, Director of Purchasing
Martin Lyons, Chief Financial Officer/City Treasurer
CITY OF AURORA, ILLINOIS
RESOLUTION NO. _________
DATE OF PASSAGE ________________
title
A Resolution to purchase a used 2008 Vermeer TG7000 tub grinder from Vermeer-Illinois Inc. for $500,000.00.
body
WHEREAS, the City of Aurora has a population of more than 25,000 persons and is, therefore, a home rule unit under subsection (a) of Section 6 of Article VII of the Illinois Constitution of 1970; and
WHEREAS, subject to said Section, a home rule unit may exercise any power and perform any function pertaining to its government and affairs for the protection of the public health, safety, morals, and welfare; and
WHEREAS, the Streets Maintenance Division currently operates a 1992 Haybuster IG12 tub grinder, to perform forestry operations. The machine was purchased new in 1992, has surpassed the expected service life, and is approved for replacement in 2019; and
WHEREAS, Vermeer-Illinois Inc., located at 2801 Beverly Drive, Aurora, IL 60502, has a used 20008 Vermeer TG7000 tub grinder for a listed sale price of $523,000; and
WHEREAS, Price negotiation combined with a trade in allowance of $18,000.00 for the existing 1992 Haybuster IG12, reduces the final sale price to $500,000.00; and
WHEREAS, $500,000.00 is budgeted in account number 340-4460-431.74-99 for this purchase; and
WHEREAS; pursuant to Aurora Code Section 2-335(a)(3) the desired product is provided by only one source in this situation; and
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Aurora, Illinois, as follows: that the Purchasing Director is hereby authorized to issue the necessary orders to implement purchase of a used 2008 Vermeer TG7000 tub grinder for the Streets Maintenance Division from Vermeer-Illinois Inc. for $500,000.00.