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City staff weigh repairing 1997 loader vs. buying used replacement after $80,000 repair estimate
Summary
A 1997 loader used by Defiance Public Works failed during winter storms; staff received a repair estimate near $80,000 and solicited quotes for used and new replacements, with a likely plan to acquire a 2023 used unit through Sourcewell for about $190,000, offset by rental credits.
City staff told the Defiance City Council on March 11 that a loader used by water distribution and streets crews since 1997 failed during February storms and is out of service.
City Administrator Bridal Mack said a repair quote for the loader came in at about $80,000. Mack said staff then sought market pricing and learned new loaders would cost in the $230,000 to $250,000 range, while Sourcewell cooperative-contract options showed a 2023 used unit at about $190,000. Mack said the vendor would credit the city for rental fees the city has paid while using a rental unit to get through the winter.
Mack said the replacement cost is not budgeted and staff are evaluating funding sources; Mack noted the probable plan is to charge the purchase to the water distribution fund rather than general fund or capital dollars. Council asked about warranties on the used Caterpillar unit; Mack said she would check.
The discussion included routine procurement approaches: checking competitive contracts, Sourcewell cooperative pricing, and pursuing a used unit if the repair cost made replacement more economical. No formal motion or purchase authorization was recorded at the meeting; Mack said staff would continue to pursue options and report back.
