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Polk County purchases used loader after engine failure; insurance denies claim
Summary
Following an engine failure that left an older loader inoperable, the board approved buying a 2023 used CAT 914 with a powertrain warranty for $87,440 and authorized budget shifts; county's insurer deemed the loss an engine failure rather than a covered fire peril.
County solid-waste staff (S9) reported that a backup front-end loader experienced an engine runaway with internal smoke and was rendered inoperable. An insurance adjuster and MCIT reviewed the incident and concluded the damage resulted from engine failure rather than an insured fire peril, so the county's claim was denied. Staff presented two options: repair the old machine (estimated at $51,891) or purchase a used 2023 CAT 914 wheel loader quoted at $87,440 with a three-year, 500-hour powertrain extended warranty.
After discussion about routine maintenance schedules and the need for a reliable backup, a committee member moved to purchase the used loader and allocate funds by shifting other projects in the existing budgets; the motion passed by voice vote. Staff said the new unit will be enrolled in a regular maintenance program with Ziegler and delivered turnkey; foam-filled tires are an additional county expense.
Board members asked about the insurance appeal process; staff said the adjuster and MCIT had reviewed the damage and that engine failure is generally excluded under the county policy. The board's approval authorizes staff to complete purchase and arrange trade-ins or disposal of the old machine.
