City Council OKs $1,056,452 purchase of compactor for Landfill

December 10, 2024 at 2:50 pm Derrick Stuckly

Local News

City of Brownwood Public Works Director Henry Wied discusses the compactor situation at the Landfill.

During Tuesday morning’s meeting, the Brownwood City Council unanimously approved several motions regarding a new compactor at the City Landfill.

First, the Council OKed accepting a buyback offer from Yellowhouse John Deere for the Bomag Compactor in the amount of $630,000.

The Landfill budgeted for a new compactor in the ‘22-23 fiscal year. The new compactor was delivered August 9, 2023, and put in use August 21, 2023. The machine’s problems started August 23, 2023, and has had numerous issues that haven’t be resolved.

City Staff met with Bomag and Yellowhouse on June 18, 2024, to develop a plan of action. Bomag requested that the City give them 90 days to correct the issues with the machine; promising that they could have the machine operating 90% problem free at the end of this period.

On October 30, 2024, City Staff met with Yellowhouse to discuss the failed attempt to resolve the compactors issues. Yellowhouse has decided to offer the city a $630,000 buyback of the machine. The City’s original purchase cost was $838,865 and currently owes $597,196.70. Yellowhouse has also offered to leave one of the compactors at the Landfill for one month after accepting the buyback.

Next, the Council gave consent to purchase a new Aljon Compactor through a HGAC contract in the amount of $1,056,452.

Aljon Compactors are made in Ottumwa, Iowa and have been in business since 1963. City Staff visited the Fort Worth Landfill and looked at the Aljon and CAT Compactors and after watching the machine work and talking to the operators, recommended Aljon.

This machine can be delivered and in operations within 3-4 weeks. Aljon is also offering a $120,000 buyback since the City included purchasing the service agreement. Citizens National Bank has agreed to allow the payments to remain the same for the 2024-25 fiscal year, so no budget amendment is required. The payments will increase from $47,371 to $69,587 beginning December 21, 2025.

Finally, the Council passed a resolution approving one new capital lease regarding the Aljon Compactor with Citizens National Bank and assigned a property tax pledge.

The City be paying off the existing note #52846 early and need to obtain a new capital lease for the 2024 Aljon Compactor. Since Citizens National Bank has agreed to keep the 2024-25 payments the same amount as currently have budgeted, a budget amendment is not required.

Beginning in December of 2025, the payments will increase from $47,371 to $69,587. The purchase price of the Aljon Compactor is $1,056,452; however, the City will have a gain on the sale of the old compactor in the amount of $32,803.30 which will reduce the amount of funds borrowed to $1,023,649.

The City will be providing a property tax pledge as security for the loan. This will allow the City to issue this debt as long-term debt and lock-in the current bank qualified status, allowing the City to avoid any potential problems if it exceeds the bank qualification ceiling in the future.

The Council also approved a resolution to authorize the filing of a grant application with the West Central Texas Council of Government (WCTCOG) for grant funding for the Landfill bale.

Staff has solicited quotes for a recycling baler for the Landfill which will be opened Thursday, December 12, 2024. The City has taken the opportunity to file for grant money with The Recycling Partnership and WCTCOG. The WCTCOG grant requires a resolution authorizing Rebecca Bradley to act on behalf of the City regarding the grant application. The grant consists of $21,500, the application is due December 20, 2024, and the funds will be awarded January 22, 2025.

In other business Tuesday, the Council authorized the opt-in of the City of Brownwood in the settlement reached by the Texas Attorney General with Kroger. City Manager Emily Crawford will execute all documentation necessary to participate in the settlement, including execution of the Subdivision Participation Form.

The Office of the Texas Attorney General announced a proposed settlement with Kroger, who is paying the sum of $83 million (the “Settlement Amount”), to Texas and its political subdivisions. Of the Settlement Amount, the vast majority is earmarked for use by Texas and its political subdivisions to remediate and abate the impacts of the opioid crisis. At this time, the total amount of the payment to the City of Brownwood is undetermined – though estimates of $13,000 were mentioned during Tuesday’s meeting – since it will depend on the number of political subdivisions that opt-in. The deadline to opt in to the settlement is December 29, 2024. Please find attached the information sheet from the Texas Attorney General’s office as well as the participation forms for the settlement.

Also during Tuesday’s meeting, the following appointments or re appointments were approved by the Council:

Airport Board (2-year terms)

David Grimsely (served since 2017)
John Harkey (served since 2014)
Chad Massey (new)
John Robinson (alternate)

Audit Committee (3-year terms)

Chuck Boland (served since 2007)

Brownwood Municipal Development District (2-year terms, no more than 4 consecutive terms)

Liz Brown (filling unexpired term of Ashley Jaynes)

Building and Standards Commission (2-year terms)

Steve Almon (served since 2010)
Juan Ozona (served sine 2017)
Stehl Ratliff (served since 2019)

Civil Service Commission (3-year terms)

Josh McCullough (served since 2018)

Library Board (3-year terms)

Raul Garcia (served since 2022)
Eva Bush (served since 2022)

Parks Advisory Committee (3-year terms)

Dustin Larremore (served since 2023)
Jeff Yoder (served since 2016)

Planning and Zoning Commission (3-year terms)

Tarino Russell (served since 2022)
Don Morelock (served since 2020)

Unified Appeals Board (5-year terms)

Terry Lambert, Electrician (served since 2012)
Trey Bauchman, Alternate Electrician (served since 2012)

Zoning Board of Adjustment (3-year terms)

Don Bostick (served since 2018)
Clint Broughton (served since 2017)
McLane Moore (new)
Tyler Thompson (new alternate)

Items passed on the consent agenda were amendments to the 2023-24 fiscal year budget; an agreement with Health and Human Services on behalf of the Brownwood/Brown County Health Department to provide the Women, Infant and Children’s Nutritional program to the community; a renewal lease with August Pfluger for office space at City Hall; and a renewal lease with David Spiller for office space at Harvey House.

Following a 2 hour, 9 minute executive session involving discussions regarding poker rooms, no action was taken.