On Monday, April 24,2008, City Council approved the Exxon EPA Emissions Reduction Plan Agreement with the City of Billings.  The Exxon Mobile Refinery is required by the EPA to undertake a diesel fuel emissions reduction project in the Billings area in the amount of $300,000.  Exxon chose to fund an equipment replacement project with the Billings Park and Recreation Department.  The plan commits the City to purchase a new Refuse Packer Truck, two new Mini-Buses, and replace engines in two 16' Wing Mowers.  The agreement requires the City to destroy the old diesel engines, maintain the vehicles that are purchased, burn ultra-low sulfur diesel fuel, and include idling control equipment.  The Billings Parks, Recreation and Cemetery Board reviewed the agreement at a regularly-scheduled Board meeting on February 13, 2008.  As part of the agreement, the Park and Recreation Department is replacing its old Park Refuse Packer Truck.  The cost for the Refuse Packer Truck is estimated to range between $130,000 to $140,000.  The remainder of the $300,000 grant monies have already been used to purchase two new mini-buses for $119,706 and to replace diesel engines on two 16' wing mowers for $35,837.36.  The replacements were completed in September, 2009. 

The call for sealed bids was published in the Billings Times on November 12 and 19, 2009.  The bid opening was November 24, 2009. Solid Waste Systems of Spokane, WA, was the only bidder.  Solid Waste Systems provided two different bids for a Refuse Packer Truck. The reason for the two different bids is that the  EPA is requiring that all engine manufacturers end production of the 2007 EPA emissions standards engines by December 31, 2009, and switch to the production of engines that meet the 2010 EPA emissions standards.  Engine manufacturers currently have 2007 EPA emission standards engines in stock but may sell out of them by the middle of December.  Consequently, the vendor provided a bid for a Refuse Packer Truck with a 2010 EPA emission standards engine in the event that 2007 EPA emissions standards engines are no longer available when the order for this unit is placed.   The truck chassis, refuse packer, and all features are identical on both bids. The only difference is the two different engines.  The  bid amounts for both bids are as follows:

2010 EPA Emission Standards Refuse Packer	$139,094.00
2007 EPA Emission Standards Refuse Packer	$133,094.00

City Council may:

• Award the bid to Solid Waste Systems for the Refuse Packer with the 2007 EPA emissions standards engine contingent upon availability; or
• Award the bid to Solid Waste Systems for the Refuse Packer with the 2010 EPA emissions standards engine should the 2007 EPA emissions standards engine not be available; or
• Not award either bid to Solid Waste Systems.

The Refuse Packer Truck is being purchased through the the Exxon/Mobile Emissions Reduction Plan Agreement with grant funds from Exxon/Mobile at no cost to the City of Billings. The city has budgeted money to pay for the intial purchase and will be reimbursed through Exxon/Mobile.  The amount available from the Exxon Grant for the purchase of the Refuse Packer truck is $144,000.

Staff recommends that City Council approve the bid from Solid Waste Systems for a 2007 EPA Emissions Standards Refuse Packer Truck in the amount of $133,094. In the event a 2007 EPA Emissions Standards truck is no longer available at the time the order is placed, staff recommends that City Council also approve the bid for the 2010 EPA Emissions Standards Refuse Packer Truck in the amount of $139,094.

Approved By:           City Administrator_______________             City Attorney________________