9.A.
City Council Meeting - FINAL
- Meeting Date:
- 03/01/2016
- From:
- Mike Gallegos, Collections Manager
Information
TITLE:
Consideration and Approval of Cooperative Contract: Purchase of two (2) Residential Side Load Refuse Trucks and two (2) Commercial Front Load Refuse Trucks from Rush Truck Center through the Cooperative Purchase Agreement with the City Of Tempe, Contract# T15-097-01.
RECOMMENDED ACTION:
Approve the purchase of two (2) 2017 Peterbilt 320 Cab and Chassis including Scorpion Side Load Bodies in the amount of $264,268.64 each, and two (2) 2017 Peterbilt 320 Cab and Chassis including McNeilus Front Load Bodies in the amount of $258,996.37 each, for a total purchase amount of $1,046,530.02.
Executive Summary:
The Solid Waste Residential and Commercial Programs use these trucks daily to collect residential and commercial refuse and recyclable materials. The purchase of these trucks has been approved by the Fleet Management Committee; the trucks that are being replaced meet all of the committee's replacement criteria. The Equipment warranty and services are supported locally in Flagstaff by Rush Peterbilt.
Financial Impact:
The Solid Waste Residential and Commercial Programs have $1,040,000 budgeted in the Fleet Capital line item for the replacement of these trucks in FY 2016 in accounts 211-06-166-0641-0-4401, 211-06-166-0643-0-4401 and 211-06-166-0646-0-4401. The remaining balance for the purchase ($6,530.02) will come from cost savings ($30,962) from the purchase of the Bin Maintenance vehicle (originally budgeted at $75,000, account 211-06-166-0645-0-4401).
Connection to Council Goal and/or Regional Plan:
COUNCIL GOALS
3) Provide sustainable and equitable public facilities, services, and infrastructure systems in an efficient and effective manner to serve all population areas and demographics
Has There Been Previous Council Decision on This:
None previously.
Options and Alternatives:
Option 1. Approve the City of Tempe's Cooperative purchase agreement (#T15-097-01) with Rush Truck Center, Phoenix, AZ for the purchase of two (2) Residential Side Loader Refuse Trucks and two (2) Commercial Front Loader Refuse Trucks.
Option 2. Conduct our own competitive bid process.
Option 2. Conduct our own competitive bid process.
Background/History:
All of the trucks being considered for replacement meet the Fleet Management criteria for replacement in regard to age, mileage or hours used, and life to date costs, and were approved by the Fleet Management Committee for replacement.
This year, it was determined that these replacements were necessary due to the increased downtime, anticipated repair and maintenance costs incurred by continuing to operate the equipment.
The Solid Waste Section budgeted $1,040,000 in Fiscal Year 2016 for the purchase of four (4) Solid Waste Collection trucks in our Residential and Commercial Programs.
One of Solid Waste’s considerations in forming the bid criteria was to upgrade the cab and chassis specifications in order to acquire more durable equipment and have a platform on which to refurbish entire trucks, thereby extending their useful working life at a fraction of the cost. This would also maintain greater trade in value at the end of the equipment’s useful life.
This year, it was determined that these replacements were necessary due to the increased downtime, anticipated repair and maintenance costs incurred by continuing to operate the equipment.
The Solid Waste Section budgeted $1,040,000 in Fiscal Year 2016 for the purchase of four (4) Solid Waste Collection trucks in our Residential and Commercial Programs.
One of Solid Waste’s considerations in forming the bid criteria was to upgrade the cab and chassis specifications in order to acquire more durable equipment and have a platform on which to refurbish entire trucks, thereby extending their useful working life at a fraction of the cost. This would also maintain greater trade in value at the end of the equipment’s useful life.
Key Considerations:
| The trucks being replaced have met the Fleet replacement criteria in terms of years, mileage, life to date costs and repairs needed to continue its useful life. These trucks were presented to the Fleet committee and approved for replacement with funds from Solid Waste's fleet capital line item.The Solid Waste Section has utilized various methods for equipment acquisition to minimize cost, improve longevity and manage fleet reductions, saving budget dollars while improving the quality and performance of its fleet. |
Expanded Financial Considerations:
Increased costs of equipment acquisition have made intergovernmental cooperative purchase agreements a viable alternative to the bid process when the desired equipment can be obtained. Volume pricing, expedited build times and delivery provide value to the purchaser. We are utilizing a cooperative agreement pursuant to Article 20 of the City of Flagstaff Procurement Manual.
The Solid Waste Residential and Commercial Programs have $1,040,000 budgeted in the Fleet Capital line items for the replacement of these trucks in FY 2016. The balance of $6,530.02 will come from $30,962 savings of the $75,000 budgeted for the purchase of a Bin Maintenance truck .
The trucks being replaced have met the Fleet replacement criteria in terms of years, mileage, life to date costs and repairs needed to continue their useful life. These trucks were presented to the Fleet committee and approved for replacement with funds from Solid Waste's fleet capital line item. The Solid Waste Section has utilized various methods for equipment acquisition to minimize cost, improve longevity and manage fleet reductions, saving budget dollars while improving the quality and performance of it's fleet.
The Solid Waste Residential and Commercial Programs have $1,040,000 budgeted in the Fleet Capital line items for the replacement of these trucks in FY 2016. The balance of $6,530.02 will come from $30,962 savings of the $75,000 budgeted for the purchase of a Bin Maintenance truck .
The trucks being replaced have met the Fleet replacement criteria in terms of years, mileage, life to date costs and repairs needed to continue their useful life. These trucks were presented to the Fleet committee and approved for replacement with funds from Solid Waste's fleet capital line item. The Solid Waste Section has utilized various methods for equipment acquisition to minimize cost, improve longevity and manage fleet reductions, saving budget dollars while improving the quality and performance of it's fleet.
Community Benefits and Considerations:
Community benefits include continued consistent quality Residential and Commercial trash and recycle collections service at the lowest possible user fees.
Community Involvement:
Inform
Expanded Options and Alternatives:
Option 1. Accept the City of Tempe's Cooperative purchase agreement (#T15-097-01) with Rush Truck Center, Phoenix, AZ for the purchase of two (2) Residential Side Loader Refuse Trucks and two (2) Commercial Front Loader Refuse Trucks.
Option 2. Conduct our own competitive bid process.
Option 2. Conduct our own competitive bid process.