Consideration and Approval of Contract: Purchase of one (1) Residential Rear Load Refuse Truck from Short Equipment, Inc. in the amount of $158,775.37.

1. Approve the purchase of one (1) used Newway 20yd Cobra Rear Load Refuse Truck in the amount of $158,775.37 (page 1 of pricing quote) from Short Equipment, Inc.;
2. Authorize the City Manager to execute the necessary documents.

The Solid Waste Commercial Program uses bulky trucks daily to collect residential refuse and green waste materials.  Consistent reliability of these vehicles ensure the Solid Waste Collection Program can provide service to the City of Flagstaff facilities, residential homes and neighborhoods, publicly owned businesses and maintain our contractual obligations with NAU, FUSD and many others.  The purchase of this truck has been approved by the Fleet Management Committee. This truck will supplement the current aging trucks currently used for the bulky program and provide the service level the community expects. Additionally, this truck was built to our specifications and meets our current growth and collections needs in the smaller communities such as Rio Homes, Timber sky, and Presidio to name a few. This new truck will have far superior emission standards and fuel efficiencies making them more environmentally beneficial as well. The Equipment warranty and services are supported locally in Flagstaff by Velocity (Freightliner) Truck Centers and the City of Flagstaff Fleet Department.

The Solid Waste Collection Program has $348,770 budget capacity in the Fleet Capital line item for the replacement of collection trucks in FY 2020-21 in account 211-06-166-0641-0-4401. The Section is planning on utilizing $158,775.37 of those funds for the purchase of one (1) truck.

Connection to Current Council Goals: Take meaningful climate change action through the use of collection vehicles with lower emission and greater fuel efficiency. Actively manage and protect all environmental and natural resources by collecting trash and recyclables, which ensures waste is handled in an environmentally safe manner. Bulky Trash Collection reduces potential urban wildfire risk and illegal dumping in the forest.

Priority Based Budgeting Council Results and Definitions: High Performing Governance by providing high quality internal and external customer service. Inclusive & Engaged Community by promoting environmental justice & the fair distribution of environmental benefits. While this is an addition to the fleet, Solid Waste does not have any residential bulky trucks that have reduced emissions. This vehicle will reduce the environmental impact and help reduce the carbon footprint.

No. This truck is budgeted FY 2020-2021 and is an addition to the current Solid Waste Fleet.

1. Approve a contract with Short Equipment, Inc. for the purchase of one (1) used Residential Rear Load Refuse Truck in the amount of $158,775.37.
2. Direct Staff to conduct a competitive bid process for a new, custom-built truck.
3. Rent similar equipment every year at much greater expense over time ($5,500/mo.).

During the annual budget process for FY20-21, Solid Waste was approved to rent a bulky waste collection vehicle. After a careful look at other viable options, the purchase of this used bulky truck is the recommended prudent action to be taken. The Solid Waste Collection Program attempted to utilize contractors on a part-time basis first to supplement the growing demands for the bulky program. After a two-week trial period it was found that the contractors were not providing the high level of service that we commit to our stakeholders and the cost was very high (approximately $1050.00 /wk). The Solid Waste Collection Program also attempted to utilize the Waste Management Transfer Station in an effort to reduce load cycle times (route distances) and found that this option was just as costly and did not effectively reduce route cycle times. The Solid Waste Collection Program then reached out to all the vendors to find the exact equipment that could fill the need for additional bulky waste collection capacity and service the new subdivisions with hard to service clearances. One vendor was willing to take on the project. This truck was custom-built to the Solid Waste Collection Program’s specifications and meets the needs perfectly. After a short rental trial (7mo.), the decision was made to request a purchase of this equipment in order to reduce the overall cost of this program. The expected life of a rear loader truck is approximately 12 to 14 years, which, if the rental was continued would result in an overall cost of approximately $792,000 for 12 years.

Purchasing this rear load truck will cost $158,775.37, resulting in an estimated overall cost saving of approximately $600,000 over the life of the truck.  All proposed fleet purchases were approved by the Fleet Management Committee. Solid Waste vehicles under consideration for fiscal year 2019-2020 were appropriately planned and budgeted. Due to the nature of this purchase, coupled with the initial custom build and short-term rental trial period, it was determined to be a sole source because of the utilized rental period and custom design which was built to suit the City's Solid Waste needs.

The City of Flagstaff and Fleet Services have long working relationship with Short Equipment, Inc. in Phoenix, and they will be able to provide warranty and post warranty repairs, if needed. There are also additional local resources, including, mobile mechanics to support the Section which is a direct connection to supporting Council's goal of providing "sustainable and equitable" services to our population. Fleet Services will also be authorized to perform warranty repair on these refuse bodies and be eligible for reimbursement.

This truck was built to the Solid Waste Collection Program's specifications and used first as a trial rental truck. Because this truck was first used as a rental, the Solid Waste Collection Program was able to negotiate a greatly reduced purchase price well below the current market price on a sole source new refuse rear loader.

Community benefits include continued consistent quality Commercial trash and recycle collection service at the lowest possible user fees. In addition, having modern, clean, and efficient collection equipment with the most advanced emission control and fuel saving technology in our fleet portrays a positive image to the community we serve

Bulky Solid Waste Collection is a significant source of community interest in the importance of having the tools to perform the duties as obligated.  Community stakeholders such as NAU, FUSD, residents, and the City's own infrastructure, rely on the Solid Waste Collection Program to deliver safe and timely collection of trash and recyclables in the community.