Consideration and Approval of Purchase Under National Joint Powers Alliance (NJPA) Contract :  Two (2) Elgin Broom Bear Twin Engine Street Sweepers (Approve purchase of two street sweepers).

Approve the purchase of two (2) Elgin Broom Bear Twin Engine Street Sweepers from Norwood Equipment of Phoenix, Arizona in the amount of $489,730.44, including sales tax.

This purchase will allow the Streets Section to maintain its current level of service in a cost effective manner.   

o The Streets Section has budgeted $560,000 in Fiscal Year 2015 for the purchase of two (2) Elgin Broom Bear Twin Engine Street Sweepers in account number 040-06-161-0611-6-4401
o The purchase of the Elgin Broom Bear Twin Engine Street Sweepers using the NJPA contract is $260,865.22 X 2 = $521,730.44
o The trade in value for each old street sweeper is $16,000 for a total of $32,000.
o By trading in 2 pieces of equipment the City will be able to purchase two (2) street sweepers for a net cost of $489,730.44 or $244,865.22 each including sales tax.

Maintain and deliver quality, reliable infrastructure

None previously except by adoption of the annual budget which included these projected expenditures.

o Option A: Accept the National Joint Power Alliance contract bid from Norwood Equipment as the lowest responsive bidder for the amount of $489,730.44 for the two (2) Elgin Broom Bear Twin Engine Street Sweepers and the trade in of two (2) Elgin Broom Bear Street Sweepers.

o Option B: Accept National Joint Powers Alliance contract bid from Norwood Equipment as the lowest responsive bidder for the amount of $244,865.22 for one (1) Elgin Broom Bear Twin Engine Street Sweeper, and trade in one (1) Elgin Broom Bear Street Sweeper.

o Option C: Conduct competitive bid process.

o Option D: Continue to use existing Street Sweepers.

Within the Streets fleet, much of the equipment has become aged and replacements have been deferred due to declining Highway User Revenue Funds (HURF). This fiscal year it was identified that the HURF fund balance had the capacity to fund some equipment replacement. At the top of Streets' needs are two (2) Elgin Broom Bear street sweepers. The Streets Section currently has two (2) Elgin Broom Bear street sweepers that meet the criteria for replacement. With this NJPA contract, Streets is able to address current street sweeper replacement  needs. The oldest street sweeper in the Streets fleet is 13 years old (2001), has 10,368 hours on it, and life-to-date cost is $194,550. The second oldest street sweeper is 10 years old (2004), has 10,799 hours on it, and the life-to-date cost is $187,660. The Fleet Committee has reviewed the request to replace the street sweepers and they voted unanimously in favor of replacing them. The vendor agreed  to accept trade-in of two pieces of equipment with a total value of $32,000 ($16,000 for each trade in sweeper), and provide two new Elgin Broom Bear street sweepers for a net cost to the City of $489,730.44.  

When preparing to purchase the replacement street sweepers, staff looked at the National Joint Powers Alliance contract and found pricing to be the most competitive for these street sweepers. The warranty on the equipment is fully extended "bumper to bumper" to any defects in workmanship and materials for two (2) years. The warranty does not cover items that are considered to be operating and maintenance items (tires, oil changes, brakes, etc). The City of Flagstaff has had a successful working relationship with Norwood Equipment of Phoenix for the last 13 years and the City fleet currently includes Norwood equipment. In this time, Fleet Maintenance staff and equipment operators have gained confidence in Norwood Equipment's abilities to provide warranty work, preventive maintenance and product support needed with this purchase.                                                                                                                       

With this purchase, the Streets Section will be able to replace two (2) out of the existing five (5) street sweepers with a twin engine in the fleet. This will allow staff to meet the expected level of service as these street sweepers will be more efficient in their operation and will have reduced ongoing maintenance costs.

This will help the Streets Section provide the quality and level of service the community expects.

Inform

• Option A: Accept National Joint Powers Alliance contract bid from Norwood Equipment as the lowest responsive bidder for the amount of $489,730.44 for the two (2) Elgin Broom Bear Twin Engine Street sweepers and the trade in of two (2) Elgin Broom bear Street Sweepers.

• Option B: Accept National Joint Powers Alliance contract bid from Norwood Equipment as the lowest responsible bidder for the amount of $244,865.22 for one (1) Elgin Broom Bear Twin Engine Street Sweeper and the trade in of one (1) Elgin Broom bear Street Sweeper.

• Option C: Conduct competitive bid process.

• Option D: Continue to use existing Elgin Broom Bear Street Sweepers.