Consideration and Approval of Cooperative Contract:  Purchase of one (1) 906H2 Compact Wheel Loader on a National IPA cooperative purchase agreement with the City of Tucson-Bid#12077  (Approve purchase of 906H2 Compact Wheel Loader from Empire Machinery in the amount of $86,106.25).

Approve the purchase of one (1) 906H2 Compact Wheel Loader from Empire Machinery through a National IPA cooperative purchase agreement with the City of Tucson, AZ for the amount of $86,106.25 (tax and freight included).

The Solid Waste Residential Bulk Collection Program uses a loader daily to collect bulky waste from residents and load the waste and green waste into a rear load truck. The use of this loader has proven to decrease lost time due to injuries to our bulky crew and increase productivity in the delivery of services. The equipment warranty and services are supported locally in Flagstaff by Empire Machinery.

The Solid Waste Section has $100,000 budgeted in its Fleet Capital line item for the addition of this Loader in FY 16. Staff is requesting the use of contingency funds in FY 2015 for this purchase.

3) Provide sustainable and equitable public facilities, services, and infrastructure systems in an efficient and effective manner to serve all population areas and demographics.

None previously

Option 1) Accept the City of Tucson's- Bid #12077 cooperative purchase agreement with Empire Machinery with a 10 day delivery time.
Option 2) Accept the Quote from RDO Equipment on a National Powers Alliance cooperative Contract #060311-JDC with a delivery time of 8-10 weeks.
Option 3) Continue to use the existing JCB loader.

The Solid Waste Residential Bulk Collection Program uses a loader daily to collect bulky waste from residents and load the waste and green waste into a rear load truck. The addition of this loader to our operations has helped the program in meeting the ongoing need to provide effective tools for our staff to perform their jobs safely and without lost time injuries. The bulky crew has not had any lost time injuries since 2009 when we started using a loader in our operations and increased productivity by 43% in the delivery of services. The increase in volume is due to the continued growing demand from residents for bulk service. Since 2009, our annual bulk waste tonnage has increased from 2740 tons to 3919 tons.

The existing JCB Articulated loader was purchased for $58,777 in 2009 from Arizona Production Machinery & Supply of Phoenix, AZ.  We have incurred $79,664 in maintenance and repairs to date which is 134% of the purchase price. In June 2014, the JCB Articulated loader broke down and was not put back into service until February of 2015. In order to continue to keep up with the volume of bulky waste the Solid Waste Section rented a loader with a total cost of $32,577. The escalated and unexpected maintenance costs prompted the Solid Waste Section to propose the purchase of an additional loader in FY 16 which was approved by the Fleet Committee. Because  Arizona Production Machinery & Supply went out of business shortly after this purchase which left the city without a JCB vendor to provide support services, staff anticipates continued high maintenance costs and future rentals when the JCB loader breaks down.

The Solid Waste Section is faced with the need to purchase a new front line loader and place the JCB loader in a back up role rather than renting a unit when a back up is needed. We budgeted $100,000 for this purchase in FY 2016. Because the JCB loader has become unreliable as a front line unit mainly due to the lack of a reliable local company that can provide the service and support that we need; and with annual volumes increasing, we presented to the fleet committee our concerns about the JCB's ability to handle the work load and asked for approval to make this purchase this fiscal year using Solid Waste contingency funds in FY 2015. The Solid Waste fund has a total of $612,000 budgeted in contingency for FY2015 and there are no other expected draws from these funds.  The budgeted funds in FY 2016 will not be spent thus restoring the fund balance. Staff is requesting that we make this purchase in June; because the existing JCB loader cannot sustain the current work load which could add unnesecarry rental and maintenance expenses. Solid waste staff will revisit the equipment needs in 2016. We have a quote from Empire Machinery for $86,106.25 with a (5) year power train and hydraulic coverage warranty and a (10) day delivery time, and from RDO of Flagstaff for $82,679.12 with a (5) year power train warranty and a (8-10) week delivery time. Because of the proven history of local support, the added value provided by the additional hydraulic warranty and the (10) day delivery time, staff has recommended purchasing the 906H2 Compact Loader from Empire Machinery of Flagstaff.

Community benefits include continued consistent quality customer service at the lowest possible user fees.

Option 1. Accept the City of Tucson's-Bid #12077 cooperative purchase agreement with Empire Machinery with a 10 day delivery time.
Option 2. Accept the Quote from RDO Equipment on  a National Powers Alliance cooperative Contract #060311-JDC with a delivery time of 8-10 weeks.
Option 3. Continue to use the existing JCB loader.