Discussion and possible action on any and all matters regarding a 12-month lease agreement on a 2024 Peterbilt Solid Waste Side Loader Truck with Rush Refuse Systems.  (Manuel Hernandez, Acting Assistant Director of Public Works)

The Department of Public Works and its Solid Waste Division are seeking the Mayor and City Council's approval of a 12-month lease agreement on a new 2024 Peterbilt Solid Waste Side Loader Truck with Rush Refuse Systems.  The monthly lease total is $8,400.00 for a minimum term of 12 months ($100,800.00 for 12 months).  Rush Refuse Systems is offering the option to purchase this vehicle after the 12-month lease.  Additionally, 50% of the lease would be applied as a credit ($50,400.00) towards the purchase if the City of San Luis opts to purchase this vehicle.

New solid waste trucks are difficult to source.  Public Works was offered this vehicle due to our good-standing relationship with the vendor.  Public Works is currently leasing a 2023 Side Loader with Rush Refuse Systems that was approved on May 31, 2023.  As per our Fleet Services and Solid Waste Division, they are having good experience with Rush Refuse System's service and the vehicle.  Public Works is also requesting authorization from the Mayor and City Council to waive the formal procurement procedures as authorized under Section 3.05.010 (F) Procedures Waived of the City Code.

The City Attorney notes that the lease is heavily weighted in favor of the vendor.  However, given the long delays in obtaining these specialized trucks and the trucks out of commission with repairs, and it is for a new 2023 truck from a manufacturer (Peterbilt) with a good reputation, and the proposal has a promise for separate component warranties.  The City Attorney supports staff in its calculation of the benefits outweighing the risks.