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AGENDA ITEM REVIEW FORM |
3.E.
Special City Council Meeting
- Meeting Date:
- 05/31/2023
- Department Head:
- Eulogio Vera
- Submitted By:
- Manuel Hernandez, Project Manager, Public Works Department
Action Requested:
Motion
ITEM:
Discussion and possible action on any and all matters regarding a 12-month lease on a 2023 Peterbilt 520DS MX11 FLEET W/McNeilus 28yd Zero Radius ASL Solid Waste Side Loader Truck (Manuel Hernandez, Acting Assistant Director of Public Works)
SUMMARY:
Public Works is in urgent need of solid waste side loader vehicles. Currently, we have a fleet of 5 side loader solid waste trucks on 5 routes. The average age of our fleet is over 10 years old. Our Solid Waste Trucks average 800 to 1200 pickups per day. City Council approved the purchase of a new solid waste truck in 2021. The vehicle was ordered, however, we have not received it. The vendor has informed us that we should receive it this fiscal year. Our Solid Waste Division continues to struggle to keep up with the 800 to 1200 pickups per day per route. We need more solid waste trucks to continue providing trash collection services as our community continues to grow.
Less than two weeks ago Public Works learned that Rush Refuse Systems had a new solid waste truck that was available to lease. The Public Works Team immediately had a conference call with Bradley Taylor the Territory Manager with Rush Refuse Systems. Mr. Taylor confirmed that he had the aforementioned vehicle and that he could hold it while the City of San Luis approved the lease. The Department of Public Works and its Solid Waste division are seeking Council approval for a 12-month lease on a new 2023 Peterbilt 520DS MX11 FLEET W/McNeilus 28yd Zero Radius ASL Solid Waste Side Loader Truck. The monthly lease total is $8,200.00 ($98,400 for 12 months) with an option to purchase after the 12-month lease. The City of Yuma and the City of Somerton have also entered into long term lease agreements with Solid Waste Truck vendors similar. Public Works is also requesting authorization from the Mayor and City Council to waive the formal procurement code 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 warranties, the attorney supports staff in its calculation of the benefit outweighs the risks in the contract.
Less than two weeks ago Public Works learned that Rush Refuse Systems had a new solid waste truck that was available to lease. The Public Works Team immediately had a conference call with Bradley Taylor the Territory Manager with Rush Refuse Systems. Mr. Taylor confirmed that he had the aforementioned vehicle and that he could hold it while the City of San Luis approved the lease. The Department of Public Works and its Solid Waste division are seeking Council approval for a 12-month lease on a new 2023 Peterbilt 520DS MX11 FLEET W/McNeilus 28yd Zero Radius ASL Solid Waste Side Loader Truck. The monthly lease total is $8,200.00 ($98,400 for 12 months) with an option to purchase after the 12-month lease. The City of Yuma and the City of Somerton have also entered into long term lease agreements with Solid Waste Truck vendors similar. Public Works is also requesting authorization from the Mayor and City Council to waive the formal procurement code 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 warranties, the attorney supports staff in its calculation of the benefit outweighs the risks in the contract.
RECOMMENDATION / SUGGESTED MOTION:
I MOVE TO APPROVE THE LEASE ON THE 2023 PETERBILT 520DS MX11 FLEET W/MCNEILUS 28YD ZERO RADIUM ASL SOLID WASTE TRUCK NOT TO EXCEED $98,400.00 LEASE FOR 12 MONTHS.
Fiscal Impact
- IS THERE FISCAL IMPACT ASSOCIATED WITH THIS ITEM:
- Yes
- CITY/STATE/FEDERAL FUNDS:
- City
- TOTAL:
- $98,400.00 over the course of 12 months or $8,200.00 monthly
- BUDGETED AMOUNT:
- NA
- AVAILABLE AMOUNT TO TRANSFER:
- Yes
- ACCT NAME & GL#/REMAINING BALANCE BEFORE PURCHASE:
- Principal 320-321-82100 $62,223
FISCAL IMPACT STATEMENT (IF THIS IS A BUDGET TRANSFER, YOU MUST ATTACH THE BUDGET ADJUSTMENT FORM):
We have budget capacity in the Solid waste budget in the account 320-321-82100 in the amount $62,223 to cover lease expense through the end of this fiscal year ending June 30th, 2023 approximately $8,200. For FY 2023-2024 we will budget accordingly to cover the remaining months for this agreement.
Attachments
- Lease Purchase Proposal - City of San Luis, AZ - VIN 115798 and Unit# 955-1722 - 5-24-2023 (1)
- Schedule B - Long-Term Equipment (7 months or more)
- Master Lease Agreement 2015 SAMPLE