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AGENDA ITEM REVIEW FORM
7.B.
Regular City Council Meeting
Meeting Date:
09/23/2026
Department Head:
Manuel Hernandez
Submitted By:
Manuel Hernandez, Assistant Director of Public Works, Public Works Department
Action Requested:
Motion

ITEM:

Discussion and possible action to approve a 12-month lease agreement with Rush Refuse Systems for a 2026 Peterbilt/McNeilus Automated Side Loader Refuse Truck. (Manuel Hernandez, Assistant Director of Public Works)

SUMMARY:

Public Works is requesting approval from the Mayor and Council for a 12-month lease agreement with Rush Refuse Systems for a new 2026 Peterbilt/McNeilus Automated Side Loader Refuse Truck. The lease payment is $9,300 per month, for a total lease cost of $111,600. At the end of the term, 50% of the lease payments ($55,800) will be applied toward the purchase, reducing the purchase price to $354,200. Public Works will request this funding in the FY28 Budget. The total cost to the City for the lease and purchase will be $465,800. Public Works also requested pricing from Haaker Refuse (Rush Refuse Systems and Haaker Refuse are the two authorized dealers serving Arizona for new Peterbilt/McNeilus refuse trucks). Haaker quoted $481,460 for a similar vehicle, not including sales tax, DMV fees, or federal excise tax, the Rush proposal saves the City approximately $15,660. This lease to own method was used for the City's last two solid waste trucks and has proven cost effective.

Rush Refuse Systems has provided consistent customer service, and the City's Peterbilt/McNeilus refuse trucks have demonstrated reliable performance. The proposed vehicle also includes extended warranties for the engine, emissions system, and transmission. This lease will replace Unit No. 3270, a 2004 Autocar/Scorpion refuse truck that is 22 years old and has incurred substantial maintenance and repair costs. Replacing this vehicle is part of the City's Refuse Truck Replacement Schedule (part of the City's CIP Plan) and will improve reliability while reducing maintenance costs. Public Works plans to continue replacing one refuse truck each year, leasing a new vehicle and purchasing it the following fiscal year. Public Works expects to return in FY28 to request a lease replacing Unit No. 0487, another 2004 Autocar/Scorpion. This approach maintains a more reliable fleet and spreads the cost over several fiscal years.

Public Works is requesting approval of the 12-month lease agreement and authorization to waive the formal procurement procedures for good cause in accordance with Section 3.05.010(F), Procedures Waived, of the City Code.

RECOMMENDATION / SUGGESTED MOTION:

I MOVE TO APPROVE A 12-MONTH LEASE AGREEMENT WITH RUSH REFUSE SYSTEMS FOR A 2026 PETERBILT MCNEILUS AUTOMATED SIDE LOADER REFUSE TRUCK AND WAIVE  FORMAL PROCUREMENT PROCEDURES.

Fiscal Impact

IS THERE FISCAL IMPACT ASSOCIATED WITH THIS ITEM:
Yes
CITY/STATE/FEDERAL FUNDS:
City
TOTAL:
$111,600.00
BUDGETED AMOUNT:
$120,500.00
AVAILABLE AMOUNT TO TRANSFER:
$120,458.49
ACCT NAME & GL#/REMAINING BALANCE BEFORE PURCHASE:
Lease Payments - Principal & Interest 320-321-80015/$120,458.49

FISCAL IMPACT STATEMENT (IF THIS IS A BUDGET TRANSFER, YOU MUST ATTACH THE BUDGET ADJUSTMENT FORM):

Funding is available in the FY27 Solid Waste Fund budget, Account 320-321-80015, Lease Payments – Principal & Interest. Lease payments will begin upon delivery of the vehicle, and any payments extending beyond June 30, 2027 will need to be budgeted in FY28. Public Works will request $354,200 in the FY28 Budget to exercise the purchase option at the end of the lease term. This lease is part of the City's Capital Improvement Program (CIP) and Refuse Vehicle Replacement Program to systematically replace aging refuse trucks and maintain a reliable fleet.

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