City Council Meeting - FINAL

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9.G.

Meeting Date:	03/21/2023
Co-Submitter:	Evan Tyrrell
From:	Gregory Conlin, Public Works Manager - Fleet Services

Information

TITLE:

Consideration and Approval of Contract: Approve a Cooperative Purchase Contract with Balar Equipment in the amount of $329,050.56, plus applicable fees, for a Solid Waste collection truck.

STAFF RECOMMENDED ACTION:

Approve a Cooperative Purchase Contract with Balar Equipment in the amount of $329,050.56, plus applicable fees, for a Solid Waste collection truck; and
Authorize the City manager to execute the necessary documents.

Executive Summary:

The Solid Waste Residential Program utilizes a specialized rear loading refuse truck in the performance of the residential bulky waste collection program and select commercial customers (for a fee). This purchase will replace a 2012 Peterbilt that has a reconditioned rear load collection body and has exceeded its useful life or replace a 2008 American LaFrance with a Heil body. Both trucks are in poor condition with discontinued parts that hard to find and are consequently unreliable. Solid Waste and Fleet will re-evaluate the condition of these trucks once this replacement is received to determine which truck to retire.

Solid Waste did investigate the option of purchasing an EV collection truck and found that a comparable EV collection truck would have a smaller payload and shorter duty cycle. Further, the EV collection truck is estimated to cost no less than $700,000 before applicable taxes and take eighteen (18) to twenty four (24) months for delivery.

This purchase will take place on or after July 1, 2023, during the fiscal 2024 budget cycle. The need to secure City Council approval of the Cooperative Purchase Contract at this time is to reserve this Solid Waste collection truck that is currently in production. Without this approval, the estimated delivery on this type equipment in current market conditions is estimated at eighteen (18) months and the cost is estimated to increase as much as 25%.

This replacement request is included in fiscal 2024's budget (if approved by Council June, 2023) as well as Solid Waste's 5 year capital replacement plan. This vehicle will be available late June/early July as it was ordered by another municipality that canceled their order. We will not take delivery until after July 1, 2023. The equipment warranty and services are supported locally in Flagstaff by Velocity Truck Centers (Freightliner of Arizona).

Financial Impact:

These replacements were approved by the Fleet Management Committee (FMC) on February 14, 2023. The Solid Waste Collection Program has budget capacity planned for this purchase in fiscal 2023-24 budget in account 211-06-166-0641-0-4401.

Policy Impact:

None

Connection to PBB Priorities/Objectives, Carbon Neutrality Plan & Regional Plan:

Priority Based Budget Key Community Priorities and Objectives

-High Performing Governance by providing high quality internal and external customer service.
-Inclusive & Engaged Community by promoting environmental justice & the fair distribution of environmental benefits. A dependable solid waste collection program ensures trash and recycling services are carried out on a timely and efficient manner.
-Deliver outstanding services to residents through a healthy well maintained infrastructure system

Carbon Neutrality Plan

Actively manage and protect all environmental and natural resources while implementing sustainable building practices and alternative energy and transportation options.

Regional Plan

Policy PF.1.2. Allocate available public resources necessary for the City and County to prepare and adapt for natural and human-caused hazards so that all government operations support community resiliency.
Goal LU.7. Provide for public services and infrastructure.

Has There Been Previous Council Decision on This:

Options and Alternatives:

Approve the Cooperative Purchase Contract with Balar Equipment in the amount of $329,050.56, plus applicable fees for a Solid Waste collection truck; or
Not approve the Cooperative Purchase Contract and direct staff to conduct a separate procurement for the equipment. Staff does not recommend this action as it will delay the purchase.

Background/History:

The City will be using the Cooperative Purchase Contract #091219-THC that Heil Co. has with Sourcewell. Balar Equipment is an authorized dealer of Heil equipment as defined in the Sourcewell cooperative. Utilization of the Sourcewell cooperative will ensure better pricing for the equipment. Purchasing staff reviewed the Sourcewell cooperative and determined the contract to be current and relevant in scope to the vehicles being purchased.

Attachments
Contract 2023-109
Exhibit A
Exhibit B - Pricing
Exhibit B - Agency Contract