City Council Meeting - FINAL


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  5.B.       
Meeting Date: 09/01/2020  
Co-Submitter: Andy Bertelsen From: Matthew Morales, Project Manager

Information
TITLE:
Consideration and Approval of Contract:  Purchase of one (1) 2020 Caterpillar 730 EJ Articulated Haul Truck (Haul Truck).
STAFF RECOMMENDED ACTION:
  1. Approve the  purchase of one (1) Caterpillar 730 EJ Articulated Haul Truck (Haul Truck) in the amount of $573,585.00 (Page 2 of CAT 730 Quote) from Empire Machinery/Caterpillar Inc.; and
  2. Authorize the City Manager to execute the necessary documents.
Executive Summary:
Cinder Lake Landfill (landfill) is required to cover trash cells on a daily basis. The landfill uses an annual average of 62,000 tons of cover material (soil and alternative cover). Historically, the facility soil pits had readily-available sources of sand that were excavated and transported with a 2004 Caterpillar 627G Wheeled Tractor Scraper (Scraper). However, the remaining portions of sand are nearly exhausted, thereby exposing the layers of bedrock (weathered basalt). The landfill mining operation proposes to excavate with an existing dozer (CAT D8) and wheeled loader (CAT 966). Subsequently, it will be essential to integrate an appropriately sized truck to transport material.

Caterpillar is the only manufacturer that offers a Haul Truck with an ejector bed. Compared to a typical dump bed, the ejector has a decreased risk of roll-over on precarious slopes. The ejector bed is also unique because it allows an operator to regulate the spread of cover with increased control than a dump bed. The Haul Truck has a rated payload of 30 tons (22 cubic yards). 

The Haul Truck abides to the codes set forth by the Environmental Protection Agency and provides increased fuel efficiency and productivity compared to the existing haul machinery.

The proposed purchase of the Truck will be made through the City of Tucson Local Government Purchasing Cooperative Contract (Contract Number 161534-01) with Caterpillar, Inc. Empire Machinery is an authorized dealer of Caterpillar, Inc. products and services in northern Arizona. The City of Flagstaff seeks to utilize the terms of the Cooperative Purchase Contract for purposes of this purchase.
Financial Impact:
The proposed purchase was approved by the Fleet Committee (see Fleet Committee form) and the Budget Committee (see Recession Plan form). The Landfill has $600,000 budgeted in fleet capital account (211-06-165-0631-0-4402) for the current fiscal year.
Policy Impact:
None
Connection to PBB Key Community Priorities/Objectives & Regional Plan:
Connection to Current Council Goals:
  • Take meaningful climate change action through the use of more-efficient processes with lower emission and greater fuel efficiency.
  • Actively manage and protect all environmental and natural resources by covering trash with enough material to ensure waste is handled in an environmentally safe manner.
Priority Based Budgeting Council Results and Definitions:
  • 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. Through the implementation of more efficient machinery, Cinder Lake Landfill is able to maintain reasonable prices for essential services (i.e. recycling and household hazardous waste disposal) for City and County residents.
Has There Been Previous Council Decision on This:
There have been no previous decisions on this item.
Options and Alternatives:
Option 1. Approve cooperative purchase contract (161534-01) with Empire Machinery/Caterpillar Inc. for the purchase of one (1) Caterpillar 730 EJ Articulated Haul Truck for $573,585.00.

Option 2. Approve cooperative purchase contract (161534-01) with Empire Machinery/Caterpillar Inc. for the purchase of one (1) Caterpillar 730 EJ Articulated Haul Truck for $573,585.00 (while Empire Machinery/Caterpillar Inc. has offered a trade-in credit of $75,000 for the 2004 627G Scraper, staff has determined that the 2004 627G has far greater value at the landfill than the credit amount).

Option 3. Conduct a procurement process to purchase the necessary equipment.
Background/History:
For Fiscal Year 2020-2021, staff proposed rebuilding of the Scraper in its 5-year plan. However, with the increased exposure of bedrock, staff re-evaluated the continued use of the Scraper as piece of frontline equipment. The Haul Truck is better suited to meet the facility's need to haul heavy volumes of cover material.  The Scraper would continue to be used as a backup to the Haul Truck and when a third-party contractor is hired to excavate and process future cells.  The contractor will create stockpiles of sand when excavating and the Scraper is the ideal piece of equipment to transport this sand.  The Fleet Management Committee agreed and approved purchasing the Haul Truck in lieu of rebuilding the Scraper (see approval).

Procurement was done through a cooperative contract with Empire Machinery through the City of Tucson Procurement department, Contract #161534-01. Procurement staff drafted and incorporated the City of Flagstaff Cooperative contract for this cooperative purchase.
Key Considerations:
Federal and state rules require landfills to cover trash with earthen material on a daily basis. The Scraper is considered ideal for mining sandy soil. However, it is no longer a practical tool for extracting the outcroppings of rock that are now exposed in the mining pits at Cinder Lake Landfill. The wear and tear on the Scraper is leading to unscheduled down time. The Haul Truck has one engine (the Scraper has two engines), which meets or exceeds EPA standards for emissions.  
Expanded Financial Considerations:
Increased costs of equipment acquisition have made intergovernmental cooperative purchase contracts a viable alternative to the bid process when the desired equipment can be obtained. Volume pricing, expedited build times and delivery provide value to the purchaser. The City is utilizing a cooperative purchase contract pursuant to Article 20 of the City of Flagstaff Procurement Manual.

Caterpillar provides a 7 year, 7,000 hour (whichever comes first) warranty on the powertrain, hydraulics, and technology.
Community Benefits and Considerations:
Community benefits are realized through the aesthetic qualities that residents expect when they dispose of trash at the landfill. The community depends on the landfill to maintain high standards of environmental compliance. Using more efficient means operating can provide the lowest possible dump fees. In addition, having modern, clean and efficient landfill equipment with the most advanced emission control and fuel saving technology in our fleet portrays a positive image to the community we serve.
Community Involvement:
N/A
Expanded Options and Alternatives:
N/A
Attachments
Haul Truck Powerpoint
COF cooperative contract
Attachment B IPA Contract-w-Tucson
Attachment B Amended CAT-Tucson IPA
Attachment A Haul Truck-Quote
CAT 627G Rebuild Quote
Recession Plan Approval
Haul Truck-Quote-Trade-in
Fleet Committee Approval


    

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