City Council Meeting - FINAL

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Meeting Date: 09/07/2021  
Co-Submitter: Andy Bertelsen

Consideration and Approval of Cooperative Purchasing Contract:  Purchase of one (1) Commercial Front Load Refuse Truck and one (1) Residential Side Load Refuse Truck from Rush Truck Center Arizona through the Houston-Galveston Area Council (H-GAC) Cooperative Purchase Agreement, Contract No. HT06-20.
  1. Approve the purchase of one (1) Commercial Front Load Refuse Truck in the amount of $307,615.19, and one (1) Residential Side Load Refuse Truck in the amount of $325,165.21, for a total purchase amount of $632,780.40 (page 1 of pricing worksheet) from Rush Truck Center Arizona through the Houston-Galveston Area Council Cooperative Purchasing Agreement, Contract No. HT06-20; and
  2. Authorize the City Manager to execute the necessary documents.
Executive Summary:
The Solid Waste Collection Program uses these trucks daily to collect commercial and residential refuse and recyclable materials.  Consistent reliability of these vehicles ensure the Solid Waste Collection Program can provide services to the City of Flagstaff facilities, privately owned businesses and maintain our contractual obligations with Northern Arizona University, Flagstaff Unified School District and residents of the City of Flagstaff.  The purchase of these trucks has been approved by the Fleet Management Committee; the trucks that are being replaced meet the City's Fleet Management replacement criteria. These new trucks will be replacing vehicles that are 12 years old.  Additionally, the manufacturer of the chassis in the older trucks is no longer in operation which causes the parts to be extremely difficult and expensive to source, affecting the reliability of the trucks. The combined costs of maintenance for these two vehicles was $81,374 last year, and a combined lifetime maintenance cost of $785,216. The new trucks will have far superior emission standards and fuel efficiencies making them more environmentally beneficial. The Equipment warranty and services are supported locally in Flagstaff by Rush (Peterbilt) Truck Centers Arizona.
Financial Impact:
The Solid Waste Collection Program has $1,521,267.00 remaining budget capacity in the Fleet Capital line item for the replacement of collection trucks in FY 2019-20 in accounts 211-06-166-0641-0-4401, 211-06-166-0643-0-4401 and 211-06-166-0644-0-4401. The Section is planning on utilizing $632,780.40 of those funds for the purchase of two (2) vehicles.
Policy Impact:
Connection to PBB Key Community Priorities/Objectives & Regional Plan:
High Performing Governance
Serve the public by providing high quality customer service.
Has There Been Previous Council Decision on This:
No. These trucks are budgeted for Fiscal Year 2021-2022 and are replacement trucks for Solid Waste Collection Operations. The old trucks will be auctioned off or used for spare parts and the manufacturer of the chassis is no longer in business.
Options and Alternatives:
Option 1. Approve the Cooperative Purchase Contract (2022-30) with Rush Truck Center Arizona for the purchase of one (1) Commercial Side Load Refuse Truck and one (1) Residential Front Loader Refuse Truck.

Option 2. The City conducts its own competitive bid process.

Option 3. Attempt to acquire used parts and service resources (some parts for outdated equipment no longer available on the market) from independent vendors and internal resources to keep our aging equipment in service.
The purchase of these proposed collection vehicles was approved in the Fiscal Year 2021-2022 equipment replacement budget and provide for the sustainable operation of Solid Waste Collection Program services. All of the trucks being considered for replacement meet the City's Fleet Management criteria for replacement for mileage/hours used and life to date costs. All proposed fleet purchases were approved by the Fleet Management Committee for replacement. Access to parts and diagnostic support has become more challenging for the equipment to be replaced and the Fleet Management Committee used the appropriate criteria such as life to date repair costs to score and approve these replacement requests. Solid Waste vehicles under consideration for Fiscal Year 2021-2022 were appropriately planned and budgeted. City Procurement has purchased Solid Waste vehicles through the Houston-Galveston Area Council Cooperative Purchasing Agreement in the past. Solid Waste is again choosing to utilize this cooperative purchasing agreement ensuring the City of Flagstaff a fiscally sound purchase.

Purchasing staff reviewed the agency contract to confirm validity of terms and similar scoped equipment. The contract from the Houston-Galveston Area Council is fully validated to conform with City procurement rules. Purchasing staff worked with the vendor to develop the draft City of Flagstaff Cooperative Purchase Contract attached herein.
Key Considerations:
A significant portion of the Solid Waste Section's fleet are Peterbilt chassis. The City of Flagstaff and Fleet Services have had a long working relationship with Rush (Peterbilt) Truck Centers here in Flagstaff and they will be able to provide warranty and post warranty repairs, if needed. Having additional local resources to support the Section is a direct connection to supporting Council's goal of providing "sustainable and equitable" services to our population. Fleet Services will also be authorized to perform warranty repair on these refuse bodies and be eligible for reimbursement.
Expanded Financial Considerations:
Increased costs of equipment acquisition have made intergovernmental cooperative purchase contracts a viable alternative to the formal bidding 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 purchasing contract pursuant to Article 20 of the City of Flagstaff Procurement Manual.
Community Benefits and Considerations:
Community benefits include continued consistent quality Commercial trash and recycle collection service at the lowest possible user fees. In addition, having modern, clean and efficient collection 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:
Solid Waste collection is a significant source of community interest in the importance of having the tools to perform the duties as obligated.  Community stakeholders such as Northern Arizona University, Flagstaff Unified School District, the City's own infrastructure, and residents rely on the Solid Waste Collection Program to deliver safe and timely collection of trash and recyclables in the community.
Expanded Options and Alternatives:
COF contract 2022-30
Exhibit A1
Exhibit A2
Exhibit B - HGAC contract
FEL Schematic


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