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| Information |
| TITLE: |
| Consideration and Approval of Contract: Approve a Cooperative Purchase Contract for two (2) 2024 Residential Automated Side Load (ASL) Refuse Trucks from Freightliner of Arizona, LLC (Freightliner), with an option to purchase a third ASL Refuse Truck from Freightliner in FY 2023-24, in the total amount of $1,237,149.56, plus applicable fees and taxes. |
| STAFF RECOMMENDED ACTION: |
- Consider and Approve a Cooperative Purchase Contract with Freightliner in the total amount of $1,237,149.56, plus applicable fees and taxes, for:
a. The immediate purchase of two (2) 2024 ASL Refuse Trucks in the amount of $824,766.37, plus applicable fees and taxes; and
b. The option to purchase a third ASL Refuse Truck in the amount of $412,383.19, plus applicable fees and taxes, if the budgeted item is approved by City Council in the FY 2023-24 Budget.
- Authorize the City Manager to execute the necessary documents.
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| Executive Summary: |
The Solid Waste Residential Collection Program (Solid Waste) uses Automated Side Loader (ASL) refuse collection trucks in the daily collection of refuse and recyclable materials from residential and multi-family homes. The ASL refuse trucks have the largest capacity available (31 yards) and have advanced emissions that include robust after-treatment systems using diesel exhaust fluid to scrub the exhaust filters to eliminate soot and other contaminants. The estimated delivery is within six (6) months from approval to purchase.
Solid Waste investigated the possibility of purchasing an EV refuse collection vehicles and found that a comparable EV refuse collection vehicle would be smaller in capacity (27 yards) and is estimated to cost approximately $700,000 per truck before applicable taxes. Further, the estimated delivery would be 18 to 24 months from approval for purchase. The purchase of one (1) EV refuse collection vehicle (roughly 10% of the residential refuse fleet) would negatively impact the City's ability to provide consistent, reliable service.
Based on the current need to replace the aging residential refuse fleet, budgetary constraints, and unknown performance parameters associated with the range of EV refuse collection trucks in the Flagstaff elevation and cold climate, Solid Waste pursued the purchase of these three (3) ASL refuse trucks from Freightliner. However, it is the long term goal of Solid Waste to enter the EV arena when EV refuse collection vehicles are more proven and predictable. |
| Financial Impact: |
All three (3) of these replacement ASL refuse trucks are included in the 2023/2024 year 5-year capital replacement plan for Solid Waste. The purchase of the first two (2) ASL refuse trucks is included in the FY 2022-23 Budget approved by the City Council in June of 2022 for $640,000. However, the final price of the ASL refuse trucks is higher than originally budgeted due to supply chain shortages, and inflationary impacts, which will necessitate the possible reduction of other planned capital purchases this current fiscal year. A FY 2023-24 Budget request has been submitted for the third ASL refuse truck; and if approved as part of the City FY 2023-24 adopted Budget in June of 2023, the third ASL refuse truck would be purchased and delivered in July 2023.
The new ASL refuse trucks constitute the Solid Waste Collection Program's most critical replacement needs at this time. This purchases are budgeted in account number 211-06-166-0644-0-4401 and 211-06-166-0641-0-4401 (2024 purchase if approved). |
| Policy Impact: |
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| 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 resource 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: |
| Yes. On October 18, 2022, the City Council approved the purchase of one (1) ASL refuse truck from Rush Truck Center of Arizona. Unfortunately, the vender was unable to fulfill the transaction due to supply issues, necessitating a new effort to purchase the ASL refuse trucks. |
| Options and Alternatives: |
- Adopt the Cooperative Purchase Contract with Freightliner for the immediate purchase of two (2) ASL Refuse Trucks and the option to purchase a third ASL Refuse Truck, if approved in the FY 2023-24 Budget, in the total amount of $1,237,149.56, plus applicable fees and taxes, utilizing Arizona Cooperative Purchase Contract #CTR041810; or
- Direct Solid Waste to conduct a separate procurement for these necessary ASL Refuse Trucks. This action would delay the replacement of older equipment that are beyond the industry life standard.
- Do not proceed with purchase and ask staff to evaluate options available to fulfill fleet needs of Solid Waste.
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| Background/History: |
The Cooperative Purchase Contract will facilitate the replacement of two (and potentially a third) 2008 American LaFrance ASL trucks with Heil collection bodies. The City's replacement guideline for Solid Waste collection trucks is targeted at 10 years. Currently, one (1) of these trucks is out of service and is being used as a "parts" truck. American LaFrance truck company dissolved in 2012 and acquiring replacement parts for American LaFrance trucks is near impossible.
The opportunity to purchase the third ASL Refuse Truck was not originally available because it was committed to another government agency that recently canceled their order (Kayenta Unified School District). This is a unique chance to purchase another collection vehicle that would most likely cost more and take over a year for delivery.
The replacement request for these three (3) ASL trucks was approved by the City's Fleet Management Committees on August 9, 2022, and are included in fiscal 2023 and pending 2024 Budget.
The City will be using the Freightliner Cooperative Purchase Contract #CTR041810 with Arizona State to purchase these ASL Refuse Trucks. The vender is an authorized retailer of Freightliner equipment under that Arizona State cooperative. Utilization of the Arizona State cooperative will ensure better pricing for the equipment. Purchasing staff reviewed the Arizona State cooperative and determined the contract to be current and relevant in scope to the vehicles being purchased. |
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