REPORT TO THE CITY COUNCIL
FROM: BRIAN BARR, Director
General Services Department
BY: MIGUEL RAMIREZ, Senior Management Analyst
General Services Department
SUBJECT
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Approve the award of a Cooperative Purchase Agreement to Haaker Equipment Company Inc. of La Verne, California for the purchase of one Elgin CNG Broom Bear street sweeper in the amount of $628,670 for the Department of Public Utilities, Solid Waste Management Division
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RECOMMENDATION
Staff recommends Council approve the award of a Cooperative Purchase Agreement to Haaker Equipment Company Inc. of La Verne, California for the purchase of one Elgin CNG Broom Bear street sweeper in the amount of $628,670.
EXECUTIVE SUMMARY
The Department of Public Utilities is requesting approval to purchase one Elgin Broom Bear street sweeper as a replacement. The new unit will be used by the Solid Waste Management Division to complete final stage sweeping for Operation Clean Up. The General Services Department recommends this purchase based on the age and hours of the street sweeper identified for replacement. The new unit will be purchased through a competitively solicited cooperative procurement process administered by Sourcewell (a State of Minnesota local government agency).
BACKGROUND
The Department of Public Utilities, Solid Waste Management Division is responsible for sanitation programs such as Operation Clean Up and litter control for over 111,000 residential customers. The final stage of Operation Clean Up involves street sweeping to collect small debris that larger equipment cannot remove. The Solid Waste Division currently operates three sweepers; one unit has been identified for replacement as it has exceeded its cost-effective life span.
The City of Fresno has been using Elgin Broom Bear sweepers in the fleet for 24 years and has experienced success in the functionality and durability of this product. The new unit will be powered by Compressed Natural Gas, which has proven to be both economical and environmentally conscious. The equipped L9N “Near Zero” engines produce only one tenth of the allowable NOX greenhouse gas emissions and meet the latest EPA standards set in 2017 for this type of equipment.
This purchase complies with the City’s plan for the transition of the municipal fleet to zero-emission as required by the California Air Resource Board’s Advanced Clean Fleets regulation. Municipal fleet vehicles assigned to the Department of Public Utilities shall transition to zero-emission technologies utilizing the Milestone compliance pathway. Under the Milestone compliance pathway, internal combustion vehicles may still be purchased under the condition the department still meets its prescribed zero-emission transition percentage which is based upon its total fleet size. The Department of Public Utilities will continue to purchase light-duty zero-emission vehicles to ensure the transition percentage is met by the next compliance milestone in 2027. By 2030 the Department of Public Utilities is required to have converted 10% of equipment specifically within this vehicle class to zero-emission. Electric street sweepers are available, however internal testing has shown they cannot reliably complete the daily service needs for vehicle mileage and operational run time.
Due to the harsh environment street sweepers operate in, the replacement schedule is set at five years or 10,000 hours, whichever comes first. This schedule was revised in 2012, after a thorough analysis by the Fleet Management Division found that repair costs were outweighing acquisition costs at the less aggressive ten-year schedule. As street sweepers age past this five-year point, maintenance and repair costs rise significantly. The unit identified for replacement is currently beyond the recommended replacement schedule.
The street sweeper will be purchased through a competitively solicited cooperative procurement process administered by Sourcewell. The purchase contract will be awarded to Haaker Equipment Company Inc. who is the City of Fresno’s regional dealer for Elgin. The total purchase price of the Elgin street sweeper is $628,670; this price includes the Sourcewell discount applied to City purchases as well as delivery and sales tax at 8.35%. The Purchasing Division has approved this contract and recommends Council to approve.
ENVIRONMENTAL FINDING
By the definition provided in the California Environmental Quality Act (CEQA) Guidelines Section 15378, the award of this contract does not qualify as a “project” as defined by CEQA.
LOCAL PREFERENCE
Local preference was not applicable because this is a cooperative purchase.
FISCAL IMPACT
No general funds will be used to purchase this equipment. The Elgin CNG Broom Bear Street Sweeper will be financed through the Master Equipment Lease Purchase Agreement with the first payment estimated to be $70,907 expected in FY2027. The lease payment schedule will be included in the annual budget request for appropriations under the operations of the Department of Public Utilities, Solid Waste Management Division. The source of funding for this project is the Community Sanitation Fund, generated by the collection of customer user fees.
Attachments:
Cooperative Purchase Agreement
Elgin Sweeper Contract #093021-ELG
Original RFP
Proof of Publication
Proposal Evaluation
Comment and Review
Quote