REPORT TO THE CITY COUNCIL
FROM: BRIAN BARR, Director
General Services Department
BY: CLIFF TRAUGH, Administrative Manager
General Services Department
SUBJECT
Title
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 $586,677 for Department of Public Utilities, Solid Waste Management Division.
Body
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 $586,677.
EXECUTIVE SUMMARY
The Department of Public Utilities is requesting approval to purchase one Elgin Broom Bear street sweeper in the amount of $586,677. 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.
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 last stage of Operation Clean Up is street sweeping to follow and remove small debris otherwise missed by the larger equipment. Currently DPU is operating three units, the oldest now at the end of its’ useful life.
The City of Fresno has been using Elgin Broom Bear sweepers in the fleet for 23 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.
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 this 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 who is the City of Fresno’s regional dealer for Elgin, a subsidiary of Federal Signal Corporation. The price per unit is $586,677, this price includes the Sourcewell discount applied to City purchases as well as sales tax at 8.35%. The Purchasing Division has approved this contract and recommends Council to approve.
ENVIRONMENTAL FINDINGS
By the definition provided in the California Environmental Quality Act Guidelines Section 15378, the award of this contract does not qualify as a “project.”
LOCAL PREFERENCE
Local preference is not applicable because this is a cooperative purchase.
FISCAL IMPACT
No general funds will be used to purchase these items.
The Elgin CNG Broom Bear Street Sweeper will be financed through the Master Equipment Lease Purchase Agreement (MELPA) with the first payment estimated to be $67,035 expected in FY2025. The funding to cover the biannual lease payments will be included in the FY2025 adopted budget under the operations of the Department of Public Utilities. The source of funding for this project is the Community Sanitation Fund, generated by the collection of customer user fees.
Attachments:
Elgin Contract#093021-ELG
Original RFP
Proof of Publication
Proposal Opening Record
Proposal Evaluation
Comment and Review
Board Resolutions
Exhibit C Insurance Requirements