REPORT TO THE CITY COUNCIL
FROM: BRIAN BARR, Director
General Services Department
BY: MIGUEL RAMIREZ, Senior Management Analyst
General Services Department
SUBJECT
Title
Approve the Award of a Cooperative Purchase Agreement to PB Loader Corporation of Fresno, California, for the purchase of two Peterbilt 567 dump trucks in the amount of $691,208 for the Department of Public Utilities and the Department of Public Works
Body
RECOMMENDATION
Staff recommends Council approve the Award of a Cooperative Purchase Agreement to PB Loader Corporation of Fresno, California, for the purchase of two Peterbilt 567 dump trucks in the amount of $691,208.
EXECUTIVE SUMMARY
The Department of Public Utilities, Wastewater Management Division and Department of Public Works, Landscape Maintenance Division are requesting approval to purchase two Peterbilt 567 dump trucks for the total amount of $691,208. The Wastewater Management Division looks to purchase the new unit as an addition to be utilized by the Collection System Maintenance Section, which is responsible for maintaining the City’s network of sewer infrastructure. The new dump truck will assist crews with the transport of materials, tools, and equipment necessary for routine maintenance of sewer mainlines, manholes, and lift stations. Additionally, the new unit for the Landscape Maintenance Division will be purchased as a replacement for a truck that has exceeded its useful life. The current truck plays a key role in supporting field operations including the removal and transport of heavy debris, soil, and green waste resulting from citywide landscape maintenance. The new units 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, Wastewater Management Division is responsible for the collection and treatment of wastewater produced by the City of Fresno. This is accomplished through the operation and maintenance of the Wastewater Treatment Plant as well as the collection system supplying it. The maintenance of the sewer collection system is performed by the Collection System Maintenance Section which is divided into three specialized teams focused on mainline, manhole, and lift station repairs. Currently, limited equipment availability restricts the workgroup’s ability to perform multiple mainline repairs at once. The addition of the new Peterbilt 567 dump truck will expand the Section’s operational capacity, allowing repairs to be assigned based on priority rather than equipment availability. This will significantly improve response times and ensure continued maintenance of the City’s essential sewer infrastructure.
The Department of Public Works, Landscape Maintenance Division is responsible for maintaining 300 miles of City median islands, 11 pedestrian walking trails, and over 200,000 trees. Along with planting trees and maintaining green space, the Landscape team is tasked with clearing debris, moving dirt, and hauling off tree trimmings. These operations require vehicles and equipment capable of handling significant loads and operating across various terrains throughout the City. The dump truck currently assigned to this work is well beyond its intended service life, it now requires frequent repairs reducing its reliability. The new Peterbilt 567 dump truck will provide a dependable and durable replacement, ensuring crews have the equipment needed to perform their duties effectively and without unnecessary delays.
The two Peterbilt 567 dump trucks will be built utilizing a new 17 foot body supplied by PB Loader. The new dump trucks will be built to a specification similar to existing units, updated with the latest technology to offer superior maneuverability, visibility, and performance. The new units will be compliant with the applicable US 2010 emissions standard, while providing improved fuel economy and power.
This purchase complies with the City’s plan for the transition of the municipal fleet to zero-emission as required by 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. For 2025, the zero-emission transition percentage has been met with other vehicle purchases within the department. By 2030 the Department of Public Utilities is required to have converted 10% of equipment specifically within this vehicle class to zero emission. However, zero emission technology is currently not available in this vehicle configuration.
Additionally, municipal fleet vehicles assigned to the Department of Public Works shall transition to zero emission technologies utilizing the Purchase compliance pathway. Under the Purchase compliance pathway 50% of all purchases must be zero emission. However, this requirement changes to 100% in 2027. For 2025, this acquisition will be offset through the purchase of one electric Ford Lightning which qualifies as a Class 2b vehicle under the Advanced Clean Fleets regulation.
The Public Works truck identified for replacement is on a 10 year or 100,000-mile replacement schedule which has been established by the Fleet Management Division as the optimum replacement time. Currently the truck is 20 years old and has over 170,000 miles. The unit has exceeded its’ cost-effective life span and has been incurring significant repair costs. Staff recommends replacement of this truck based on age and condition.
The trucks will be purchased through a competitively solicited cooperative procurement process administered by Sourcewell. The purchase contract will be awarded to PB Loader Corporation of Fresno, California. The total purchase price is $691,208, 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.
The City Attorney has reviewed and approved to form.
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 is not applicable because this is a cooperative purchase. However, PB Loader Corporation is located in the city of Fresno.
FISCAL IMPACT
No general funds will be used to purchase these items.
The funding to cover the purchase cost of the Peterbilt 567 dump trucks has been included in the FY2025 adopted budget under the operations of the Department of Public utilities, Wastewater Management Division and the Department of Public Works, Landscape Maintenance Division. The dump truck for the Wastewater Division will be funded through the Wastewater Operating Fund, generated primarily by the collection of customer user fees. The Landscape Division truck will be funded through the Community Facilities District Fund, which is financed by property tax assessments collected within designated districts.
The purchase of the Peterbilt 567 dump trucks was delayed in FY2025 due to supply chain constraints stemming from the California Air Resources Board regulation, which limit the number of diesel engines a dealership can sell annually. This restriction significantly reduced vehicle availability and impacted delivery timelines. As a result, the procurement could not be completed in the typical 12-month period. Therefore, the funding for the dump trucks was not spent in FY2025 and if approved, the FY2025 funds will be re-appropriated to FY2026 to complete the acquisition.
Attachments:
Cooperative Purchase Agreement
PB Loader Contract #080521-PBL
Original RFP
Proof of Publication
Proposal Opening Record
Proposal Evaluation
Comment and Review
Board Resolutions