REPORT TO THE CITY COUNCIL
November 8, 2018
FROM: GREGORY A. BARFIELD, Interim Director
Department of Transportation
BY: BRIAN BARR, Assistant Director
Department of Transportation
DUANE MYERS, Fleet Manager
Department of Transportation/Municipal Fleet Division
CLIFF TRAUGH, Senior Management Analyst
Department of Transportation/Municipal Fleet Division
SUBJECT
Title
Approve the award of a cooperative purchase agreement to Ruckstell Sales of Fresno, California, for the purchase of two 520 Peterbilt rear-loading refuse trucks in the amount of $612,959.33
Body
RECOMMENDATION
Staff recommends Council approve the award of a cooperative purchase agreement to Ruckstell Sales of Fresno, California, for the purchase of two 520 Peterbilt rear-loading refuse trucks in the amount of $612,959.33.
EXECUTIVE SUMMARY
The Solid Waste Management Division, under the Department of Public Utilities (DPU), wishes to purchase two 520 Peterbilt rear-loading refuse trucks to replace units past their useful life. The two new units will be used by the Solid Waste Management Division to complete residential routes currently assigned to older trucks in need of replacement. The new trucks will be Heil 27 yard Durapack 5000 bodies on 520 Peterbilt chassis. This combination has proven to be reliable within the fleet and will continue to be the standard as the older and discontinued trucks are removed from service. The Municipal Fleet Division recommends this purchase based on the age and mileage of the trucks identified for replacement. The units would be purchased through a competitively solicited cooperative procurement process administered by Source Well, formally the National Joint Powers Alliance (NJPA).
BACKGROUND
The Solid Waste Management Division is responsible for sanitation programs such as Operation Clean-up, litter control, and FresGO for over 111,000 residential customers. Fifteen drivers service a 112 square mile area recycling discarded lumber, appliances, and various other large objects that would otherwise end up in a landfill. In 2017, Solid Waste Management removed over 25,400 tons of refuse from the city through these programs alone.
To keep these operations moving forward, the Solid Waste Management Division operates 15 rear-loading refuse trucks throughout the city. The Fleet Management Division has identified the Heil bodied Peterbilt rear loading refuse truck as the preferred unit to perform these varied activities. Both Peterbilt and Heil have been in business for more than 25 years and have local dealerships in Fresno to quickly support the fleet. The City of Fresno has been using Heil bodies in its fleet for 14 years and has experienced success in the functionality and durability of this product. In 2015, the Peterbilt chassis was evaluated against other like products by Solid Waste Management, The Department of Transportation, and representatives of Local 39. The final determination was that the Peterbilt chassis was the superior product; and, since 2015, Peterbilt units have continued to perform well in the fleet.
The rear-loading refuse trucks are on an eight-year or 120,000 mile replacement schedule, which has been established by the Fleet Management Division as the optimum replacement time. Currently, two units have been identified for replacement as they are over this limit by both age and mileage.
The equipment will be purchased utilizing competitively solicited cooperative procurement process administered by Source Well. The purchase price per unit is $306,479.67. This price includes the Source Well discount applied to City purchases, as well as delivery and sales tax at 7.975 percent. The Purchasing Division has approved this agreement and recommends Council to approve.
ENVIRONMENTAL FINDING
By the definition provided in the California Environmental Quality Act Guidelines Section 15378, the award of this agreement does not qualify as a “project.”
LOCAL PREFERENCE
Local preference is not applicable as the City is not issuing a request for quote for this cooperative purchase agreement.
FISCAL IMPACT
No General Funds will be used to purchase these items. The funding to cover the purchase cost of the two 520 Peterbilt rear-loading refuse trucks has been included in the FY19 Adopted Budget under the operations of the Solid Waste Management Division.
Attachment:
Heil Agreement