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CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION
From: Lynn Merrill, Director
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Subject Resolution authorizing the execution of a
piggyback purchase between the City of San Bernardino
and Arata Equipment Company of San Carlos, California
for fourteen (14) automated side loading refuse trucks
and bodies to be utilized by the Public Services
Department; and authorizing the Purchasing Manager to
solicit competitive rate quotes for the lease-purchase of
the fourteen trucks.
Dept: Public Services
Date: April 24, 2001
Council Meeting Date: May 7, 2001
Synopsis of Previous Council Action
Reso 95-30 January, 1995
Reso 95-31 January, 1995
Reso 2000-312 October 16, 2000
March 7, 2001 Ways and Means
Recommended Motion:
committee
Adopt resolution
~-4:/1
ynn Merrill
Contact person:
Don Johnson, Fleet Manager
Phone:
5220
Supporting data attached:
Staff Report and Resolution
Ward:
All
FUNDING REQUIREMENTS:
Amount:
One estimated payment of
$319,500 in FY 2001/2002
Source: 527-412-5803
Refuse Residential
~~
Fmance
Council Notes:
5M-
Agenda Item No.~7
CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION
STAFF REPORT
SUBJECT
Resolution authorizing the execution of a piggyback purchase betWeen the City of San Bernardino
and Arata Equipment Company of San Carlos, California for fourteen (14) automated side loading
refuse trucks and bodies to be utilized by the Public Services Department; and authorizing the
Purchasing Manager to solicit competitive rate quotes for the lease-purchase of the fourteen trucks.
BACKGROUND
The Mayor and City Council approved the purchase of fourteen (14) automated side loading refuse
trucks on October 16, 2000 from Arata Equipment Company (Resolution 2000-312) and have
accepted delivel}' of ten (10) of these trucks as of this date. Both the Refuse and Fleet Divisions are
experiencing vel}' satisfactol}' performance from the new automated side loading refuse trucks.
On March 7, 2001, staff presented a report to the Ways and Means Committee discussing the impact
of recently adopted South Coast Air Quality Management District Rules relating to Alternative
Fueled Vehicles. (Exhibit 1 attached). Staff has continuing concerns relating to alternative fuel
technology as it relates to heavy-duty vehicles, with particular emphasis on refuse collection vehicles
and the estimated capital expense of approximately $1.0 million to establish a alternative fuel fueling
station. Because of these concerns, the Ways and Means Committee concurred with the recom-
mendation that the City accelerate its diesel refuse truck vehicle replacement program while
continuing to study cooperative approaches betWeen the City and other affected fleet operators. As
the attached memo indicates, this will allow the City to defer the purchase of alternatively-fueled
refuse trucks.
In order to accomplish this accelerated vehicle replacement program, staff is recommending the
Mayor and Common Council authorize a piggyback purchase of fourteen (14) automated side
loaders, on Contract No. 01-049, as authorized on October 16, 2000. The City has received a letter
from Arata Equipment Company (Exhibit 2) extending the pricing of $192,216.30 including tax for
each truck, for the piggyback purchase of fourteen (14) additional automated side loading trucks.
The extended pricing of these trucks is valid through May 15, 2001 with proposed delivel}' dates of
eight (8) units in August, 2001 and the remaining six (6) units in September, 2001.
FINANCIAL IMPACT
The piggyback purchase of these fourteen (14) automated side loading refuse trucks, totals an
amount of $2,691,028.20 at a cost of $192,216.30 per unit. Annual lease payments will be
determined once the Purchasing Manager obtains lease purchase quotes, estimated at $319,500.
The Public Services Department FY2001/02 Budget will include funds to provide for the lease
payment of the requested fourteen (14) automated side loaders.
RECOMMENDATION
Adopt resolution
CITY OF SAN BERNARDINO
PUBLIC SERVICES DEPARTMENT
INTER-OFFICE MEMORANDUM
FROM:
Fred Wilson, City Administrator
Lynn Merrill, Director 4 ~
May 3, 2001
TO:
DATE:
SUBJECT:
Amended Information Relating to SCAQMD Rules Relating to
Alternative Fueled Vehicles
COPIES:
Don Johnson, Fleet Manager; Arlington Rodgers, Solid Waste Manager
In our memo dated March 1, 2001 we provided a vehicle replacement schedule that was
incorrect. Below IS the amended information:
The current vehicle replacement schedule is shown in the chart below:
FY 2000/2001 FY 2001/2002 FY 2002/2003 FY 2003/2004
Side Loaders 14 7 7 7
Front Loaders 3 0 3 0
RolI-Ofts 2 0 2 0
Accelerating the purchase of vehicles would postpone the need to purchase alternatively fueled
refuse trucks and other heavy-duty vehicles until FY2003/2004 as shown in the chart below:
FY 2000/2001 FY 2001/2002 FY 2002/2003 FY 2003/2004
Side Loaders 28' 0 0 7
Front Loaders 6 0 0 0
RolI-Ofts 42 0 0 0
1 Fourteen (14) of these trucks have already been purchased.
2 Two (2) of these trucks have already been purchased.
There is a four month time line from the issuance of a bid request to submission to the Mayor
and Council for approval, and a six to ten month delay from the date that a Purchase Order is
issued until physical delivery of the trucks. While these additional vehicles would be ordered
in June 2001, the earliest that the City may physically take possession and begin to pay lease
payments would be January or February of 2002. It may be possible to further extend the
delivery times in order to push actual vehicle delivery and accompanying lease payments into
Fiscal Year 2002/2003.
110. ~ 1
5/1/DI
The proposed accelerated schedule as relates to the fourteen additional side loaders is
recommended for the following reasons. The City operates 26 residential collection routes
per day. With projected growth of the City, it may be necessary to increase the number of
routes operated over the next three years. (The City will begin servicing an additional 300
residential accounts transferred from a private hauler in July of this year, and continued
housing starts in the north end of the City add additional customers.) If the City only
replaces 21 of the existing side loaders at this time, it would require the City to continue to
operate seven side loaders as front line trucks that are within one year of reaching their
projected life expectancy of seven years. These seven trucks would continue to increase in
maintenance costs, currently projected at $30,000 per year for a total of $210,000. By
accelerating the replacement now, it would allow the City to operate relatively new fleet of 28
trucks (26 front-line, 2 for growth) at a cost of $5,000 per year for the next several years at a
total cost of $35,000, with a savings in maintenance costs of $175,000 per year.
This strategy further allows the city up to three years to implement an alternative fuels
strategy.
LWjj
Exhibit 1
ARATA EQUIPMENT COMPANY
Sent Via FedeJal Express
April 9. 2001
Mr Don Johnson
City of SlIIl Bernardino
Fleet Sel'\lices Division
182 South Sierra Way
San Bemardlllo, ea. 92408
Dear Pon:
It is WIth great pleasure that I write you the following letter. We at Arata Equipment
Company alld Labrie are very pleased to advise you and your city that we are very delighted
to allow the City of San Bernardino to add 00\0 your last purchase Older. This was for RfQ
F-0049.A YowP.O#OI-049
We will offer fowteen (14) more units at the same sales price and conditions as your
previous order The time frames that we are making thiS offer atc conlingent upon the following
dates:
A We will need your purchase order on or before May
I Sib . The reason for this is because we have tentatively
ordered the trIlCks from Volvo. There is a ~hort window
of opportunity for c.nceling this order from Volvo. If
we don't have a Purchase Order flam your CIty we would
then be obligated to take delivery of me: 14 lTUCks wilhout
having a home for them.
B. The proposed delivery dates of on these 14 units will be
g units in August and 6 units 10 September The delivery
dates can't be: altx:rOO out for delivery dates longer that
what we have proposed. This is a basic function relative
to the cost of money.
of any furtbeT assistance in this matter. please cIon't hesitate to call
,~
1160 Industrial Road #12. San Carlos, CA 94070 (651)) 508.1010 FOX: (650) 508-1011
fmotl: donOoroto.cc/Tl 1'l"P1"""""",.orato.com
Distr.bulOlS For: Loocn. LOOOI. Peerless/OWl. Karon. LaBrie, Amell-Kart. Pfecision lOOds
W"eief'\.oo"on Silenr Dnve, !l<Jrker. PerkinS. Tne Son(jbog<;J€.:'
,.
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Resolution No.
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RESOLUTION OF THE CITY OF SAN BERNARDINO AUTHORIZING THE
EXECUTION OF A PIGGYBACK PURCHASE BETWEEN THE CITY OF SAN
BERNARDINO AND ARATA EQUIPMENT COMPANY OF SAN CARLOS,
CALIFORNIA FOR FOURTEEN (14) AUTOMATED SIDE LOADING REFUSE
TRUCKS AND BODIES TO BE UTILIZED BY THE PUBLIC SERVICES
DEPARlMENT; AND AUTHORIZING THE PURCHASING MANAGER TO
SOLICIT COMPETITIVE RATE QUOTES FOR THE LEASE-PURCHASE OF THE
FOURTEEN TRUCKS.
BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE
CITY OF SAN BERNARDINO AS FOLLOWS:
SECTION 1. That the Mayor and Common Council on October 16, 2000 authorized the
purchase of fourteen (14) automated side-loading refuse trucks and bodies from Arata Equipment
Company of San Carlos, California, for the furnishing and delivery of said trucks; that Arata
Equipment Company of San Carlos, California has agreed to provide a piggyback purchase for the
furnishing and delivery of fourteen (14) additional automated side-loading refuse trucks and bodies
at the same price as previously purchased on Contract No. 01-049, for the total amount of
$2,691,028.20; pursuant to this detennination, the Purchasing Manager is hereby authorized and
directed to issue a piggyback purchase on Contract No. 01-049 for said fourteen (14) automated
side-loading refuse trucks and bodies to said Arata Equipment Company; such award shall only
be effective upon the issuance of a Purchase Order by the Purchasing Manager.
SECTION 2. That the Purchasing Manager is hereby authorized to solicit competitive
rate quotes and award a lease-purchase to the lowest responsible leasing company for the fourteen
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(14) new automated side loading refuse trucks and bodies for a period of up to five (5) years.
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SECTION 3. The authorization to execute the above referenced purchase order
is rescinded if it is not issued within sixty (60) days of the passage of this resolution.
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S/1/01
April 26, 2001
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RESOLUTION OF THE CITY OF SAN BERNARDINO AUTHORIZING THE
EXECUTION OF A PIGGYBACK PURCHASE BETWEEN THE CITY OF SAN
BERNARDINO AND ARATA EQUIPMENT COMPANY OF SAN CARLOS,
CALIFORNIA FOR FOURTEEN (14) AUTOMATED SIDE LOADING REFUSE
TRUCKS AND BODIES TO BE UTILIZED BY THE PUBLIC SERVICES
DEPARTMENT; AND AUTHORIZING THE PURCHASING MANAGER TO
SOLICIT COMPETITIVE RATE QUOTES FOR THE LEASE-PURCHASE OF THE
FOURTEEN TRUCKS.
I HEREBY CERTIFY that the foregoing resolution was duly adopted by the Mayor and
Common Council of the City of San Bernardino at a
meeting thereof, held on
the
day of
,2001, by the following vote, to wit:
Council Members:
Ayes
Abstain
Nays
Absent
ESTRADA
LIEN
McGINNIS
SCHNETZ
SUAREZ
ANDERSON
McCAMMACK
Rachel Clark, City Clerk
City of San Bernardino
The foregoing resolution is hereby approved this
day of
, 2001.
Approved as to form and
Legal content;
James F. ~enman, City Attorney
~'
BY: . ~'''''''-o>7. j2-C"'~'-I
(l
April 26, 200 1
Judith Valles, Mayor
City of San Bernardino
2
** FOR OFFICE USE ONLY - NOT A PUBLIC DOCUMENT **
RESOLUTION AGENDA ITEM TRACKING FORM
Meeting Date (Date Adopted): 5- ro \ Item # '2. 'I Resolution #
Vote: Ayes 1-, Nays.e- Abstain..G-
Change to motion to amend original documents:
Reso. # On Attachments: _ Contract term: -
Note on Resolution of Attachment stored separately:-=-
Direct City Clerk to (circle I): PUBLISH, POST, RECORD W/COUNTY
Date Sent to Mayor: 6- ~-O \
Date of Mayor's Signature: 5 --'1(-()j
Date ofClerklCDC Signature: 5 -'1-D \
Date Memo/Letter Sent or .
60 Day Reminder Letter Sent on 30th day:
90 Day Reminder Letter Sent on 45th day:
See Attached:
See Attached:
See Atta hed:
Request for Council Action & Staff Report Attached:
Updated Prior Resolutions (Other Than Below):
Updated CITY Personnel Folders (6413, 6429, 6433,10584,10585,12634):
Updated CDC Personnel Folders (5557):
Updated Traffic Folders (3985, 8234, 655, 92-389):
Copies Distributed to:
City Attorney /
Parks & Rec.
Code Compliance
Dev. Services
Police Public Services /
Water
Notes:
2.ro I -C\ 8.
Absent ~
NullNoid After: k, J)~s. }-,-I.-ClI
I
By: -
Reso. Log Updated:
Seal Impressed:
,/
V""'
Date Returned: -
Yes ./ No By
Yes No-L By
Yes No ~ By
Yes No V By
Yes No/ By
EDA
Finance /'
MIS
Others:
BEFORE FILING, REVIEW FORM TO ENSURE ANY NOTATIONS MADE HERE ARE TRANSFERRED TO THE
YEARLY RESOLUTION CHRONOLOGICAL LOG FOR FUTURE REFERENCE (Coutract Term, etc.)
Ready to File: (y)1'"
Date: 5-1<::, ~~ I
Revised 01/12/01