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Home My WebLink About31-Public Services . CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION From: Lynn Merrill, Director Dept: Public Services 0 r j' ~, ""I>~ L Date: May 16, 2001 Subject: Resolution authorizing the execution of a purchase order for six (6) commercial front load refuse collection trucks to Arata Equipment Company of San Carlos California, to be utilized by the Public Setvices Refuse Division; and authorizing the Purchasing Manager to solicit competitive lease rate quotes for the lease- purchase of the six trucks Synopsis of Previous Council Action Resolution 95-108 Resolution 95-109 Resolution 95-169 Resolution 98-337 Purchase of three Commercial Front Load Refuse vehicle cab and chassis Purchase of three Commercial Front Load Refuse Trucks Lease of Same Purchase of three Commercial Front Load Refuse Trucks Recommended Motion: Adopt Resolution. +- 4u11 ,. Lynn Merrill Contact person: Arlington Rodgers, Solid Waste Manager Phone: 5140 Supporting data attached: Yes Ward: All FUNDING REQUIREMENTS: Amount: One estimated payment of $165,300 in FY2001/2002 Source: 527-413-5803 Lease Payments Finance Council Notes: Agenda Item No. 3 J t,/'1/0j CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION STAFF REPORT SUBJECT A resolution authorizing the execution of a purchase order for six (6) commercial front load refuse collection trucks to Arata Equipment Company of San Carlos, California to be utilized by the Public Services Refuse Division; and authorizing the Purchasing Manager to solicit competitive lease rate quotes for the lease-purchase of the six trucks. BACKGROUND The Public Services Department FY2000/01 budget provides for the replacement of six (6) front loading refuse collection vehicles. These vehicles are used daily in the collection of solid waste and commingled recyclables from approximately 3,000 customers. The City currently operates nineteen (19) front loading refuse collection vehicles; the oldest trucks in the fleet are 1986 models. The Refuse Division is currently experiencing more frequent service interruptions due to increased breakdowns and component failures due primarily to the age of the vehicles. 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 :Oi.strict 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 recommendation 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. Notices inviting bids for front loading refuse trucks, Bid No. F-01-60 were mailed to twenty-six (26) vendors, the San Bernardino Chamber of Commerce, advertised in the San Bernardino County Sun Newspaper and the City Web page. Five (5) vendors responded with one vendor submitting three (3) different options; one vendor withdrew their bid at the bid opening, and therefore was a no bid. The bids consisted of two parts: a truck chassis manufacturer and a refuse body manufacturer. No known chassis or refuse body manufacturers are located within the City of San Bernardino Therefore, some chassis vendors, in order to represent a variety of body manufacturers, submitted multiple bids using the same chassis with different bodies. The recommended configuration consists of a diesel chassis, the refuse collection body and the rear-view camera. In the following list under Manufacturer, the first name is the body manufacturer and the second is the chassis manufacturer. The following bids were received: VENDOR Arata Equipment Rush Truck Center Carmenita Truck McNeilus Truck Carmenita Truck LOCATION San Carlos, CA Fontana, CA Santa Fe Springs Colton, CA Santa Fe Springs MANUFACIURER BODY/CHASSIS LabrielVolvo Amrep/Peterbilt EdgelV olvo McNeilus/V olvo PakMor/V olvo PRICE PER UNIT(w!rax) $199,209.85 $ 160,680.00 $ 176,875.00 $ 181,648.00 ($188,67500) (Disqualified) $ 201,025.00 No Bid Carmenita Truck RDO Truck Center Santa Fe Springs Riverside Heil/V olvo All vendors were requested to provide specific requirements relating to warranty. Because of early wear- out problems with the previous refuse trucks, the Department requested that the body vendor warranty the body and ann for a full five (5) years of normal operation. Any warranty repairs controlled by the vendor must be completed within ten (10) days or the City would reserve the right to charge back to the vendor $300 per day for each day overdue. Staff has reviewed each submission and has detennined that Arata Equipment Company has met or exceeded all of the requirements set forth in the specification, and is the best responsible bid. Arata Equipment Company provided the requested five-year body warranty, pennitted warranty work to be performed by the City at the Fleet Division with reimbursement of such work by the vendor, and guaranteed parts availability for a five-year period. In addition, Arata Equipment Company offered a performance bond per truck to cover the five-year warranty period at an additional cost of $850 per truck. This feature was not included in the price comparison or in the recommendation. Other vendors stated a willingness to provide this bond, but failed to supply a price for the bond as requested. Also, the City has previously purchased side loading trucks from Amta and many of the components are interchange<tble between the front loading and the side loading trucks. This will increase the cost efficiency of Fleet Services as less parts are required to be purchased and stored. Staff has also taken into consideration the current levels of service received from McNeilus Trucks. The City has previously purchased six (6) front load refuse trucks from NcNeilus Trucks and experienced delayed deliveries up to 48 days past the stated date. Staff has also experienced nwnerous service delays and warranties that were not honored in a timely manner, some taking five months to be cleared. Each vendor was required to provide the City with a demonstration truck for three days to be operated by City refuse drivers and inspected by City mechanics for their opinion of each vehicle. One vendor, Carmenita Truck - PakMor/Volvo, was disqualified for failure to provide the City with the required demonstration vehicle. Each operator that participated in the demonstration gave the Labrie vehicle from Arata high marks. The mechanics provided input as to the serviceability and longevity of the vehicles and also gave the Labrie excellent remarks. The opinions of the employees that are directly involved in the operation and maintaining of the vehicles were highly regarded in staff's recommendation. Arata Equipment Company has stated that the first unit will be received within 120 days of the confirmed purchase agreement. FINANCIAL IMPACT The Public Services Department is recommending the purchase of six (6) front loading refuse trucks and bodies at a cost of$199,209.85 per unit including tax and delivety at a total cost of$1, 195,259. 10. One estimated annual lease payment of $165,300 will occur in FY 2001-2002. The actual lease payment amount will be determined once the Purchasing Manager obtains lease purchase quotes. RECOMMENDATION Adopt resolution. 2 Exhibit 1 CITY OF SAN BERNARDINO PUBLIC SERVICES DEPARTMENT INTER-OFFICE MEMORANDUM FROM: Fred Wilson, City Administrator Lynn Merrill, Director ~ ~ TO: DATE: May 3, 2001 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 I 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. 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. (fhe 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. LM/jj . . ** FOR OFFICE USE ONLY - NOT A PUBLIC DOCUMENT ** RESOLUTION AGENDA ITEM TRACKING FORM Meeting Date (Date Adopted): '=' -4 -G \ Item # & \ Vote: Ayes I-i Nays -e- Change to motion to amend original documents: - Resolution # Abstain --'C7- Lcc\- ISO Absent ..e- Reso. # On Attachments: -=-- Contract term: - Note on Resolution of Attachment stored separately: --==-- Direct City Clerk to (circle 1): PUBLISH, POST, RECORD W/COUNTY \}6~ Date Sent to lvIayor: " -4-c \ Date of Mayor's Signature: G,-S'DI Date of Clerk/CDC Signature: G:, -5 -0 \ Date Memo/Letter S See Attached: See Attached: See i nature: 60 Day Reminder Letter Sent on 30th day: 90 Day Reminder Letter Sent on 45th day: 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 SelVices'/ Water Notes: NullNoid After: Kl ~\ J~-3-()1 , By: - Reso. Log Updated: Seal Impressed: ~ ,/ Date Returned: - d: Yes /' No By - Yes No 0/" By Yes No~ By Yes No ~ By Yes No /' By EDA Finance ", MIS Others: BEFORE FILING. REVIEW FORM TO ENSURE ANY NOTATlONS MADE HERE ARE TRANSFERRED TO THE YEARLY RESOLUTlON CHRONOLOGICAL LOG FOR FUTURE REFERENCE Contract Term etc. Ready to File: rY'\ Date: Co (, 0 Revised 01112/0 I