To approve the purchase of seven (7) Refuse Truck chassis in the amount of $1,415,207 from Bond Equipment Company, Inc. and seven (7) Refuse Truck bodies in the amount of $1,180,300 from Heil of Texas, for the total amount of $2,595,507, for Fleet Services to be used by Environmental Waste Collections through existing contracts; and authorizing the City Manager to execute all necessary documents. (BuyBoard Contract No. 601-19 and BuyBoard Contract No. 599-19) Approved

It is the recommendation of Fleet Services to purchase seven (7) Refuse Truck chassis and seven (7) Refuse Truck bodies.  Seven (7) Refuse Truck chassis will be purchased in the amount of $1,415,207 from Bond Equipment Company, Inc. through BuyBoard Contract No. 601-19.  Seven (7) Refuse Truck bodies will be purchased in the amount of $1,180,300 from Heil of Texas through BuyBoard Contract No. 599-19.  The total cost of the seven (7) Refuse Truck chassis and Refuse Truck bodies is $2,595,507.

These units are scheduled replacements from Capital Outlay FY21-22 in Environmental Waste Collections and will be used for refuse collection. The purchase of these units is necessary for the following reasons:

1.     These units are essential to this department’s daily operations and are required to maintain current service levels.

2.     The old units are in need of replacement.  The determination for the need of replacement is based on age, usage, maintenance cost, and re-sale value.  Based on these criteria, Fleet Services recommends the replacement of the above units.

3.     If these units are not replaced, we will incur additional maintenance costs and the salvage values will be greatly depreciated.  In addition, the older, aging units will limit the users’ ability to perform their duties because of increased breakdowns and additional downtime for repairs. 

Funds are available in the FY 2021-22 Adopted budget to purchase seven (7) Refuse Trucks and Truck Bodies in the amount of $2,595,507. These units are scheduled replacements for units 13948 and 15902 Truck, Compactor, Rear Loading and units 15904, 16908, 16910, 16912, and 16914 Truck, Compactor, Side Loading in Environmental Waste Collections.  The total budgeted amount for these items in the FY 2021-22 Adopted Equipment Replacement Fund budget was $2,362,000.  The additional funds needed for this purchase, in the amount of $235,507 are available from savings in previous Equipment Replacement Fund purchases.

Approval of this purchase relates to the City's Strategic Plan Critical Success Factor of Excellent, Innovative, and Accountable City Government.