Item Coversheet
  CITY COUNCIL AGENDA MEMO
MEETING DATE: 6/27/2022
DEPARTMENT:Fleet Services
DIRECTOR:Dan Prendergast, Director of Public Works
AGENDA ITEM:To approve the purchase of Eight (8) Refuse Truck Chassis and Bodies
RECOMMENDED ACTION:Purchase from Existing Contract

ITEM SUMMARY

To approve the purchase of eight (8) Refuse Truck Chassis in the amount of $1,589,984 from Bond Equipment Company, Inc. and eight (8) Refuse Truck Bodies in the amount of $1,725,900 from Heil of Texas, for the total amount of $3,315,884, 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

BACKGROUND

It is the recommendation of Fleet Services to purchase eight (8) Refuse Truck Chassis in the amount of $1,589,984 from Bond Equipment Company, Inc. through BuyBoard Contract No. 601-19 and eight (8) Refuse Truck Bodies in the amount of $1,725,900 from Heil of Texas through BuyBoard Contract No. 599-19.  The total cost of the eight (8) Refuse Trucks Chassis and Bodies is $3,315,884.

 

These units are scheduled replacements from Capital Outlay FY22-23.  COVID-19 has caused uncertainties and delays in the manufacturer’s delivery schedule.  Therefore, it is necessary to order these units as soon as possible to ensure their timely delivery.  These units are assigned to 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. 

 

The City is authorized to purchase from a cooperative purchasing program with another local government or a local cooperative organization pursuant to Chapter 271 Subchapter F of the Texas Local Government Code and by doing so satisfies any State Law requiring local governments to seek competitive bids for items. (BuyBoard Contract No. 601-19 and BuyBoard Contract No. 599-19 /City of Plano Internal Contract No. 2022-0535-O)

FINANCIAL SUMMARY/STRATEGIC GOALS

Funds are being budgeted in the FY 2022-23 Proposed Equipment Replacement Fund budget for the purchase of eight (8) Refuse Truck Chassis and eight (8) Refuse Truck Bodies in the amount of $3,315,884. These units are scheduled replacements assigned to Environmental Waste Collections and will be used for refuse collection. COVID-19 has caused uncertainties and delays in the manufacturer's delivery schedule; therefore, it is necessary to order these units as soon as possible to ensure their timely delivery.

 

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

ATTACHMENTS:
DescriptionUpload DateType
Photograph of Refuse Truck6/13/2022Attachment