To approve the purchase of seven (7) Refuse Trucks in the amount of $1,491,324 from Bond Equipment Company, Inc. and seven (7) Refuse Truck Bodies in the amount of $1,309,640 from Heil of Texas, for the total amount of $2,800,964, 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. 686-22) Approved

It is the recommendation of Fleet Services to purchase seven (7) Refuse Trucks and seven (7) Truck Bodies.  Seven (7) Refuse Trucks will be purchased in the amount of $1,491,324 from Bond Equipment Company, Inc. through BuyBoard Contract No. 601-19.  Seven (7) Truck Bodies will be purchased in the amount of $1,309,640 from Heil of Texas through BuyBoard Contract No. 686-22.  The total cost of the seven (7) Refuse Trucks and seven (7) Truck Bodies is $2,800,964.

Six of these units are scheduled replacements from Capital Outlay FY22-23 in Environmental Waste Collections.  One unit is an unforeseen, unscheduled, emergency replacement for unit 19906.  This unit caught fire resulting in irreparable damage.

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.  Not replacing the damaged unit would lead to higher demands on the remaining trucks causing extensive maintenance costs.  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. 686-22 / City of Plano Internal Contract No. 2023-0278-O)

Funds are available in the FY 2022-23 Adopted Equipment Replacement Fund budget to purchase seven (7) Refuse Trucks and seven (7) Refuse Truck Bodies in the total amount of $2,800,964. Six of the units are scheduled replacements for units 15900, 16916, and 17930 Truck, Compactor, Rear Loading and units 18936, 18942, and 18944 Truck, Compactor, Side Loading in Environmental Waste Collections.  One unit is an unscheduled, emergency replacement of unit 19906 Truck, Compactor, Side Loading in Environmental Waste Collections that caught fire, resulting in irreparable damage. The total budgeted amount for these items in the FY 2022-23 Adopted Equipment Replacement Fund budget was $2,394,000.  The additional funds needed for this purchase, in the amount of $406,964 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.