REPORT TO THE CITY COUNCIL FROM: BRIAN BARR, Director General Services Department BY: CLIFF TRAUGH, Administrative Manager General Services Department SUBJECT ..Title Approve the award of a cooperative purchase contract to Haaker Equipment Company Inc. of La Verne, California for the purchase of two Elgin CNG Broom Bear street sweepers in the amount of $1,158,438 for Public Works Street Maintenance Division ..Body RECOMMENDATION Staff recommends Council approve the award of a cooperative purchase contract to Haaker Equipment Company Inc. of La Verne, California for the purchase of two Elgin CNG Broom Bear street sweepers in the amount of $1,158,438. EXECUTIVE SUMMARY The Department of Public Works is requesting approval to purchase two Elgin Broom Bear street sweepers, costing $579,219 each, for the total amount of $1,158,438. The two new units will be used by the Streets Division to complete residential and commercial routes currently assigned to older sweepers that have reached the end of their useful life. The General Services Department recommends this purchase based on the age and hours of the street sweepers identified for replacement. The new units will be purchased through a competitively solicited cooperative procurement process administered by Sourcewell, formerly the National Joint Powers Alliance (NJPA). BACKGROUND The Department of Public Works, Street Maintenance Division, is responsible for maintaining the cleanliness of over 1,600 miles of city streets, alleys, and boulevards. This task is accomplished with 21 sweepers running day and night shifts throughout the city. Currently two of these units have been identified for replacement. The City of Fresno has been using Elgin Broom Bear sweepers in the fleet for 23 years and has experienced success in the functionality and durability of this product. The new units will be powered by Compressed Natural Gas, which has proven to be both economical and environmentally conscious. The equipped L9N "Near Zero" engines produce only one tenth of the allowable NOX greenhouse gas emissions and meet the latest EPA standards set in 2017 for this type of equipment. Due to the harsh environment street sweepers operate in, the replacement schedule is set at five years or 10,000 hours whichever comes first. This schedule was revised in 2012, after a thorough analysis by the Municipal Fleet Division found that repair costs were outweighing acquisition costs at the less aggressive ten-year schedule. As street sweepers age past this five-year point, maintenance and repair costs rise significantly. The two units identified for replacement are currently beyond the recommended replacement schedule. The street sweepers will be purchased through a competitively solicited cooperative procurement process administered by Sourcewell, formerly the National Joint Powers Alliance (NJPA). The purchase contract will be awarded to Haaker Equipment Company who is the City of Fresno's regional dealer for Elgin, a subsidiary of Federal Signal Corporation. The price per unit is $579,219, this price includes the Sourcewell discount applied to City purchases as well as sales tax at 8.35%. The Purchasing Department has approved this contract and recommends Council to approve. ENVIRONMENTAL FINDING By the definition provided in the California Environmental Quality Act Guidelines Section 15378, the award of this contract does not qualify as a "project." LOCAL PREFERENCE Local preference was not implemented because this is a cooperative purchase. FISCAL IMPACT No general funds will be used to purchase these items. The funding to cover the purchase cost of the two Elgin CNG Broom Bear Street Sweepers has been included in the FY2023 adopted budget under the operations of the Department of Public Works. The two new street sweepers will be financed through the Master Equipment Lease Purchase Agreement (MELPA) with the first payment expected in FY2024. The source of funding for this project is the Community Sanitation Fund, generated by the collection of customer user fees. Attachments: Minnesota Board Resolutions Sourcewell Comment & Review Elgin Sweeper Contract Sourcewell Evaluation Proposal Opening Record Proof of Publication Sourcewell RFP