REPORT TO THE CITY COUNCIL December 7, 2017 FROM: JIM SCHAAD, Director Department of Transportation BY: DUANE MYERS, Fleet Manager Department of Transportation, Fleet Management Division CLIFF TRAUGH, Sr. Management Analyst Department of Transportation, Fleet Management Division SUBJECT ..Title Approve the award of a cooperative purchase agreement to Ruckstell Sales of Fresno, California, for the purchase of two 520 Peterbilt rear-loading refuse trucks in the amount of $606,000 ..Body RECOMMENDATION Staff recommends Council approve the award of a cooperative purchase agreement to Ruckstell Sales of Fresno, California, for the purchase of two 520 Peterbilt rear-loading refuse trucks in the amount of $606,000. EXECUTIVE SUMMARY The Solid Waste Management Division seeks approval to purchase two 520 Peterbilt rear-loading refuse trucks to replace units past their useful life. The two new units will be used by the Solid Waste Management Division to complete residential routes currently assigned to older trucks in need of replacement. The new trucks will be Heil 27-yard Durapack 5000 bodies on 520 Peterbilt chassis. This combination has proven to be reliable within the fleet and will be the standard moving forward as older and discontinued trucks are removed from service. The Fleet Management Division recommends this purchase based on the age and mileage of the trucks identified for replacement. The units would be purchased through a competitively solicited cooperative procurement process administered by the National Joint Powers Alliance (NJPA). BACKGROUND The Solid Waste Management Division is responsible for sanitation programs such as Operation Clean-up, and litter control for over 111,000 residential customers. Fifteen drivers service a 112-square mile area recycling discarded lumber, appliances, and various other large objects that would otherwise end up in a landfill. In 2016, the Solid Waste Management Division removed over 29,150 tons of refuse from the city through these programs alone. To keep these operations moving forward, the Solid Waste Management Division operates 15 rear-loading refuse trucks throughout the city. The Fleet Management Division has identified the Heil bodied Peterbilt rear-loading refuse truck as the preferred unit to perform these varied activities. Both Peterbilt and Heil have been in business for more than 75 years and have local dealerships in Fresno to quickly support the fleet. The City of Fresno has been using Heil bodies in the fleet for more than 13 years and has experienced success in the functionality and durability of this product. In 2015, the Peterbilt chassis was evaluated against other like products by the Solid Waste Management Division, the Fleet Management Division, and representatives of Local 39. The final determination was the Peterbilt chassis is the superior product, and since 2015 Peterbilt units have continued to perform well in the fleet. The rear-loading refuse trucks are on an eight-year or 120,000 mile replacement schedule, which has been established by the Fleet Management Division as the optimum replacement time. Currently, two units have been identified for replacement as they are over this limit by both age and mileage. The equipment will be purchased utilizing competitively solicited cooperative procurement process administered by the NJPA. The purchase price per unit is $302,966. This price includes the NJPA discount applied to City purchases, as well as delivery and sales tax at 7.975 percent. The Purchasing Division has approved this contract and recommends Council approval. ENVIRONMENTAL FINDING Pursuant to California Environmental Quality Act Guidelines Section 15378, the award of this contract does not qualify as a "project." LOCAL PREFERENCE Local preference is not applicable because the City is using a cooperative purchase agreement. FISCAL IMPACT No general funds will be used to purchase these items. The funding for the purchase of the two 520 Peterbilt rear-loading refuse trucks has been included in the FY18 adopted budget under the operations of the Solid Waste Management Division. Attachment: Acceptance and Award - NJPA and Heil Co.