Title
Resolution to Amend the Fleet and Facility Unit FY13 Budget by Appropriating Funds from the Fleet Services Fund Balance and to Approve the Purchase of Ten Side Loading Refuse Trucks from Fredrickson Supply (ITB # 4250 $2,832,394.00) (8 Votes Required)
Memorandum
The attached resolution authorizes the purchase of eight side loading refuse trucks with a single automated arm and two trucks with dual arms. The trucks will be used by the Public Services Area, Field Operations Unit and Recycle Ann Arbor. Five single arm trucks and one dual arm truck are for the Solid Waste group and three single and one dual arm trucks are for Recycle Ann Arbor.
All ten trucks will use 2013 Mack model LEU chassis's and Labrie model Expert Long Reach Helping Hand packer bodies. The single arm trucks have one arm that extends from the curb side of the truck with 120" of reach for grabbing and emptying carts. The dual arm trucks have the same arm and a second arm that extends up to 84" from the street side of the truck. Both arms are operated by a single joystick with a switch for selecting the arm that is to be operated. The dual arms will allow the operator to collect carts from both sides of one way streets and alleys in one pass.
Fredrickson Supply, LLC, Wyoming, MI using Interstate Truck Source, Inc., Romulus, MI as its subcontractor/chassis supplier, was the lowest responsible bidder to ITB # 4250, dated September 7, 2012 (see attached bid tab). The price for the eight single arm trucks is $278,443.00 each and the two dual arm trucks are $302,425.00 each for a total purchase price of $2,832,394.00.
The units that will be used by the Solid Waste group will replace four 2004 and two 2005 model year trucks. Over the last five year the average cost of non maintenance (unscheduled) repairs has increased 49% from $31,743.00 to $62,183.00 per truck. The majority of the trucks have reached or exceeded the life expectancy of the engine hours. An engine failure would cost an estimated $15,000.00 to $20,000.00. In addition, the automated arms need to be rebuilt or replaced costing between $20,000.00 and $25,000.00 each. In the last fiscal year, the trucks have averaged 37 breakdown repairs per truck.
The units that Recycle Ann Arbor will be assigned will replace two 2004 and two 2007 model year trucks. The City's contract with Recycle Ann Arbor calls for the City to replace their collection trucks after seven years of service. The two 2004 model year trucks were received in January 2005 and have been in service for 7 years and 10 months. The two 2007 trucks are scheduled for replacement in fiscal year 2014. The dealer has estimated the delivery of the new trucks will take 220 days after they receive the purchase order which means that the City should take delivery shortly after the beginning of FY14. The purchase of the four trucks assigned to Recycle Ann Arbor will also complete their conversion to an automated arm collection fleet.
The Fleet and Facility Unit has adequate funds available in the Fleet Services Fund balance for this purchase.
Fredrickson Supply, LLC received Human Rights approval on May 16, 2012.
Staff
Prepared by: Thomas A. Gibbons, Financial Analyst-Fleet and Facilities Unit
Reviewed by: Matthew J. Kulhanek, Manager Fleet and Facilities Unit and Craig Hupy, Public Services Administrator
Approved by: Steven D. Powers, City Administrator
Body
Whereas, The Fleet & Facilities Unit needs to purchase replacement side loading refuse trucks for the City's fleet;
Whereas, Fredrickson Supply, LLC was the lowest responsible bidder to ITB # 4250; and
Whereas, Fredrickson Supply, LLC received Human Rights approval on May 16, 2012;
RESOLVED, That the City Council approves an amendment to the Fleet and Facility Unit FY13 budget by appropriating $2,832,394.00 from the Fleet Services Fund Balance;
RESOLVED, That City Council approve the issuance of a purchase order to Fredrickson Supply, LLC for the purchase of eight 2013 Mack LEU with Labrie Long Reach Helping Hand packer bodies at $278,443.00 each and two 2013 Mack LEU with Labrie Dual Arm Helping Hand packer bodies at $302,425.00 each for a total amount of $2,832,394.00;
RESOLVED, That funds to be available without regard to fiscal year;
RESOLVED, That the refuse trucks being replaced (#s 8630, 8631, 8632, 8634, 8635, 8636, 8685, 8690, 8693, and 8694) be sold at auction; and
RESOLVED, That the City Administrator is authorized to take the necessary actions to implement this resolution.