Title
Resolution to Authorize the Purchase of One Western Star Swap Loader Chassis with Underbody Snowplow and Five Swap Loader Bodies from D & K Truck Company and Appropriate Funding (State of Michigan MiDeal - $495,506.71) (8 Votes Required)
Memorandum
The attached resolution authorizes the purchase of one Western Star tandem axle swap loader chassis with underbody snowplow at $333,481.50, one swap loader tandem axle dump body at $38,778.95, one swap loader tandem axle spreader body at $57,883.10, one tandem axle tanker body at $42,339.20 and two tandem axle roll off dumpster bodies at $11,511.98 each for a total of $495,506.71 through the State of Michigan MiDeal cooperative purchasing program (#240000000095) for use by the Public Works Unit of the Public Services Area.
The Public Works Unit currently has an aging dump truck fleet and has requested a new style chassis platform called a swap loader which allows the truck to be significantly more versatile. A swap loader chassis allows a driver to change the type of body on the back of the truck within minutes. This proposed truck is for the Streets Department and will have use of dump body, spreader body, tanker body and roll off dumpster body. This truck will be set up identical to the tandem axle trucks that were purchased for Streets Department last November. This is the last of three orders needed to replace the nine oldest dump trucks operated by the Streets Departments.
This swap loader set up will allow us to have separate replacement cycles for the chassis and swap loader bodies. This will be beneficial as we have found with our current dump truck configuration that the chassis has more issues and deterioration than the bodies do. This configuration is expected to allow use the bodies much longer than the chassis. Staff anticipates the bodies will last the full life of the chassis and the full life of a replacement chassis, saving the City money in the future by not having to buy the chassis and body together. These chassis will be on a 10-year replacement cycle and the bodies will be on a 20-year replacement cycle.
This new truck will replace truck #4558 a 2013 Freightliner 5 yard dump with 7,647 hours of use. With an expected 16-24 months for delivery of the new truck, this existing truck will be well beyond its useful life when removed from service. The material spreader for this truck, asset #4688, will also be removed from service and sold.
These trucks are used by Public Works staff to maintain City streets throughout the year and to plow and salt in the winter.
Both the Western Star chassis and the Monroe swap loader bodies may be subject to material surcharges which are more common on heavy vehicles with long lead times and large amounts of materials used in fabricating these vehicles. Staff is requesting that a contingency in the amount of $20,000.00 be approved to cover any surcharges.
D & K Truck Company, Lansing, MI, is the lowest responsive bidder to the State of Michigan MiDeal cooperative purchasing program for heavy truck cab and chassis.
D & K Truck Company complies with the requirements of the City’s Conflict of Interest and Non-Discrimination ordinances.
Budget/Fiscal Impact: There are no Fleet replacement funds available for the purchase of this truck as all replacement funds collected for this group of nine trucks have already been committed to previous dump truck purchases. The full funding for this equipment has been budgeted in the approved FY25 Public Works Major Streets Fund Operations and Maintenance budget and was transferred to the Fleet Services Fund as a one-time capital contribution. With the appropriation of this $495,506.71 of capital contribution from Fleet revenue, adequate funding for the purchase of this truck and five bodies is available in the approved FY25 Fleet Services Fund Operations and Maintenance budget.
The new truck will be placed on a 10-year replacement schedules which is consistent with our other dump trucks. The new bodies will be placed on a 20-year replacement schedule. Public Works Streets Department will have an annual replacement cost of approximately $40,336.00 for the dump truck and an annual replacement cost of approximately $13,169.00 for the five swap loader bodies. This Fleet replacement cost covers the future cost of replacing the truck and bodies.
Green Fleet Policy:
The Green Fleet Committee approved the need for the replacement of this equipment, that the proposed replacement is consistent with the Green Fleet Policy and recommended the approval of this resolution. The Sustainability and Innovations Manager has concurred with the actions of the Committee.
Staff
Prepared by: CJ Stegink, Fleet Supervisor
Matthew J. Kulhanek, Fleet & Facilities Unit Manager
Reviewed by: Marti Praschan, Interim Deputy City Administrator
Approved by: Milton Dohoney Jr., City Administrator
Body
Whereas, The Fleet & Facilities Unit needs to purchase replacement equipment for the City’s fleet;
Whereas, Competitive bids were received by the State of Michigan MiDeal cooperative purchasing program and D & K Truck Company of Lansing, MI was awarded contract (#240000000095) for heavy truck cab and chassis;
Whereas, D & K Truck Company complies with the requirements of the City’s Conflict of Interest and Non-Discrimination Ordinances; and
Whereas, Upon approval of the appropriation request from Fleet revenue, adequate funding for this purchase is available in the FY2025 Fleet Services Fund Operations and Maintenance budget;
RESOLVED, That City Council approve the issuance of a purchase order to D & K Truck Company for the purchase of one Westen Star tandem axle swap loader chassis with underbody snowplow and five swap loader bodies in the amount of $495,506.71 and authorize a chassis and body surcharge contingency of $20,000.00 to cover potential price increases;
RESOLVED, That $495,506.71 be appropriated to the FY2025 Fleet Services Fund Operations and Maintenance expenditure budget with the source of revenue being listed as a capital contribution from the FY2025 Public Works Major Streets Fund Operations and Maintenance budget;
RESOLVED, That funds for the purchase of this new swap loader chassis and five bodies in the amount of $495,506.71 comes from the FY2025 Fleet Services Fund Operations and Maintenance budget with funds, including any approved contingency, to be available without regard to fiscal year;
RESOLVED, That the equipment being replaced (nos. 4558 and 4688) be sold at the next City vehicle auction after the equipment is removed from service; and
RESOLVED, That the City Administrator be authorized to take the necessary actions to implement this resolution.