Title
Resolution to Ratify City Administrator Approval of Emergency Purchase Order, Appropriate Funds from Solid Waste Fund's Fund Balance ($74,200.00), and Approve a Contract with Bell Equipment Company, for Rental of Refuse Trucks ($438,926.00) (ITB # 4401) (8 Votes Required)
Memorandum
The attached resolution seeks ratification of the City Administrator's authorization of an emergency purchase order pursuant to the authority granted him under Section 1:317(1) of the Ann Arbor City Code, authorizes the appropriation of funds, and authorizes a 31-month contract in the amount not to exceed $438,926.00 with Bell Equipment Company, for the rental of refuse trucks.
On Friday, August 28, 2015, bids for the rental of rear loading refuse trucks for compost collection were opened in response to ITB #4401. The ITB was for a contract to rent eight 25 yard rear loading refuse trucks, for eight weeks minimum each, for three years with the option to renew the contract for three additional one year periods. One bid was received, from Bell Equipment Company.
Due to a shortage of rental trucks in the market place, the trucks we require for the fall compost collection this year were not available. Bell Equipment offered an alternative for this fall's rental. Because of a strong relationship between Bell Equipment and New Way Manufacturing, Bell Equipment was able to source six brand new 20 yard trucks from New Way Manufacturing. These are trucks New Way Manufacturing have built but have not yet sold. The rental for these trucks will be at a substantially higher cost than we have paid in the past due to the fact that these are new trucks, a three month minimum commitment requirement and the overall market shortage of rental trucks. The second and future years of the contract are more in line with our anticipated costs.
In addition, New Way was unable to commit that these trucks will be available for our use this fall without receiving a purchase order for the three...
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