Title
Resolution to Amend the Fleet and Facility FY10 Budget and Appropriate Funds ($397,194.00) to Purchase of Four Automated Side Load, Hydraulic Hybrid Refuse Trucks for $1,156,380.00 (8 Votes Required)
Memorandum
The attached resolution authorizes the purchase of four 2010 Peterbilt model 320 truck chassis equipped with a hydraulic hybrid system and Labrie Automizer Right Hand automatic packer bodies. Each completed truck will cost $289,095.00, for a total amount of $1,156,380.00, and will be purchased from Fredrickson Supply of Grand Rapids, MI with funds from the approved Fleet and Facility Unit FY 2010 budget and the Solid Waste Fund's fund balance.
These trucks are necessary to implement the new single stream recycling program and have an estimate delivery date of June 15, 2009.
The following resolutions are being submitted to Council as part of the single stream program:
· Contract amendment with FCR for MRF upgrades (passed 11-5-09)
· Purchase of four automated recycling trucks
· Purchase of 30,000 Toter recycling carts
· Contract amendment with Recycle Ann Arbor
· Contract with RecycleBank
The Peterbilt chassis will have a "straight" frame as opposed to a "drop" frame. The straight frame allows the City to order the hydraulic hybrid system but makes the truck unable to be loaded manually. The hybrid system is a Hydraulic Launch Assist (HLA) where the trucks conventional power train is supplemented by the addition of a hydraulic system. The HLA usages energy normally wasted during braking to store hydraulic pressure in accumulator tanks, this pressure is then used to assist in the launch of the vehicle when accelerating away from the stop. The City of Denver has operated a test version of this system and they reported a 25% increase in fuel economy and greater then twice the brake life. Because the truck still has a conventional power train, it can be operated normally even if the HLA system on the truck was to fail.
These units will replace six manual and semi-automated side load trucks currently being used by the Recycle Ann Arbor under its contract with the City of Ann Arbor. All six trucks are used for the current dual-stream recycling collection. The efficiency gained by ordering automated trucks will allow us to reduce the fleet of refuse trucks by two trucks. These new trucks will have automated arms for picking up the single stream containers without the need for the driver to leave the cab of the truck.
These trucks will replace two 2001 manual side loaders, a 2002 manual side loader, a 2003 manual side loader, and two 2004 semi-automated side loaders. These trucks are not equipment to empty the container being utilized for the single stream recycling program.
The Procurement Office of the Financial Services Area solicited bids for replacement recycle trucks and Fredrickson Supply was the sole responsive bidder, offering the Labrie brand packer body on three different chassis and with two frame configurations.
Responses from Fredrickson Supply to our bid were as follows:
Labrie packer on Peterbilt chassis
Straight Frame with hybrid system $289,095.00 ea $1,156,380.00 Total
Labrie packer on Peterbilt chassis
Straight Frame without hybrid system $249,913.00 ea $ 999,652.00 Total
Labrie packer on Mack chassis
Straight Frame without hybrid system $257,475.00 ea $1,029,900.00 Total
Labrie packer on Mack chassis
Drop Frame without hybrid system $276,085.00 ea $1,104,340.00 Total
Labrie packer on Autocar chassis
Drop Frame without hybrid system $273,552.00 ea $1,094,208.00 Total
On August 26, 2009 the Clean Energy Coalition (CEC) announced it was awarded over $14.97 Million in grand funds from the US Department of Energy as part of the American Recovery & Reinvestment Act (AARA). These funds are for the CEC's "Michigan Green Fleet" project to expand the use of alternative fueled and advanced technology vehicles and infrastructure across Michigan. The Fleet and Facility Unit of the Public Services Area partnered with CEC on its application for this grant for the purchase of compressed natural gas powered and hybrid vehicles for the City's fleet.
The CEC is in the process of completing its grantee agreement with the DOE for these funds, once completed it will enter into a sub grantee agreement with the City of Ann Arbor to refund 100% of the additional cost to purchase the hybrid system on these trucks. This cost is $39,182.00 per truck for a total of $156,728.00. To qualify for these funds, the DOE requires that the City have a signed sub grantee agreement with the CEC before a check is issued to the equipment supplier. The CEC expects to have their agreement with the DOE complete before January 1, 2010. Upon completion of their agreement, they will provide the City the required sub grantee agreement which we anticipate bringing to Council for approval by the second regular meeting in February 2010.
The City was anticipating having the sub grantee agreement available for Council action in December, but this was delayed because the CEC and DOE have not yet finalized their agreement. Delaying the approval to purchase these trucks until approval of the sub grantee agreement is made will result in the delivery of these trucks about two months after the single stream recycling program is to begin. The bids from ITB # 4059 will also have expired by that time and require the re-bidding of the trucks.
The Fleet and Facility Unit has $759,206.00 available in its FY 2010 budget for this purchase with the remaining $397,174.00 coming from the Solid Waste Fund's fund balance. When the grant funds from CEC are made available as anticipated, the $156,728.00 will be returned to the Solid Waste Fund.
Fredrickson Supply received Human Rights approval on November 23, 2009.
Staff
Prepared by: Thomas A Gibbons, Financial Analyst - Fleet and Facility Unit
Reviewed by: Matthew J. Kulhanek, Fleet & Facility Manager, Sue F. McCormick, Public Services Administrator
Approved by: Roger W. Fraser, City Administrator
Body
Whereas, The Fleet and Facility Unit needs to purchase four replacement recycle trucks for the City's fleet;
Whereas, The purchase of these trucks improves the efficiency of operation and allows a net reduction of two refuse trucks from the City's fleet;
Whereas, Fredrickson Supply is the sole responsive bidder to Bid # 4059 at a cost of $289,095.00 each for a total cost of $1,156,380.00;
Whereas, $759,206.00 for this purchase is available in the Motor Equipment Fund FY 2010 budget;
Whereas, Adequate funds for this purchase are available in the Solid Waste Fund's fund balance;
Whereas, The City anticipates entering into a sub grantee agreement with the Clean Energy Coalition which will refund $156,728.00 into the Solid Waste Fund; and
Whereas, Fredrickson Supply received Human Rights approval on November 23, 2009;
RESOLVED, That the City Council approves an amendment to the Fleet and Facility Unit FY 2010 budget by appropriating $397,174.00 from the Solid Waste Fund Balance;
RESOLVED, That City Council approve the issuance of a purchase order to Fredrickson Supply for the purchase of four 2010 Peterbilt 320 chassis with Hydraulic Hybrid Systems and Labrie Automizer Right Hand automated packer bodies in the amount of $289,095.00 each for a total of $1,156,380.00 from the FY10 Motor Equipment Fund budget with the funds to be available without regard to fiscal year;
RESOLVED, That all six vehicles being removed from service, 8680, 8686, 8687, 8692, 8681, and 8683, be sold at the next City vehicle auction; and
RESOLVED, That the City Administrator be authorized to take the necessary actions to implement this resolution.