Item: CITY OF DEERFIELD BEACH Request for City Commission Agenda Agenda Date Requested: January 14, 2014 Contact Person: Chad Grecsek, Director of Recycling and Solid Waste Management Description: Authorization to purchase four (4) garbage and recycling collection trucks from GMC Truck Sales and Service d/b/a Volvo Trucks of Palm Beach via the NJPA Contract 060612-ESG. Fiscal Impact: $1,356,477 Budget Line Item Number and Title: 450-4051-534-60-41 "Capital Outlay - Automotive Equipment" 450-4051-534-60-43 "Capital Outlay - Other Machinery and Equipment", 450-4051-534-39-99 "Contingency", 450-4051-534-38-05 "Diesel Fuel" and 450-4054-534-38-05 "Diesel Fuel". Required Attachment: A Cover Memo from the Department Head to the City Manager further describing the request and providing back-up information and documents. THIS SECTION RESERVED FOR PROCESSING OF THE REQUEST Ordinance X Resolution Consent Agenda Agenda Item Type Presentation Written Request Public Hearing Public Hearing Second Reading Quasi-Judicial Public Hearing X General Item Comments: ITEM APPROVED FOR THE AGENDA: krk 12/27/13 Signature Date
DEPARTMENT OF RECYCLING & SOLID WASTE MANAGEMENT Memorandum TO: FROM: COPY: Burgess Hanson, City Manager Chad Grecsek, Director of Recycling and Solid Waste Management Keven Klopp, Assistant City Manager Amanda Shafer, Assistant to City Manager David Santucci, Purchasing Manager Hugh Dunkley, Finance Director John Rencher, Fleet Manager DATE: December 18, 2013 RE: Authorization to purchase four (4) garbage and recycling collection trucks from GMC Truck Sales and Service d/b/a Volvo Trucks of Palm Beach via the NJPA Contract 060612-ESG in the amount of $1,356,477. Background The City of Deerfield Beach (City) Department of recycling and solid waste management (Department) collects residential garbage and recycling from over 41,000 single and multi-family accounts on a weekly basis. In addition to residential services, the Department also collects commercial garbage and recyclables from over 4,200 business accounts with schedules that also vary depending on billed frequency and levels of service. A roll-off operation also exists to service debris disposal needs for construction and demolition projects that require larger containers and consists of more than 300 accounts with over 3,000 pulls annually. In order to service the City s solid waste and recycling collection customers, the Department operates a total of 62 mixed collection vehicles with anywhere from 30 40 trucks on the road daily. As solid waste and recycling collections can be very harsh on collection vehicles, many of the Department s trucks are aging and in need of significant repairs to remain operational. The industry suggests that most solid waste and recycling collection vehicles typically have a useful life of 8 years or less due to the harsh conditions they operate under. The continued operation of vehicles beyond their useful life can result in higher maintenance costs and increased down time which causes impacts to service delivery and increased operational costs. In light of the above, the Department requested and was approved funding in the FY 13-14 budget in the amount of $1,285,042 for the purchase of new solid waste and recycling collection vehicles.
Page 2 Purchase of Garbage and Recycling Collection Trucks Garbage and Recycling Collection Trucks in need of replacement Six (6) collection vehicles were targeted to be replaced due to mileage, age, condition, cost of maintenance and other factors. Of the six (6) vehicles targeted for replacement, four (4) vehicles will not be replaced due to operational changes and efficiencies that the Department has made by right-sizing operations, reducing routes and taking trucks off the road. Two (2) of the four (4) vehicles not being replaced have already been taken out of service and will be auctioned off. The attached memo from the fleet manager provides an in-depth analysis regarding the proposed vehicles purchases, condition of the existing vehicles and justification to replace them. Compressed Natural Gas The solid waste industry is moving towards the utilization of compressed natural gas (CNG) for its collection vehicles due to the following benefits: 1. Cheaper than diesel: approximately $1 - $2 per gallon cheaper 2. Trucks run cleaner: up to 30% reduction in green house gases compared to diesel 3. Trucks run quieter 4. Domestic stable source of fuel: Currently 98% of natural gas servicing the US is domestically produced 5. Reduced maintenance costs Currently our collection vehicles are averaging a fuel usage of approximately 4,000 gallons of diesel fuel annually costing approximately $15,000 in fuel per truck per year. Using current CNG pricing and our existing fuel usage, it would cost approximately $5,000 per truck per year in fuel costs or translate to a savings of approximately $10,000 per truck per year. This constitutes a savings of approximately $80,000 over the expected life of collection truck (8 years) vs. an existing truck using diesel fuel or $320,000 for the four (4) proposed collection vehicles. Additionally, the State of Florida is anticipated to make available rebates for the purchase of CNG collection vehicles in the amount of $25,000 per unit or $100,000 for the four (4) proposed units. A CNG unit adds approximately $40,000 to the initial purchase price of each truck. That cost minus the State rebate results in a net of $15,000 in additional cost per truck. After applying the rebate and factoring in the fuel savings, the return on investment for the CNG unit is approximately 18 months. State and Federal clean air laws require diesel engine vehicles utilize new clean air technologies which necessitates the fleet management division to purchase special diesel exhaust fluid (DEF). Reducing the amount of collection vehicles running on diesel will also reduce the costs of purchasing DEF and preclude the need to install a DEF dispenser. There currently exists at least one retail CNG fueling station in close proximity to where our collection vehicles dispose of their materials that could be utilized by the four (4) new CNG collection vehicles to fuel.
Page 3 Purchase of Garbage and Recycling Collection Trucks Staff will work with the purchasing Department to prepare a bid for CNG fueling to provide the best option for the City in relation to location and price. Staff is in preliminary discussions with CNG companies regarding the feasibility of installing a fueling station at the City Central Campus location which may result in additional cost savings. The new collection vehicles will also be outfitted with specialized cameras which will improve safety and efficiency and allow certain routes to operate without a secondary employee resulting in additional savings and efficiencies. NJPA Contract Justification Staff with the City s purchasing division evaluated the existing contract options available to the City for the purchase of these collection vehicles. Those options consist of the National Joint Powers Association (NJPA) contract and the Florida Sheriff s Association contract. The cost difference between using the Florida Sheriffs Association (FSA) contract over the NJPA contract is $6,620 or 0.49% of the total purchase of $1,356,477. See Table 1 below for a summary of cost comparisons. Table 1 NJPA and FSA Contract Pricing Summary Pricing Summary NJPA Contract FSA Contract Difference $ Difference % Cost for Units 86, 89, 91 $ 985,219 $ 979,437 $ 5,782 0.59% Cost Savings for Unit 135 $ 371,258 $ 370,420 $ 838 0.23% Total Cost Savings for four units $ 1,356,477 $1,349,857 $ 6,620 0.49% The NJPA contact is the preferred option and allows these vehicles to be purchased from General GMC of Palm Beach, FL. This vendor is the closest to the City and provides warranty service and customer service support than other AutoCar dealers on the FSA purchasing contract. The Fleet Management Division has also had a long and favorable relationship with this vendor for many years and has provided the City with excellent service during that time. In light of the above, the minimal cost differential between the NJPA and FSA contracts is not significant enough to justify the utilization of the FSA contract and a non preferred dealer. See attached memo from the purchasing department and the fleet management division which details the justification for the use of the NJPA contract as well as the cost of the new units and options. Recommendation Although the recommended purchase for the four (4) collection vehicles is $71,435 more than what was budgeted for by the Department, the true cost of the vehicles factoring in anticipated rebates and fuel savings is estimated at almost $300,000 less than what was budgeted. See the attached memo from the fleet management division Table 7 Cost Differential Justification for additional details.
Page 4 Purchase of Garbage and Recycling Collection Trucks The additional $71,435 needed to purchase these vehicles will be obtained by not purchasing the budgeted DEF dispenser ($30,000), estimated fuel savings and Department contingency funds. In light of the above, staff recommends the approval of the purchase of four (4) garbage and recycling collection trucks from General GMC Truck Sales and Service, Inc. with a total price (including requested options) of $1,356,477. Once the new trucks arrive and the older vehicles (that are currently in service) are taken out of service, they will be auctioned off. Staff recommends the proceeds of the sale of any solid waste or recycling auctioned vehicles be placed in a solid waste and recycling capital equipment replacement fund so that the routine replacement of collection vehicles can be planned and based upon the useful life of the equipment which will substantially reduce maintenance costs in the future as well as reduce the costs that are currently incurred by financing vehicle purchases. Respectfully Submitted, Chad E. Grecsek Director of Recycling and Solid Waste Management
RESOLUTION NO. 2014/ A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF DEERFIELD BEACH, FLORIDA APPROVING THE PURCHASE OF FOUR (4) GARBAGE AND RECYCLING COLLECTION TRUCKS FROM GMC TRUCK SALES AND SERVICE D/B/A VOLVO TRUCKS OF PALM BEACH VIA THE NJPA CONTRACT 060612-ESG IN THE AMOUNT OF $1,356,477. WHEREAS, the City of Deerfield Beach wishes to utilize the National Joint Powers Alliance Bid #060612-ESG awarded to GMC Sales and Service d/b/a Volvo Trucks of Palm Beach in the amount of $1,356,477; and WHEREAS, although there is another available contract and vendor who can meet the required truck specifications, the cost differential is less than a 0.5% and Staff has indicated two main reasons to substantiate the NJPA contract over the other vendor, i.e., the location of Volvo Trucks of Palm Beach is fifteen (15) miles closer than Palmetto Ford Truck Sales located in Miami and that past experience and references indicate the recommended vendor has superior service and support; and WHEREAS, the City Commission finds that it is in the best interest of the City to utilize the National Joint Powers Alliance Bid #060612-ESG which yielded a price that is beneficial to the City of Deerfield Beach; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF DEERFIELD BEACH, FLORIDA, AS FOLLOWS: Section 1. The above referenced Whereas clauses are true and correct and made a part hereof. Section 2. The City Commission does hereby approve the utilization of the National Joint Powers Alliance Bid #060612-ESG awarded to GMC Sales and Service d/b/a Volvo Trucks of Palm Beach in the amount of $1,356,477. The City Manager or designee is hereby authorized to execute the necessary documents. Section 3. This Resolution shall become effective immediately upon adoption. PASSED AND ADOPTED THIS DAY OF, 2014. JEAN M. ROBB, MAYOR 1
ATTEST: ADA GRAHAM-JOHNSON, MMC, CITY CLERK Deerfield/Resolutions/Purchasing/National Joint Powers Solid Waste Trucks 2
FLEET MANAGEMENT DIVISION Memorandum TO: THRU: FROM: COPY: Burgess Hanson, City Manager Chad Grecsek, Director of Recycling and Solid Waste Management John L. Rencher, Fleet Manager Keven Klopp, Assistant City Manager Amanda Shafer, Assistant to City Manager David Santucci, Purchasing Manager Hugh Dunkley, Finance Director DATE: December 18, 2013 RE: Authorization to purchase of three (3) MY 2014 AutoCar Cab and Chassis with Heil 28 CuYD Front End Loader Bodies and one (1) MY 2014 AutoCar Cab and Chassis with Heil 28 C uyd Front End Loader Boy with Curotto Can side loader attachment from General GMC Truck Sales and S ervice dba Volvo Trucks of Palm Beach, West Palm Beach, FL, via the NJPA Contract 060612-ESG. Background The FY 2014 City Budget included the purchase of six (6) new vehicles for the Department of Recycling and Solid Waste. A summary of the purposed purchase is contained in Table 1 below. Table 1 Proposed Vehicle Purchases Type of Purchase Vehicle Unit Vehicle Description Number Replacement 49 1997 Ford F8800 K-Pack Container Truck Replacement 86 2002 Mack MR68 Heil 40 CuYd Front Loader Replacement 89 2003 Mack MR68 Heil 40 CuYd Front Loader Replacement 91 2003 Mack MR68 Heil 40 CuYd Front Loader Replacement 135 2004 Loadal C275 EVO T28 Automatic Side Loader (ASL) Replacement 182 2003 Mack MR68 Heil 40 CuYd Front Loader Budgeted Cost $222,000. $222,000 $222,000 $222,000 $222,000 $175,000. Total 6 Units $1,285,000.
Page 2 Purchase of Department of Recycling and Solid Waste Vehicles Replacement Justification The six vehicles selected for replacement based on the following American Public Works Association (APWA) nationally benchmarked guidelines. Weighted point factors in the scoring includes; age in service, miles driven, type of service environment, reliability, operation and maintenance costs, and current mechanical condition. Refer to Table 2 below. Table 2 Vehicle Replacement Analysis and Summary Scoring Guidelines Points Condition Vehicle Condition Assessment <18 I Excellent 18 to 22 II Good 23 to 27 III 28 or more IV Requires replacement during current fiscal year. Needs immediate replacement due to safety concerns or catastrophic mechanical failure. Table 3 below contains the replacement analysis and scoring for each individual vehicle budgeted for replacement in FY 2014. Table 3 Individual Vehicle Replacement Analysis and Summary Scoring Vehicle Unit Number Points Condition Vehicle Condition Assessment 49 55 IV 86 69 IV 89 69 IV 91 70 IV 135 52 IV 182 44 IV Needs immediate replacement due to safety concerns or catastrophic mechanical failure. Needs immediate replacement due to safety concerns or catastrophic mechanical failure. Needs immediate replacement due to safety concerns or catastrophic mechanical failure. Removed from service on 9/1/2013 due to catastrophic mechanical failure. Needs immediate replacement due to safety concerns or catastrophic mechanical failure. Needs immediate replacement due to safety concerns or catastrophic mechanical failure. Needs immediate replacement due to safety concerns or catastrophic mechanical failure. Removed from service on 12/28/2012 due to catastrophic engine failure. Appendix 1 contains a completed Lifecycle Cost Analysis (LCA) chart and Vehicle Replacement Analysis and Summary for all vehicles budgeted for replacement as shown in Table 3. Vehicle Selection and Pricing Refer to Table 4 and Table 5 below for individual unit pricing including base model and options costs comparing the NJPA Contract with the FSA Contract.
Page Purchase of Department of Recycling and Solid Waste Vehicles Procurement Information Selected Vendor: General GMC Vendor Info: Bill Brockmeier, 561-686-8906 Unit description: Source: AutoCar ACX64 with Heil Half/Pack Front End Loader 28 CuYd with 12 CuYd Hopper and Curotto Can NJPA Contract Number: 060612-ESG Commodity Code: NA Specification: Q00119076 & FEL-Curotto Ready 11-1-2013 Expires: 7/17/2014 Replaces: Unit 135 Equipment Class: HVY Department: Funding: 450-4051-534-60-41 Recycling and Solid Waste Management Selected Vendor: Vendor Info: Unit description: Source: Contract Number: Commodity Code: Specification: Expires: Replaces: Equipment Class: Department: Funding: Palmetto Ford Truck Sales, Inc David Yglesias AutoCar ACX64 with Heil Half/Pack Front End Loader 28 CuYd with 12 CuYd Hopper and Curotto Can Florida Sheriffs Association (FSA) 13-11-094 NA #14 9/30/2014 Unit 135 HVY Recycling and Solid Waste Management 450-4051-534-60-41 Vehicle Specifications and Pricing NJPA Pricing FSA Pricing Order Qty Description Base Vehicle Type Unit Price Extended Amount Unit Price Extended Amount 1 1 MY 2014 AutoCar ACX64 CNG Engine. Refer to attached quotations from General GMC. Heil Half/Pack Front End Loader 28 CuYd with 12 CuYd Hopper and Curotto Can. Refer to attached quotations from Heil. Exterior/Interior $ 156,175.29 $ 156,175.29 $ 151,035.00 $ 151,035.00 136,032.00 136,032.00 136,032.00 136,032.00 1 Exterior: Single Piant Color - Dupont Imron 5000 Included Included Included Included 1 Interior: Standard Included Included Included Included Standard Options 1 Curotto Ready Package and Curroto Can Assembly Included Included Included Included 1 Decel Valve Included Included Included Included 1 Hopper Seal Kit Included Included Included Included 1 Remote Two Button ControlAutocover on Curotto Included Included Included Included 1 Autocover on Curotto Included Included Included Included 1 Peterson Multi-Function Lights Included Included Included Included 1 Rear Caution Decal Included Included Included Included 1 Cab Protector Riser Manual Jack Included Included Included Included 1 Service Hoist Included Included Included Included 1 Pump: Front Mount Vane Pump Included Included Included Included 1 Mounting Full Body Included Included Included Included 1 Lights: Hopper Work Light with in Cab Switch Included Included Included Included 1 Hopper Floor Overlay Contractor s Package 3/16 Included Included Included Included 1 Camera 4: Third Eye Camera Tailgate Mounted with Monitor w/alley Cams Included Included Included Included 1 Freight from Ft. Payne Included Included Included Included 1 Tool Box- Bumper Mounted Included Included Included Included 1 Warranty: Total (1) One Year Included Included Included Included Specified Options 1 Curotto Can Unit 20,671.94 20,671.94 20,672.00 20,672.00 1 Preview Backsafe System 5,500.00 5,500.00 5,500.00 5,500.00 1 5 Year Cylinder Warranty 5,500.00 5,500.00 5,500.00 5,500.00 1 CNG Installation 5,065.00 5,065.00 5,865.00 5,865.00 1 60 DGE Transverse CNG Tanks 34,516.00 34,516.00 35,516.00 35,516.00 1 Sonrai Systems RIFD Reader System 12,500.00 12,500.00 12,500.00 12,500.00 Pricing Summary 1 Total Chassis and Body w/options $ 375,960.23 $ 375,960.23 $ 372,620.00 $ 372,620.00 1 Credit for Good Faith (2,200.00) (2,200.00) (2,200.00) (2,200.00) 1 Credit For FMM from AutoCar (2,502.00) (2,502.00) - - Grand Total for Three (3) Units $ 371,258.23 $ 371,258.23 $ 370,420.00 $ 370,420.00 CostSavings using FSA Contract $838.23 Budget vs. Actual Purchase Cost Summary Quantity Description Unit Extended Unit Extended Price Amount Price Amount 1 Budgeted Total $ 222,000.00 $ 222,000.00 $ 222,000.00 $ 222,000.00 1 Purchase Total 371,258.23 371,258.23 370,420.00 370,420.00 Differrence Purchase vs. Budget: Under/(Over) (149,258.23) (149,258.23) (148,420.00) (148,420.00) Pricing Summary NJPA FSA Contract Contract Difference $ Difference % Cost Savings for Unit 135 using FSA Contract $ 371,258 $ 370,420 $ 838 0.23%
Page Purchase of Department of Recycling and Solid Waste Vehicles Procurement Information NJPA Pricing FSA Pricing Selected Vendor: General GMC Selected Info: Bill Brockmeier, 561-686-8906 Unit description: Source: AutoCar ACX64 with Heil Half/Pack Front End Loader 28 CuYd with 12 CuYd Hopper NJPA Contract Number: 060612-ESG Commodity Code: NA Specification: Q00119077 & FEL-NJPA-2014 11-1-2013 Expires: 7/17/2014 Replaces: Unit 86, 89, 91 Equipment Class: HVY Department: Funding: 450-4051-534-60-41 Recycling and Solid Waste Management Selected Vendor: Vendor Info: Unit description: Source: Contract Number: 13-11-094 Commodity Code: Specification: Expires: Replaces: Equipment Class: Department: Palmetto Ford Truck Sales, Inc David Yglesias AutoCar ACX64 with Heil Half/Pack Front End Loader 28 CuYd with 12 CuYd Hopper and Florida Sheriffs Association (FSA) NA #14 9/30/2014 Unit 135 HVY Recycling and Solid Waste Management Funding: 450-4051-534-60-41 Vehicle Specifications and Pricing Order Qty Description Base Vehicle Type Unit Price Extended Amount Unit Price Extended Amount 3 3 MY 2014 AutoCar ACX64 CNG Engine. Refer to attached quotations from General GMC. Heil Half/Pack Front End Loader 28 CuYd with 12 CuYd Hopper. Refer to attached quotations from Heil. Exterior/Interior $ 155,156.20 $ 465,468.60 $ 148,977.00 $ 446,931.00 117,571.07 352,713.21 177,502.00 532,506.00 3 Exterior: Single Piant Color - Dupont Imron 5000 Included Included Included Included 3 Interior: Standard Included Included Included Included Standard Options 3 Service Hoist Included Included Included Included 3 Pump: Front Mount Vane Pump Included Included Included Included 3 Mounting Full Body Included Included Included Included 3 Lights: Hopper Work Light with in Cab Switch Included Included Included Included 3 Hopper Floor Overlay Contractor s Package 3/16 Included Included Included Included 3 Camera 4: Third Eye Camera Tailgate Mounted with Monitor w/alley Cams Included Included Included Included 3 Freight from Ft. Payne Included Included Included Included 3 Tool Box- Bumper Mounted Included Included Included Included 3 Warranty: Total (1) One Year Included Included Included Included Specified Options 3 Preview Backsafe System 5,550.00 16,650.00 5,550.00 16,650.00 3 5 Year Cylinder Warranty 2,750.00 8,250.00 2,750.00 8,250.00 3 CNG Installation 5,065.00 15,195.00 5,865.00 17,595.00 3 60 DGE Transverse CNG Tanks 34,516.00 103,548.00 35,516.00 106,548.00 3 Sonrai Systems RIFD Reader System 12,500.00 37,500.00 12,500.00 37,500.00 Pricing Summary 3 Total Chassis and Body w/options $ 333,108.27 $ 999,324.81 $ 328,679.00 986,037.00 3 Credit for Good Faith (2,200.00) (6,600.00) (2,200.00) (6,600.00) 3 Credit For FMM from AutoCar (2,502.00) (7,506.00) - - Grand Total for Three (3) Units $ 328,406.27 $ 985,218.81 326,479.00 $ 979,437.00 CostSavings using FSA Contract $ 1,927.27 $ 5,781.81 Budget vs. Actual Purchase Cost Summary Quantity Description Unit Extended Unit Extended Price Amount Price Amount 3 Budgeted Total $ 222,000.00 $ 666,000.00 $ 222,000.00 $ 666,000.00 3 Purchase Total 328,406.27 985,218.81 326,479.00 979,437.00 Differrence Purchase vs. Budget: Under/(Over) (106,406.27) (319,218.81) (104,479.00) (313,437.00) Pricing Summary NJPA FSA Contract Contract Difference $ Difference % Cost Savings for Units 86, 89, 91 using FSA Contract $ 985,219 $ 979,437 $ 5,782 0.59% Cost Savings for Unit 135 using FSA Contract $ 371,258 $ 370,420 $ 838 0.23% Total Cost Savings for four units using FSA Contract $ 1,356,477 $ 1,349,857 $ 6,620 0.49%
Page Purchase of Department of Recycling and Solid Waste Vehicles NJPA Contract Justification With the approval of the City s Purchasing Department these vehicles will be pur chased using the National Joint Powers Association (NJPA) contract. This contact was chosen to allow these vehicles to be purchased from General GMC of Palm Beach, FL. This vendor is the closest and provides the best warranty service and customer service support than other AutoCar deals on any available purchasing contract. The Fleet Management Division has had a long and favorable relationship with this vendor for many years and has provided the City with excellent service during that time. The cost difference between using the FSA contract over the NJPA contract is only $6,620 or 0.49% of the total purchase of $1,356,477. This difference in total purchase price would not justify using a contract that would allow the City to purchase the Vehicles from General GMC of Palm Beach, FL. Table 6 NJPA and FSA Contract Pricing Summary Pricing Summary NJPA Contract FSA Contract Difference $ Difference % Cost Savings for Units 86, 89, 91 using FSA Contract $ 985,219 $ 979,437 $ 5,782 0.59% Cost Savings for Unit 135 using FSA Contract $ 371,258 $ 370,420 $ 838 0.23% Total Cost Savings for four units using FSA Contract $ 1,356,477 $1,349,857 $ 6,620 0.49%
Page Purchase of Department of Recycling and Solid Waste Vehicles Vehicle Cost Justification For the cost differential justification for purchasing more expensive CNG fuel vehicles refer to Table 6 below. Table 7 Cost Differential Justification Type of Purchase Vehicle Unit Number Replacement 49 Replacement 86 Replacement 89 Replacement 91 Replacement 135 Replacement 182 Vehicle Description 1997 Ford F8800 K-Pack Container Truck 2002 Mack MR68 Heil 40 CuYd Front Loader 2003 Mack MR68 Heil 40 CuYd Front Loader 2003 Mack MR68 Heil 40 CuYd Front Loader 2004 Loadal C275 EVO T28 Automatic Side Loader (ASL) 2003 Mack MR68 Heil 40 CuYd Front Loader Budgeted Cost Actual Cost Cost Difference $222,000. $0. $222,000 222,000. 328,406 (106,406) 222,000. 328,406 ($106,406) 222,000. 328,406 (106,406) 222,000. 371,348 (149,259) 175,000. $0 175,000 Comment Not Replaced Not Replaced Subtotal $1,285,000. $1,356,477 ($71,477) Equipment Diesel Exhaust Fluid Dispenser 30,000. $0. 30,000. Not Purchased Subtotal $1,315,000. $1,356,477 ($41,477) Anticipated State of Florida Rebate for purchase of CNG vehicles of $25,000 per unit. $25,000 x 4 units = $100,000 Fuel savings from using CNG instead of diesel fuel over the service life of the new vehicles. $9,606. for 8 years = $76,848 per unit. Total four 4 units = $307,392. NOTE: Average fuel use for 1 year = 4,365 gallons. Average cost of diesel fuel = $3.45 per gallon. Average cost of CNG = $1.25 per DGE (diesel gallon equivalent). ROI on using CNG will be realized within the first 24 months of service. Total true cost of vehicles over their 8 year service life expectancy due to State of Florida rebate and use of CNG fuel. $100,000 $307,392. $365,915
Page Purchase of Department of Recycling and Solid Waste Vehicles Recommendation Staff recommends for Commission approval the purchase of three (3) MY 2014 AutoCar Cab and Chassis with Heil 28 CuYD Front End Loader Bodies and one ( 1) MY 2014 AutoCar Cab and Chassis with Heil 28 CuYD Front End Loader Boy with Curotto Can side loader attachment from General GMC Truck Sales and S ervice dba Volvo Trucks of Palm Beach, West Palm Beach, FL, via the NJPA Contract 060612-ESGin the amount of $1,356,477.04. Respectfully Submitted, John L. Rencher Fleet Manager Fleet Management Division 7Appendix 1
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TO: FROM: FOR: Chad Grecsek, Director of Recycling and Solid Waste David Santucci, Purchasing Manager Commission Approval of Piggyback Contract DATE: December 18, 2013 RE: National Joint Powers Alliance (NJPA) Contract # 060612-ESG After reviewing your procurement requirement for the garbage/recycling trucks and in consideration of the City s available options, it is my opinion that the most cost effective and operationally efficient method of procurement is to piggyback the NJPA Contract awarded to Environmental Services Group (ESG). ESG produces the Heil line of truck chassis and related equipment contemplated by your Fleet Maintenance Division. The local authorized vendor for Heil is General GMC Truck Sales and Services d/b/a Volvo Trucks of Palm Beach. There is another available contract and vendor who can meet the required truck specifications. The Contract is the Florida Sheriff s Association (FSA) contract that was awarded to Palmetto Ford Truck Sales, Inc. The (FSA) contract price is $6,620.04 less than the recommended contract, which is less than a 0.5% cost differential. You ve indicated two main reasons to substantiate the NJPA contract over the FSA contract, which I support. 1. Warranty service and repair will require the trucks to be taken to the dealer. The location of Volvo Trucks of Palm Beach is fifteen (15) miles closer than Palmetto Ford Truck Sales located in Miami. Because of the Miami traffic, the driving time to Palmetto Ford Truck Sales is double of what it will be to drive to Volvo Truck Sales; thirty (30) minutes as opposed to one (1) hour one-way. 2. Your department has represented that past experience and references indicate the recommended vendor has superior service and support. With an investment as large as this, it is important to look at total cost of ownership and best value procurement methodology. With service and support being a significant consideration in determining best value for this asset with a life expectance of approximately eight (8) years and requiring significant upkeep, your department s findings must be considered. The required contract documents are on file and available for review. Included with this memo is a summary of the NJPA procurement process and award. DS Att.