Item: CITY OF DEERFIELD BEACH Request for City Commission Agenda Agenda Date Requested: June 18, 2013 Contact Person: Chad Grecsek, Assistant Director of Environmental Services Description: Authorization to purchase three (3) garbage and recycling collection trucks from General GMC Truck Sales & Service, Inc. as per ITB #2012-13/21 Fiscal Impact: $775,656 Budget Line Item Number and Title: 450-4051-534-60-41 "Capital Outlay - Automotive Equipment" 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 6.12.13 Signature Date
Memorandum TO: FROM: COPY: Burgess Hanson, City Manager Chad Grecsek, Assistant Director of Environmental Services Charles DaBrusco, Director of Environmental Services Keven Klopp, Assistant City Manager Amanda Shafer, Assistant to City Manager David Santucci, Purchasing Manager Hugh Dunkley, Finance Director DATE: June 5, 2013 RE: Authorization to purchase three (3) garbage and recycling collection trucks from General GMC Truck Sales & Service, Inc. as per ITB #2012-13/21 Background The City of Deerfield Beach (City) solid waste and recycling division s (Division) collects residential garbage and recycling from over 41,000 single and multi-family accounts on a weekly basis. Single family residential collections currently consist of twice per week garbage collections, once per week recycling collections and once per week bulk collections. Multi-family collections can vary depending on billed frequency and level of service. In addition to residential services, the Division 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 division operates a total of 62 mixed collection vehicles. As solid waste and recycling collections can be very harsh on collection vehicles, many of the Division 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 7 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 Division requested and was approved funding in the FY 12-13 budget in the amount of $820,343.17 for the purchase of new solid waste and recycling collection vehicles.
Page 2 Purchase of Garbage and Recycling Trucks Garbage and Recycling Collection Trucks in need of replacement Three (3) collection vehicles were targeted to be repaired due to mileage, age, condition, cost of maintenance and other factors. Below are summaries of the vehicles to be replaced: 1. Residential Collection Truck # 134 Lodal Automated Side Loader Age: 9 Years old Original Purchase Price: $174,708.00 Life to Date (LTD) Costs: Maintenance - $153,033.21 Fuel $79,043.92 Mileage: 48,819 Additional Fleet Management Comments: High maintenance costs, low dependability, body rusting through, requires expensive transmission and coolant repairs. 2. Residential Collection Truck # 135 Lodal Automated Side Loader Age: 9 years old Original Purchase Price: $174,708 LTD COSTS: Maintenance $206,277.67 Fuel - $70,779.10 Mileage: 44,332 Additional Fleet Management Comments: High maintenance costs, low dependability, underbody rotted, cab in poor shape, requires further hydraulic repairs. 3. Commercial Collection Truck #182 - Mack/Heil Front Packer Age: 6 years old Original Purchase Price: $197,158.89 LTD Costs: Maintenance: $99,993.71 Fuel: $100,444.81 Mileage: 98,262 Additional Fleet Management Comments: Condition is very poor; Engine is blown and now requires a replacement of approximate cost of $25,000. Currently inoperable. Garbage and Recycling Trucks ITB#2012-13/21 In coordination with the fleet, solid waste, recycling and purchasing divisions, an Invitation to Bid (ITB) was prepared ITB #2012-13/21 for the purchase of garbage and recycling trucks. The ITB was specified to request equipment that is consistent with bodies, chassis and options that the Division is standardizing to. City of Boca Raton fleet division personnel also provided input into the bid and requested additional options specific to their needs to be included in the ITB.
Page 3 Purchase of Garbage and Recycling Trucks The ITB was released on April 26, 2013 and was opened on May 22, 2013. Two (2) sealed bids were received. After review, the purchasing division deemed only one (1) of the bidders responsive General GMC Truck Sales and Service, Inc. with a total price (including requested options) of $775,656. See attached purchasing memo and additional backup pertaining to the procurement process. The bid of $775,656 constitutes a savings of $44,687.17 versus what was budgeted for the purchase of these vehicles. See the attached spreadsheet summarizing the costs of the new collection vehicles. Staff reviewed the Sheriffs contract to determine if there was more favorable pricing available, but was unable to find a like comparison to the specifications in the City s ITB. Historically, many of the City s bids for vehicle purchases have come in under the Sheriffs contract pricing. Recommendation In light of the above, staff recommends the approval of the purchase of three (3) garbage and recycling collection trucks from General GMC Truck Sales and Service, Inc. with a total price (including requested options) of $775,656. 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 the 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. Respectfully Submitted, Chad E. Grecsek Assistant Director of Environmental Services
RESOLUTION NO. 2013/ A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF DEERFIELD BEACH, FLORIDA APPROVING A BID ITB# 2012-13/21 FOR THREE (3) GARBAGE AND RECYCLING TRUCKS, AUTOMATED SIDE LOADER AND FRONT LOADER FOR AN AMOUNT NOT TO EXCEED $775,656.00. WHEREAS, on Friday, April 26, 2013, twenty-four (24) invitation letters were sent to the appropriate registered vendors with the City via e-mail or facsimile; and WHEREAS, one (1) addendum was issued on May 16, 2013, to address vendor questions and to make changes to the bid documents; and WHEREAS, on Wednesday, May 22, 2013, two (2) bids were received by the due date and time required; and WHEREAS, after reviewing the bids, the Purchasing Division determined that one of the bids was non-responsive; and WHEREAS, the apparent low, responsive and responsible bidder was General GMC Truck Sales and Service, Inc. with a total price of $775,656.00; and WHEREAS, the City Commission finds that it is in the best interest of the City to award the bid for three (3) garbage and recycling trucks to General GMC Truck Sales and Service, Inc.; 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 Bid for three (3) garbage and recycling trucks to General GMC Truck Sales and Service, Inc. with a total price of $775,656.00. The Mayor and/or the City Manager are hereby authorized to execute any appropriate documents. Section 3. This Resolution shall become effective immediately upon adoption. PASSED AND ADOPTED THIS DAY OF, 2013. JEAN M. ROBB, MAYOR 1
ATTEST: ADA GRAHAM-JOHNSON, MMC, CITY CLERK Deerfield/Resolutions/Purchasing/Garbage Trucks 2013 2
Solid Waste and Recycling Collection Vehicle Purchase Item Bid Unit Price Units Total Automated Side Loader (ASL) $ 249,790.00 2 $ 499,580.00 Front Loader $ 232,780.00 1 $ 232,780.00 Base Bid Total $ 732,360.00 FY 12/13 Budget $ 820,343.17 Difference vs. Budget $ (87,983.17) Bid Options RFID Readers $12,500.00 3 $37,500.00 ASL Extended Body $1,548.00 2 $3,096.00 ASL Camera $300.00 2 $600.00 Backup Camera with DVR $700.00 3 $2,100.00 Bid Options Total $43,296.00 Bid Total with Options $ 775,656.00 Difference vs. Budget $ (44,687.17)