DEPARTMENT: Finance
DEPARTMENT HEAD: Troy Elliott
COUNCIL DISTRICTS IMPACTED: Citywide
SUBJECT:
Brush Tractors and Trailers
SUMMARY:
This ordinance authorizes a contract with Doggett Freightliner of South Texas, LLC that has acquired the franchise dealership from Freightliner of San Antonio, LTD. to provide the Solid Waste Management Department with ten turnkey brush tractors with horizontal, rear discharge brush trailers for a total cost of $1,600,490.00. Funding is available from the Equipment Renewal and Replacement Fund and the Solid Waste Management Department (SWMD) Operating Fund paid through a municipal lease.
BACKGROUND INFORMATION:
Submitted for City Council consideration and action is the attached tabulation of two competitive bids for ten turnkey brush tractors each with horizontal, rear discharge brush trailers. These vehicles will be used by the Solid Waste Management Department for brush and bulky curbside collection from City residents. Four of the brush tractors with horizontal, rear discharge brush trailers are replacement vehicles that will be funded through the City of San Antonio's ERRF Fund and six of the brush tractors with horizontal, rear discharge brush trailers are additional units to the Solid Waste Management Department's fleet that will be funded through the Solid Waste Management Department Operating Fund paid through a municipal lease for a total cost of $1,600,490.00. The low bid was submitted by Freightliner of San Antonio, LTD., who subsequently assigned its interest in this solicitation to Doggett Freightliner of South Texas, LLC, a newly formed entity with corporate headquarters at the same location, who has acquired the franchise dealership. The life expectancy for the brush tractors with horizontal, rear discharge brush trailers is 96 months.
Based on research and knowledge of the industry, the Building and Equipment Services Department did not identify any other viable alternative fueled equipment that would be available to meet the current requirements.
Vehicles and equipment that meet their expected life cycle are usually sold at auction but are sometimes traded-in to the selling dealer. If the Fleet asset is in the Equipment Renewal and Replacement Fund (ERRF) then the proceeds are returned to the fund. The proceeds are then used to purchase new similar vehicles and equipment for the same department that operated the sold fleet asset. The equipment being replaced will be sold.
ISSUE:
The contract will provide the Solid Waste Management Department ten turnkey brush tractors with horizontal, rear discharge brush trailers. These units will be used to provide brush and bulky curbside pick-up throughout the City. Four units will be replacement units to the City's fleet and six units are additional units to the City's fleet.
The life expectancy for these vehicles is 96 months. The brush tractor's cab and chassis have a one year warranty/100,000 miles, engines have a two year/250,000 miles warranty, transmissions have a five year/unlimited miles warranty and the horizontal, rear discharge brush trailers have a one year unlimited miles parts and labor warranty and a five years on the hydraulics.
The Small Business Economic Development Advocacy Ordinance requirements were waived due to the lack of qualified SMWBE's available to provide the goods and services.
The recommended award is the lowest responsive bidder, who is also a local business. Therefore Local Preference Program was not required.
ALTERNATIVES:
The current units scheduled for replacement have met their age and or mileage requirement cycles and are no longer economically feasible to repair. The replacement date is considered the optimum time for replacement as delaying the acquisition could make the unit no longer economically feasible to repair and could lead to the department's inability to provide essential services to the residents of San Antonio. The alternative is to continue to use the vehicles currently available and incur increasing maintenance costs, thus compromising services.
FISCAL IMPACT:
The purchase of these brush tractors each with horizontal, rear discharge brush trailers is for a total cost of $1,600,490.00 and will be funded by the ERRF and the SWMD Operating Fund paid through a Municipal Lease.
The ERRF charges a monthly lease rate to each respective department/fund the entire time a department/fund has possession of a vehicle or equipment. When the vehicle or equipment reaches the end of its life-cycle or the contractually obligated period, the replacement fund provides the financial resources for its like replacement.
The replacement of these units is consistent with the City's vehicle replacement program. Moreover, these new vehicles will be placed in the ERRF upon entry into service.
RECOMMENDATION:
Staff recommends the approval of the contract with Doggett Freightliner of South Texas, LLC, assignee of Freightliner of San Antonio, LTD. for a total amount of $1,600,490.00. This contract is procured on the basis of low bid and a Contracts Disclosure Form is not required.