DEPARTMENT: Finance
DEPARTMENT HEAD: Troy Elliott
COUNCIL DISTRICTS IMPACTED: City Wide
SUBJECT:
Horizontal Type Brush Shredder/Grinder
SUMMARY:
This ordinance authorizes the offer from Bane Machinery, Inc. to provide the Solid Waste Management Department (SWMD) with one Horizontal Type Brush Shredder/Grinder for a cost of $828,823.00. The City will receive $60,000.00 from Bane Machinery for the trade-in of an existing Brush Shredder/Grinder resulting in a net cost of $768,823.00. Funding for this purchase is available from the Equipment Renewal and Replacement Fund (ERRF).
BACKGROUND INFORMATION:
Submitted for City Council consideration and action is the attached tabulation for equipment to provide the SWMD with one Horizontal Type Brush Shredder/Grinder. This purchase will be made utilizing the BuyBoard Cooperative Agreement contract number 424-13. Funding will be provided through the City of San Antonio's Equipment Renewal and Replacement Fund (ERRF) for a cost of $828,823.00. The City will receive $60,000.00 from Bane Machinery for the trade-in of an existing Brush Shredder/Grinder resulting in a net cost of $768,823.00.
This equipment will be used by personnel at the Nelson Gardens and Bitters Brush Recycling Centers. However, the unit will be located at the Bitters facility to grind collected brush into mulch.
Based on thorough research and knowledge of the industry, the Building and Equipment Services Department, Fleet Acquisitions Division, could not identify any viable alternative fueled equipment that would be available to meet the current requirements.
Vehicles and equipment that meet their expected life cycle are sold at auction but are sometimes traded-in to the selling dealer. If the Fleet asset is in the City's fleet replacement program, 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. The replacement of this unit is consistent with the City's vehicle replacement program.
ISSUE:
This contract will provide the SWMD with one Horizontal Type Brush Shredder/Grinder which will be located at the Bitters facility to grind collected brush into mulch. The unit will be a replacement unit to the City's fleet for a cost of $828,823.00. This unit will be purchased from Bane Machinery, Inc. utilizing the Texas BuyBoard contract #424-13 and will be made in accordance with the Texas Local Government Purchasing Cooperative passed on ordinance no. 97097 dated January 30, 2003.
The Texas BuyBoard Cooperative is administered by the Texas Municipal League. All products and services that are part of this cooperative have been competitively bid and awarded by the Cooperative's Board of Trustees based on Texas Statues.
The life expectancy for this equipment is 120 months. This unit is covered by a standard, structural one year warranty with unlimited hours. In addition, the SWMD is purchasing an additional five year or 5,000 hours of full engine warranty.
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.
This contract is an exception to the Local Preference Program.
The Veteran-Owned Business Program does not apply to good/supplies contracts, so no preference was applied to this contract.
ALTERNATIVES:
The unit has met or will meet its age or hours requirement cycles for replacement. 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.
FISCAL IMPACT:
The purchase of this Horizontal Type Brush Shredder/Grinder is for a total cost of $828,823.00 which will be funded from ERRF. However, $60,000.00 will be received from the trade-in model unit #4530, resulting in a net cost of $768,823.00 funded from ERRF.
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.
RECOMMENDATION:
Staff recommends the approval of this contract with Bane Machinery, Inc. for a total cost of $828,823.00. This contract is procured by means of cooperative purchasing and a Contracts Disclosure form is not required.