HomeMy WebLinkAbout _ 4.11(a)--Approve and Authorize the Purchase of Waste Handling Equipment Using Sourcewell and HGACBuy
CITY OF REDDING
REPORT TO THE CITY COUNCIL
Recommendation
Approve and authorize the purchase of residential carts, commercial containers, lids and roll off
boxes, on an as needed basis, utilizing the Sourcewell and HGACBuy Cooperative contract
pricing in a total amount not-to-exceed $1,284,150 for the City of Redding Solid Waste Utility
for Fiscal Year 2023-2024 and Fiscal Year 2024-2025.
Fiscal Impact
For Fiscal Year 2023-24 ($575,000) and Fiscal Year 2024-25 ($600,000), the Solid Waste Utility
(Utility) budgeted $1,175,000 combined for the replacement of residential carts, roll off boxes,
commercial containers, organic containers, lids, and other parts. In addition, the Utility carried
forward $109,150 in unspent funds that were earmarked for this same purpose from Fiscal Year
2022-23. The above-stated amounts were approved during the budget process, therefore, there
are no new fiscal impacts.
Alternative Action
The City Council (Council) may choose not to authorize the purchase using the Sourcewell and
HGACBuy cooperative agreements and contract pricing, and direct staff to use the City of
Redding’s (City) bid process, which would result in delaying the acquisition of the additional
carts, containers, and roll off boxes and increase staff time utilized for such purchases without an
overall cost savings.
MEETING DATE: July 18, 2023
ITEM NO. 4.11(a)
FROM:
***APPROVED BY***
caukland@ci.redding.ca.us
btippin@cityofredding.org
SUBJECT: 4.11(a)--Approve and Authorize the Purchase of Waste Handling Equipment
Using Sourcewell and HGACBuy Contract Pricing
Chuck Aukland, Public
Works Director
Report to Redding City Council July 7, 2023
Re: 4.11(a)--Approve and Authorize the Purchase of Waste Handling Equipment Using
Sourcewell and HGACBuy Page 2
Background/Analysis
Currently, the Utility has approximately 105,000 residential carts in service, 2,000 metal and
plastic commercial containers, and 190 roll off boxes. The replacement cost of residential carts is
approximately $75 each and commercial containers range from $400 to $1,900 each depending
on size. The cost for roll-off boxes ranges from $7,000 to $9,000 each to replace. In addition,
there is a need to purchase carts for organics collection per Senate Bill 1383 at a cost of
approximately $220 each and organic commercial containers that range from $700 to $1,200
each. Staff performs maintenance and repairs to carts, containers and roll -off boxes in order to
keep them in service for as long as possible. Repairs include tasks such as replacing the wheels
and/or lids of the residential carts and commercial containers, and also replacing and welding
new bottoms and floors onto roll-off boxes and commercial containers. New carts include a 12-
year warrant y period for the body of the cart and commercial containers include a three-year
warranty on the body. Staff tracks the warranty periods in order to replace carts or containers that
fail prematurely. Eventually, replacements are necessary because containers rust beyond
reasonable repair, residential cart bodies break, carts go missing, catastrophic events occur, and
new building developments are implemented resulting in the need to add or replace containers
and carts.
Waste handling equipment is available under Sourcewell and HGACBuy competitively bid
contracts. Sourcewell and HGACBuy develop national competitive solicitations that meet or
exceed local standards, and offers its members the benefits derived from cooperative purchasing.
Using the Sourcewell and HGACBuy cooperative contract to purchase equipment saves
significant staff time needed to prepare bid specifications and solicit individual quotations from
vendors. The City also receives a significant price discount due to economies of scale realized
through the volume of purchases on a multi-agency cooperative contract.
Due to the total amount that will be expended, staff is seeking Council’s approval for the
purchase of the Utility’s cart and containers products utilizing the Sourcwell and HGACBuy
cooperative agreements. In previous years, these products were purchased from a variety of
vendors including Wastequip through the Sourcewell contract; however, Wastequip has acquired
several different companies that manufacture the majority of products for the solid waste and
recycling industry. Due to these acquisitions and competitive bidding, Wastequip has several
contracts on Sourcewell for products used in the solid waste and recycling industry and would be
a frequently used vendor.
Environmental Review
The purchase of materials and equipment is not a project as defined under the California
Environmental Quality Act, and no further action is required.
Council Priority/City Manager Goals
This agenda item is a routine operational item.