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_ 4.11(h)--Authorize Sole-Source Procurement for the Refurbishment of Solid Waste Collection Vehicles
GI �" Y � F � � � ° � � � " � � CITY OF REDDING REPORT TO THE CITY COUNCIL MEETING DATE: September 19,2023 FROM: Chuck Aukland, Public ITEM NO. 4.11(h} Works Director ***APPROVED BY*** � ��n � .�.._ s.N,.�� � � � ��� ukl�n�l,H'ciblic Wc�aks L'��reGt ' 9(11/2423 ry ip}�in,�C"i ana � 9,i12/2423 caulcland@ci.redding.ca.us btippin@cityofredding.org SUBJECT: 4.11(h)--Authorize Sole-Source Procurement for the Refurbishment of Solid Waste Collection Vehicles Recommendation Authorize the following actions relative to the sole-source procurement of Solid Waste Collection Vehicle refurbishment services for five existing units in the City of Redding Solid Waste Utility: (1) Approve the sole-source procurement to Terrific Trucks & Equipment using Rolling Stock Funds in an amount not to exceed$910,000; and (2) Find that the action is exempt from review under the California Environmental Quality Act Guidelines,per Section 15301 —Existing Facilities. Fiscal Impact The Solid Waste Utility(Utility) budgets funding for the replacement of trucks and equipment in its Rolling Stock Replacement Fund. Currently, the Utility has an approved budget of$894,000 in Fiscal Year 2023-24 for the replacement of two, solid waste collection vehicles (SWCVs). The cost to refurbish a SWCV with Terri�c Trucks & Equipment (TTE) is estimated to be $175,000 per vehicle. The refurbishment of five vehicles is estimated to cost $875,000 which would result in a significant savings to the Rolling Stock Replacement fiind over the next few years when compared to purchasing new vehicles. Alternative Action The City Council (Council) could choose not to authorize the sole-source procurement to TTE and direct staff to continue efforts to locate and procure only new SWCVs at increased costs and limited availability. The Council may also choose to refurbish trucks in-house using the City of Redding's (City) Fleet Division which would not be cost effective and would have a significant negative impact to the overall productivity of the Fleet Shop. Report to Redding City Council September 23,2023 Re: 4.11(h)--Authorize Sole-Source Procurement for the Refurbishment of Solid Waste Collection Vehicles Page 2 Background/Analysis Currently, the Utility has approximately 35 SWCVs. Availability of new equipment is extremely limited because of the California Air Resource Board's (CARB's) stringent emission requirements and regulations to reduce the use of gas and diesel-powered vehicles as well as industry wide delays from supply chain and labor shortages. These impacts have resulted in significant price increases and delivery times that are nearly two years away from the purchase order issue date. In addition, due to CARB's Advanced Clean F1eet regulation, the City will be required to purchase zero emission (electric or hydrogen powered) vehicles beginning in 2027. By refurbishing vehicles, the expected lifecycle will be extended five to seven years which provides time for further development of technology and infrastructure for alternative fuel- powered vehicles in the solid waste industry. The implementation of electric-powered SWCVs is in the early stages. They are currently less efficient for productivity and cost approximately$800,000 per unit. Due to the loss of production and efficiency it would take three electric-powered vehicles to perform the work of two diesel- powered vehicles. Currently, the City does not have the infrastructure, including the tooling and maintenance shop to support a fleet of electric SWCVs. Similar to electric-power vehicles, the City does not have the infrastructure, including the tooling and maintenance shop to support a fleet of hydrogen powered SWCVs. There are no current fueling stations locally for this type of fuel. Plans for a hydrogen powered engine for heavy d�uty application are expected to be introduced in 2026. As mentioned previously, by refurbishing vehicles, the expected lifecycle will be extended up to seven years which provides time for further development of technology and implementation of this type of fuel in the solid waste ind�ustry. Staff has researched and reached out to several different companies, both local and out of the area, and have determined there are no other refurbishing companies in the Western and Midwestern States that perform the same work to the extent and level of TTE. Every truck that will be refurbished will be CARB compliant and able to remain in operation until the end of its extended life cycle. A significant advantage is the time savings for delivery to the City. The time frame for TTE to refurbish a vehicle is approximately six to eight weeks. In comparison, using the City's Fleet Division would require approximately six months with a cost estimate of $208,000 or the delivery of a new vehicle is estimated to be two-years. The Fleet Division would also need to invest in additional tooling, not currently budgeted. Performing this type of extensive project in- house would greatly reduce the overall output and efficiency of the City's fleet maintenance and repair program affecting other department timelines. With only one available source that can provide the comprehensive services needed, staff is seeking approval of a sole-source procurement for the refurbishment of SWCVs pursuant to the Redding Municipal Code, Section 420.120: L. 3. YVhen there is only one available sou�ce which can supply the subject matter of the contract; and L. 8. T�Vhen, at the deterinination of the City Manager for awards up to two hundred thousand dollars, or upon approval by the City Council for awards over two hundred thousand dollars, good.s o�service.r a�e propo.red to be p�ocured which do not con.rtitute public works project.r. Report to Redding City Council September 23,2023 Re: 4.11(h)--Authorize Sole-Source Procurement for the Refurbishment of Solid Waste Collection Vehicles Page 3 Utilizing the refurbishment services of TTE will result in savings to the Rolling Stock Replacement Fund, reduce the impact of limited to no availability of new diesel-powered units and provide reliable SWCVs while new technology is further evaluated and developed. Staff is requesting to start with five units as a pilot project and will return to Council at a later date with the results of the pilot program and possible further implementation. Envir�onmental Review Staff has reviewed the action and determined that it is categorically exempt from review under California Environment Quality Act, pursuant to Section 15301 — Existing Facilities. Class 1 exemptions include the repair and maintenance of existing mechanical equipment to meet current standards for public health and safety, with no expansion or negligible expansion of use. The existing collection vehicles will be rehabilitated, and returned to the working fleet. The project will result in no expansion of use, and the project has no potential to have a significant effect on the environment. Council Priority/City Manager Goals � Government of the 21st Century — `Be relevant and proactive to the opportunities and challenges of today's residents and workforce. Anticipate the future to make better decisions today." Attachments ^ Front End Loader Quote ^Notice of Exemption ^Side Load Quote Refurbishment Process Overview �`�k��� Terrific Trucks And Equipment Sa/es LLC t� ���` �°�� "The Refurb Kings" 2601 W Jackson �� �,�P�,�a� Phoenix,AZ 85009 602-513-8580 or 833-628-7495 QUOt@ Customer Name City of Redding Date 9/7/2023 Address 6751 Woddrum Circle Order No. City Redding State CA ZIP 96002 Name Paul Clemens Phone 530-224-6207 Qty Unit Price TOTAL � Refurbished Chassis-CS(2010-2015)Autocar Isl/Ism Cummins with Allison 4500 Transmission 20K FrontJ46K Rear $ 159,999.00 $ 159,999.00 Refurbished CS front End Loader-Body TBD Refurbished Chassis Includes Following: Engine Rebuild Kits:Aftermarket New Pistons,New Cylinder Liners,New Main Bearing,New Rod Bearings,Reman Head,New Head Gasket,New Upper/Lower Gaskets,New Cam/Crank Shaft Bearings,Cam/Crank Shaft(repair/replace), Reman Turbo(as necessary).Reman Injectors&Nozzles (as necessary),Block Heaters,Heater Mirrors,Heating and Air Systems(as needed)Font/Rear Axles-Kings Pins, U Joints,Drive Lines,Brakes,Drums,Shoes and 5 Cams(as needed),Tires New Steers 315's&Recap Rears 315's Refurbished Body Includes Following: New Steel-Canopy,Floors,Walls,Tracks,Packer Face,Packer Shoes,Expanded,and Tail Gate.(AR 400/Mild)(as needed) New Pins and Bushings(as needed) New Hydraulic Pump and New Hydraulic hoses and fittings.New tubes(as needed) Rebuilt Valve Body Rebuilt Cylinder Package-Pack,Arm,Fork,Top Door,Tail Gate and Tail Gate Lock New Contro)Box,Joy Stick,Wiring and Installation-Non PLC New LED Lighting Chassis&Body,2 Camera System,and Wiring New Chassis&Body Paint and Signage(Per Customer Specifications)TBD SubTotal $ 159,999.00 DOT inspected,Pre Delivery inspected by third party,copy of inspections to be supplied with final delivery Tag &Title y� - Shipping: $ 4,200.00 Environmental Fee $ 25.00 TOTAL $ 164,224.00 Est. Shipping Phx to Redding, Ca. 931 mi. Notes: 35 %Down required to begin builds -45-60 Day build time ��P�r �TE ,� NOTICE QF EXEMPTIQN To: ❑ Office of Pianning and Research FROM< City of Redding 14d0 Tenth Street,Roam 121 Public Works Department Sacramento, CA 95814 773"Cypress Avenue Redding, CA 96001 � Shasta Couniy Clerk County of Shasta P:t).Box 990880, 1643 Market Street Redding, CA 96094-088Q Project Title: Solid Waste Callection Veliicle Refurbisllment Services Pilot Project Locatian—Speci�c: Reddin� Praject Location—City� Reddin�; Project Location—County. Shasta Description af Project. The Citv of Reddiii�wiil approve a sole-source procurement of Solid Waste Collection Velliele Refurbishment with Terrific Trucks & Equipment (TTE). TTE will refurbish five callection vehrcles durin,� the pilot �eriod By refurbishin�tllese vehicles the expected lifecvcle will be extended up to 7 vears whicli nrovides time far the further developinent af technola�,v and implementatiorx of alternative fuel pawered vehicles in the solid waste industr� Name of Public Ageney Appraving Project:City of Redding Name af Person ar Agency Carrying Out Project:Paul Glemens. Solid Waste Utili , Mana er Exempt Status. (check one) ❑ Ministerial jSectian 21080(b)(I); 1526$] ❑ Declared Emergency [Section 21080(b)(3); 15269(a)] ❑ Emergency Project [Section 21 Q80(b)(4); 15269(b)] ❑ Statutory Exemptions.State code nurnber: ❑ Cornrnon Sense Exemption(This project does not fall within an exempt class,but it can be seen with certainty that there is na possibiliiy that the activity may have a significant effect on the environment{14 CCR I5061[b][3]). 0 Categorical Exemptian.State type and section number: Section 15301. Existin�Facilities � No exceptions apply that would bar tha use of a categorical exemption(PRD 21Q84 and 14 CCR 15300.2): Reasons tivhy project is exernpt: Class 1 exemptions include the repair and maintenance of existing mechanlcal equipznent to meet current standards for public health and safety, with no expansion or nagli ib� le expansion of us�. The existing collection vel�icles will be rehabilitated,and returned to the workin�fleet.The pro,�ect will result in no expansion of use,and the pro,ject has no potential to have a si�nificant effect an the environment. Lead Agency Contact Person: Amber Kellev Telephane: 530.225.4046 If Filed by Applicant: l. Attach certified document of�xernptron finding, 2. Has a z�otice of exemption been fled by the public agency appraving the praject? o Yes ❑No Signature: -�..� Date: �" �`���,.,� Title: Environmental Cam lialice M a er �Signed by Lead Agency Date received for filing at(JPR: ❑ Signed by Applicant �`�k��� Terrific Trucks And Equipment Sa/es LLC t� ���` �°�� "The Refurb Kings" 2601 W Jackson �� �,�P�,�a� Phoenix,AZ 85009 Quote Customer Name City of Redding Date 9/7/2023 Address 6751 Wodrum Circle Order No. City Redding State CA 96002 Name Paul Clemens Phone 530-224-6207 FOB Qty Unit Price TOTAL � Chassis: Refurb (Customer Supplied)2010-2015 Autocar ISM/ISL with Allison 4500 trans 20K Fr $ 169,999.00 $ 169,999.00 � Body: Refurbished:(Customer Supplied)-Residential Body and Automated Side Loader Arm TBD Body)-New Way/McNeilus,Amrep Chassis Refurb includes: Aftermarket Engine Rebuild Kit,New Pistons, New Liners,New Upper/Lower Gaskets, New Main Bearings,New Cam bearings, Reman Head,Reman Radiator, Rebuilt Transmission Reman Turbo(as necessary), New Filter(Oil, Fuel,coolant)New Fluids/Service DPF?DEF Systems Block Heater,Heated Mirrors, New Steer Tires, Recap Rears,New Brakes-Drums,Shoes, and Scams(as necessary),Suspension-King Pins,Springs,Slack Adjusters(as necessary) Refurbished Body&Arm:Spec Mods(Full Eject/Arm Frame MounUService Hoist)-Nor Cha New Steei-(AR&Mild)Walls, Floors,Tracks, Packer,Tailgate(as needed) Cylinders-New/Rebuitl-Packer,Tailgate, Raise, Dump, Reach,Body Raise New Front Mount Pump/Rebuild Valve Body/New Belts Grabbers Arm New Hydraulic Hoses&Fittings, New Hardlines(as necessary) Non PLC Controi Box with Joy Stick, 2 Camera System&Monitor, New LED Lighting Paint:Chassis&Body:(Cah-2-Colors-Customer TBD **35% Down required to begin builds. 45-60 Day Build Time** Subtotal 169,999.00 Tag &Title 175.00 Tax Rate(s) Shipping 4,200.00 TTE TOTA� 174,374.00 Signature Customer Signature Notes: Est. 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Y , �.. � • We specialize in refurbishing Refuse and � ` ��� � � y Recycling Trucks and Equipment. � F ��� �;: • "�ike new" refurbished trucks are the #1 � �s � ��� ��'��� Y N- ` alternative to purchasing new. 4�� � � �� , � � �� ' �� • ��We sell and service �Front Rear and Side ������ � ��� . , ����3�1, � �,�� ;� Loaders along with Container Delivery Units ������ ����}������� � �° �f f " �??� ��� ������s4}� �t'���.. .. y J{ s��t z�rfrCti`�'�s�j�Y�t������.,`ti,v� 1 ^�.r`�� .,� ��and�Roll Offs from most 1�eading s ����,t f�=��t�t������� �,����,����� , �� � n � � ..�ys"=`�� r,U}a����„ ,.,}�.rts���`�?Yl�;aj����Sti�`�,��-,� �il y�i manufactures. ii �� ,��� .. t��,.,, � • Our unique mechanical and fabrication �,���b� �� ���"Refurb" proce��ss results�in an��unma�ched � � *�Like New *Rust Free ��� - quality and craftsrnanship backed by a 90 � � ;Quality Craftsmanship ; day rust free warranty. *Warranty * Fast Delivery " • We average 30 day delivery on average`from ° = contract signing on over 150 different - � � � configurations. ,;, _ , • Save Money, Save Time Today! "The Refurb , Kings" are the prouider of choice for both "HOl'YIe Of ThG' RefUPb KII')g5'� ` privately held/owner operator and publicly ; traded Solid Waste haulers and Recyclers. Y .. .. . .... ...... . � .. a 2` � .. .... . . ......� ... ...... . .. ... � ... . �� Re u r is t e est a ternative � ��� � � �E � % . .. . .. . .. . �.: .. ... . �, " �i .:: .,. .. .. .:,; . . � �y • Why is this important? � ; ,e r r, rr .� r, — Higher Return on 0 e � . � . .. . .. _ :. .. . :. . s I nvest m e nt ������������������ . �.. . . : :T����e�c�l��r�l ��;�:: : .. �'.. . . . . Lower Total Cost of � � .. _ : . . .. ,,, :: ° . ���� °�\�" �`°� ��� �� :.. , ��������L��,����y�l.� .\ ���\�°� : \ ,;����`����� .. ,::::... , ... .�:.,.. �,��,� ��.> � . � . 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