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HomeMy WebLinkAbout _ 4.11(b)--Approve and Authorize the Purchase of Waste Handling Equipment Using Sourcewell and HGACBuy GI �" Y C� F � � �- ' � ° � � i � CITY OF REDDING �� REPORT TO THE CITY COUNCIL MEETING DATE: August 4, 2025 FROM: Michael Webb, Public Works ITEM NO. 4.ll(b) Director ***APPROVED BY*** „, �. .A,��,� ie ael � iiEali� oaks L)arector 7/?$1242� i�}�in,Ci an � 7130/242� mwebb@cityofredding.org btippin@cityofredding.org SUBJECT: 4.ll(b)--Approve and Authorize the Purchase of Waste Handling Equipment Usin Sourcewell and HGACBuy Contract Pricin 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 for a total amount not-to-exceed $1,230,000 for the City of Redding Solid Waste Utility for Fiscal Years 2025-26 and 2026-27. Fiscal Impact For the new budget cycle, the Solid Waste Utility (Utility) budgeted $1,230,000 (Fiscal Year 2025-26 - $605,000 and Fiscal Year 2026-27 - $625,000) for the replacement of residential carts, roll off boxes, commercial containers, organic containers, lids, and other parts. Alterna�ive 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. Background/Analysis Currently, the Utility has approximately 105,000 residential carts in service, 6,500 metal and plastic commereial containers, and 190 roll off boxes. The replacement cost of residential earts is approximately $'75 each and commercial containers range from $400 to $2,500 each, depending on size. The cost for roll-off boxes ranges from $8,000 to $14,000 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 $800 to $1,500 each. Report to Redding City Council July 30, 2025 Re: 4.11(b)--Approve and Authorize the Purchase of Waste Handling Equipment Using Sourcewell and HGACBuy Page 2 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 coinmercial containers. New carts include a 12-year warranty 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 Sourcewell and HGACBuy cooperative agreements. 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.