City Council Regular


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  ITEM 13.       
Meeting Date: 10/13/2020  
Submitted For: Michelle Woytenko
Department: Field Operations  

Subject
AUTHORIZATION TO ENTER INTO AMENDMENT NO. 2 TO THE LINKING AGREEMENT WITH FREIGHTLINER OF ARIZONA, LLC, FOR THE COOPERATIVE PURCHASE OF MEDIUM AND HEAVY-DUTY VEHICLES AND BUSES 
Presented by: Michelle Woytenko, Director, Field Operations
Purpose and Recommended Action
This is a request for City Council to authorize the City Manager to enter into Amendment No. 2 to the Linking Agreement with Freightliner of Arizona, LLC, Contract No. C19-0168, for an increase of $6,000,000 for a total not to exceed amount of $11,000,000, for the entire term of the Agreement for medium and heavy-duty vehicles and buses.  The agreement is effective until January 18, 2021. 
Background

The City of Glendale fleet consists of over 1,300 vehicles and equipment ranging from sedans and light duty vehicles to heavy-duty trucks.  Each vehicle class has a replacement schedule based on a combination of industry life-cycles, targeted mileage and vehicle age.  Additional factors considered in replacement selection are mechanical condition, maintenance history, physical appearance and cost per mile data.  All vehicles selected for replacement have met or exceeded the established replacement criteria.   

Freightliner of Arizona, LLC, was awarded a bid from the State of Arizona, Contract No. CTR041810, for Medium and Heavy Duty Cabs, Chassis and Buses, on January 18, 2019.  The contract is effective through January 18, 2021 and includes the option to renew the term for an additional three, one-year renewals, allowing the contract to be extended through January 18, 2024. 

Cooperative purchasing allows counties, municipalities, schools, colleges and universities in Arizona to use a contract that was competitively procured by another governmental entity or purchasing cooperative.  Such purchasing helps reduce the cost of procurement, allows access to a multitude of competitively bid contracts, and provides the opportunity to take advantage of volume pricing.  The Glendale City Code authorizes cooperative purchases when the solicitation process utilized complies with the intent of Glendale’s procurement processes.  This cooperative purchase is compliant with Chapter 2, Article V, Division 2, Section 2-149 of the Glendale City Code, per review by the city’s Procurement Division. 

Analysis
Field Operations maintains a replacement program for Solid Waste refuse trucks.  Side-load trucks that service residential refuse and recycling have a life-cycle of six years, as do the front-load trucks that service commercial operations.  Rear-load trucks used in the collection of bulk trash have a typical life-cycle of eight years.  In FY20-21, Field Operations will replace up to four side-load trucks, two rear-load trucks, two front-load trucks for Solid Waste and one truck for the Water Services Department, using this contract as described in the Capital Improvement Plan budget.  This amendment will also allow for orders in future years. 
Previous Related Council Action

On December 4, 2019, the city entered into a Contract Extension, C19-0168-1, to the Agreement with Freightliner of Arizona, LLC, extending the term of the agreement through January 18, 2021. 

On February 26, 2019, Council authorized entering into a Linking Agreement with Freightliner of Arizona, LLC, Contract No. C19-0168, for Medium and Heavy Duty Cabs, Chassis and Buses, in an amount not to exceed $5,000,000. 

Community Benefit/Public Involvement

Purchase of heavy-duty trucks and equipment ensure the continued delivery of service provided to the citizens of Glendale. 

Cooperative purchasing allows counties, municipalities, schools, colleges and universities in Arizona to use a contract that was competitively procured by another governmental entity or purchasing cooperative. Such purchasing helps reduce the cost of procurement, allows access to a multitude of competitively bid contracts, and provides the opportunity to take advantage of volume pricing. The Glendale City Code authorizes cooperative purchases when the solicitation process utilized complies with the intent of Glendale’s procurement processes. This cooperative purchase is compliant with Chapter 2, Article V, Division 2, Section 2-149 of the Glendale City Code, per review by Materials Management.


Fiscal Impact
Fiscal Year: FY2020-21
Fiscal Year Amount Requested: $2,000,000
Budgeted Y/N?: Y
Account: Various
Transfer Required? Y/N: N
If Yes, what account will be used?:
Budget and Financial Impacts:
Funding is available in FY2020-21 in various Solid Waste and Water Services Department CIP accounts. Remaining funding would be available in the Vehicle Replacement Fund and various other funds such as Highway User Revenue Funds (HURF), Glendale Onboard (GO) Transportation Program, and Enterprise Funds. The increase in expenditures with Freightliner of Arizona, LLC, is $6,000,000, for a total not to exceed $11,000,000 over the entire term of the Agreement. Expenditures beyond the current fiscal year are contingent on Council budget approval. 
Attachments
Amendment No 2


    

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