AUTHORIZATION TO ENTER INTO AMENDMENT NO. 2 TO THE LINKING AGREEMENT WITH EMPIRE SOUTHWEST, LLC, AND RATIFY AND APPROVE AN EMERGENCY COOPERATIVE PURCHASE OF A CATERPILLAR TRASH COMPACTOR CERTIFIED POWER TRAIN REBUILD FOR THE GLENDALE MUNICIPAL LANDFILL
Staff Contact: Jack Friedline, Director, Public Works
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Purpose and Recommended Action
Recommendation
This is a request for City Council to authorize the Acting City Manager to enter into amendment No. 2 to the linking agreement with Empire Southwest, LLC (Empire), and to ratify the cooperative purchase of a Caterpillar trash compactor certified power train rebuild for the Glendale Municipal Landfill (Landfill) in an amount not to exceed $335,000.
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Background
The trash compactor is equipment used by staff to efficiently bury garbage received at the Landfill on a daily basis. The Landfill received approximately 338,000 tons of refuse last fiscal year (FY) and is on pace to process approximately the same amount this FY. The city utilizes two trash compactors in order to meet customer demands and manage daily operations at the Landfill per State and Federal guidelines.
Empire was awarded Contract No. 120377 by the City of Tucson through the National Intergovernmental Purchasing Alliance (National-IPA) Master Intergovernmental Cooperative Purchasing Agreement. All agreements offered through the National-IPA have been awarded through a Request for Proposal (RFP) competitive solicitation by a public Principal Procurement Agency (PPA). The PPA’s for Arizona are the City of Tucson and Maricopa County.
The City of Tucson Master Intergovernmental Cooperative Purchasing Agreement is accessible for use by Glendale through Council adoption of resolution 4684 New Series authorizing and directing the city’s participation in the National-IPA for the purpose of making cooperative purchases. This contract provides the best pricing available for the purchase of the Caterpillar trash compactor power train rebuild.
Materials Management and the City Attorney’s Office have reviewed and approve the action to cooperatively utilize the City of Tucson contract through National-IPA for the purchase of a certified power train rebuild on the landfill’s Caterpillar trash compactor.
Analysis
One of the existing Landfill 836 Caterpillar trash compactors had a catastrophic transmission failure on August 28, 2015. This equipment has over 22,000 hours and was due for replacement or evaluation for a certified "complete" rebuild in the city’s Capital Improvement Plan (CIP) in FY 2016-17. At this time staff is recommending the equipment be repaired and not replaced. The equipment will be evaluated again in five (5) years for replacement or a certified "complete" rebuild. Cost of a new equipment based on the current National-IPA Contract is approximately $1.12 million. The Landfill will be utilizing its contigency fund for this emergency repair.
Previous Related Council Action
On August 11, 2015, Council approved amendment number one (C-9713-1) to linking agreement C-9713 for the cooperative purchase of a Caterpillar loader from Empire in an amount not to exceed $362,969. The loader was programmed and paid from the FY 2015-16 CIP.
On February 24, 2015, Council approved linking agreement C-9713 for the cooperative purchase of a Caterpillar trash compactor from Empire in an amount not to exceed $1,119,512.82. The Caterpillar trash compactor was programmed and paid from the FY 2014-15 CIP.
On June 11, 2013, Council adopted resolution No. 4686 New Series to allow the use of National-IPA cooperative purchasing agreements for the City of Glendale.
Community Benefit/Public Involvement
The Landfill is a responsible, progressive and environmentally sound long-term solution to solid waste management essential to the future health, welfare and prosperity of Glendale residents.
The equipment will be used to compact and bury garbage received at the Glendale Municipal Landfill in a safe and cost effective manner.
Budget and Financial Impacts
Funds for this purchase are available in the FY 2015-16 Landfill Contingency Fund. The operating and maintenance costs associated with this purchase will be absorbed by the Landfill operating budget.
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Cost |
Fund-Department-Account |
|
$335,000 |
2440-17710-516400, Landfill |
Capital Expense? No
Budgeted? Yes
Requesting Budget or Appropriation Transfer? Yes
If yes, where will the transfer be taken from? Approve the use of contingency funding and authorize a budget transfer from 2440-11905-510200 (Landfill Contingency) to 2440-17710-516400 (Landfill - Repair and Maintenance - Major Equipment - Compactor Emergency Repair).