HomeMy WebLinkAbout12. 12-123
MARCH 27, 2012 12-123 RESOLUTION
(CARRIED___6-0____ LOST _______ LAID OVER _______ WITHDRAWN _______)
PURPOSE: AWARD BID FOR AUTOMATED SIDE LOADERS & TRUCK
CHASSIS / REFUSE TRUCKS WITH COMPRESSED NATURAL GAS
(CNG ENGINE) ($1,160,105.00) FOR SANITATION DIVISION TO
STEPP EQUIPMENT COMPANY
INITIATED BY: PURCHASING
WHEREAS, the City of Oshkosh has heretofore advertised for bids for Five
Automated Side Loaders and Truck Chassis for the Sanitation Division; and
WHEREAS, upon the opening and tabulation of bids, it appears that the following is
the most advantageous bid:
STEPP EQUIPMENT COMPANY
N58W14810 Shawn Circle
Menomonee Falls, WI 53051
Total Bid with Trade: $1,160,105.00
NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of
Oshkosh that the said bid is hereby accepted and the proper City officials are hereby
authorized and directed to enter into an appropriate agreement for the purpose of same, all
according to plans, specifications, and bid on file. Money for this purpose is hereby
appropriated from:
Acct. No. 100-0470-7210-00000 General Fund/Fund Balance Reservation –
Motor Vehicles
CITY HALL
215 Church Avenue
PO Box 1130
Oshkosh,Wisconsin
54903-1130 City of Oshkosh
OJHKOIH
TO: Honorable Mayor and Members of the Common Council
FROM: Jon Urben,General Services Bureau Manager
DATE: March 20,2012
RE: Automated Side Loaders and Truck Chassis-Sanitation Division
BACKGROUND
The Sanitation Division has five rear-loading refuse trucks that have exceeded our normal lifecycle for
their operations. The Common Council authorized staff to pursue automated collection of refuse
materials at their February 28, 2012 meeting and in doing so, provided the direction for the purchase
of the first five automated side loaders refuse trucks for this new automated collection process.
ANALYSIS
Working in conjunction with the Street Division,Purchasing reviewed and prepared proposals seeking
vendors for these automated side loaders and truck chassis. Vendors were asked to submit bids for
both diesel and CNG(compressed natural gas)engines. CNG vehicles are quieter, have reduced CO2
emissions, and start easier. In addition, CNG fuel costs are significantly less than diesel (estimated
$1.94/gallon vs. $4.00/gallon). The bids were advertised in the local paper and posted online on
NovusVendor. Bids were received on March 12, 2012. The bid tab is attached. A cost payback
analysis of the CNG option for these five vehicles is attached. The analysis also identified estimated
payback costs for the CNG option to be installed on an additional 10 future Public Work vehicles in
addition to costs for a permanent fueling station for the new Central Garage. In summary the analysis
shows the City could anticipate an estimated 10 year payback for the cost investment of moving
towards 15 CNG vehicles and a permanent fueling station. In consideration of CNG cost savings,
improved operational efficiencies and environmental benefits it was the consensus of staff that the
CNG vehicles were the best option for the automated collection process. From reviewing the CNG
bid tab we concluded the low bid from Stepp Equipment Company met the bid specifications.
FISCAL IMPACT
The fiscal impact of these five vehicles is $1,160,105. A total of$1,230,000 is available for funding
these vehicles including $730,000 from 2010 and 2011 fund balance reservations and $500,000 from
the 2012 Sanitation operating budget. These vehicles would be charged to the Sanitation Division's
operating budget account: 100-0470-7210-00000.
RECOMMENDATION
Purchasing recommends the Common Council award this bid to Stepp Equipment Company for
$1,160,105.
Respectfully Submitted, Approved:
Jon Urben,General Services Director City Manager
t«:
CNG Payback Analysis
Estimated payback of CNG option on five (5) Sanitation automated side loader vehicles.
This payback has CNG fuel being acquired offsite at CNG stations on north or south side
of Oshkosh. Current cost for CNG $1.94/gallon, Diesel- $4.04/gallon. ($2.10 difference)
CNG installation cost for five Sanitation vehicles: $142,500 ($28,500 install per unit)
Annual fuel cost savings of CNG option on five vehicles: $35,700 (17,000 gal/year X $2.10)
Estimated payback of CNG option installation: 3.99 years
Estimated payback of CNG option on five (5) Sanitation automated side loader vehicles
with an additional ten (10) Public Works vehicles with the CNG option installed. This
payback projection includes costs for a permanent fuel station to be installed at the new
Central Garage. Payback factors same fuel cost assumptions as above.
CNG installation cost for five Sanitation vehicles: $142,500 ($28,500 install per unit)
CNG installation cost for 10 additional PW vehicles: $285,000 ($28,500 install per unit)
Fuel station construction costs @ new Central Garage $475,000
CNG modification costs to new Central Garage $200,000
$1,102,500
Annual fuel cost savings of CNG option on 15 vehicles: $107,100 (51,000 gal/year X $2.10)
Estimated payback of CNG option installation on 15 10.29 years
Vehicles, Fuel Station Construction Costs and CNG
Modification Costs to new Central Garage
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