HomeMy WebLinkAbout11. 16-251 MAY 24, 2016 16-251 RESOLUTION
(CARRIED 7-0 LOST LAID OVER WITHDRAWN )
PURPOSE: AWARD BID TO STEPP EQUIPMENT CO., FOR TWO (2)31 CUBIC
YARD COMPACTION SIDE LOADING BODY AND CHASSIS UNITS
FOR RECYCLING DIVISION ($416,190.00)
INITIATED BY: PURCHASING DIVISION
WHEREAS, the City of Oshkosh has heretofore advertised for bids for two
replacement trucks in the recycling fleet; and
WHEREAS, the replacement trucks consist of a 31 cubic yard compaction side
loader body and chassis; and
WHEREAS, upon the opening and tabulation of bids, it appears that the following is
the most advantageous bid:
STEPP EQUIPMENT CO.
N58W14810 Shawn Circle
Menomonee Falls, WI 53051
Total Bid w/ Trade: $416,190.00
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. 211-0480-7210-00000 Recycling — Motor Vehicles
CITY HALL
215 Church Avenue
P.O. Box 1130
Oshkosh, Wisconsin
54903 -1130 City of Oshkosh
-(0-
QlHKQJH
TO: Honorable Mayor and Members of the Common Council
FROM: Jon G. Urben, General Services Manager
DATE: May 17, 2016
RE: Award Bid to Stepp Equipment Co. for two (2) 31 cubic yard compaction
side loading body and chassis units for Recycling Division ($416,190).
BACKGROUND
Funds are available in the Recycling Division's 2016 operating budget to replace two
trucks in the recycling fleet. These trucks consist of a 31 cubic yard compaction side
loader body and chassis. The new trucks would replace two older units that have high
mileage for their use and have worn front suspensions and brakes that are too costly to
repair. The new units will have steel welded into the garbage body floor, to help
minimize the wear and tear from the recycling material being compacted. Both diesel
and compact natural gas (CNG) engine options were requested in the bid specifications.
ANALYSIS
Working in conjunction with Public Works staff, Purchasing then reviewed and prepared
bid specifications for these units. The bids were sent to all known manufacturers who
have bid on these units in the past. Bids were received on April 15, 2016. The bid tabs
are attached. As the bid tab indicates, there is a significant higher cost for the CNG
engine option (over $36,000 more per unit). Public Works staff review of both engine
options recommended diesel engines be pursued for these units. Their diesel vs. CNG
cost analysis concluded that changing market factors influenced the recommendation for
the diesel engine option, including: a) the significant decrease in diesel fuel prices (diesel
is currently averaging $1.47 /gallon vs. CNG at $1.72 /gallon); b) Diesel engine
manufacturers have made great progress in building "Clean Diesel" engines for these
type of units that produce less emissions and are more fuel efficient than prior diesel
engines; and c) CNG engine manufacturers have not decreased the cost of CNG engines
as expected. In consideration of these factors and the $36,000 additional cost for each
CNG engine, it was the consensus of staff that the diesel engine was the most cost
effective option for these units. Based on the diesel engine recommendation, Purchasing
ca
and Public Works staff then concluded that the low bid from Stepp Equipment Co. met
the minimum side loader and chassis bid specifications.
FISCAL IMPACT
With trade in, the total fiscal impact for the two units is $416,190. There are sufficient
funds in the Recycling Division's 2016 operating budget for this purchase. Funding for
this item would be charged A/N #: 211-0480-7210-00000.
RECOMMENDATION
Purchasing recommends the Common Council award this bid to Stepp Equipment Co. for
$416,190.
Respectfully Submitted,
zo,z_
Approved:
Jon G. Urben, General Services Manger Mark A. Rohloff, City Manager
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cl
00
M
V}
m
m
O
Ln
Ln
ID
N
00 01
N
ra
Q