HomeMy WebLinkAbout1996.07.25_OPWA Agenda_SpecialPUBLIC NOTICE OF THE MEETING OF THE
OWASSO PUBLIC WORKS AUTHORITY
TYPE OF MEETING: Special
DATE: July 25, 1996
TIME: 6:30 p.m.
PLACE: City Hall Conference Room, City Hall
Notice and Agenda filed in the office of the City Clerk and posted on the City Hall bulletin
board at 5:00 p.m. on Tuesday, July 23, 1996.
Phnothy �no
D. RoWey, Community Dek#opment Director
AGENDA
1. Call to Order
2. Roll Call
3. Consideration and Appropriate Action Relating to the Award of a Contract for the
Privatization of All Residential Refuse Collection.
Mr. Carr
Attachment #3
The staff has completed a bidding process, reviewed the bids received, and will recommend
P rejection of all bids received relating to the privatization of residential refuse collection
services.
4. Consideration and Appropriate Action Relating to the Award of a Contract for the Purchase
of a Refuse Collection Vehicle by the Public Works Department; and Authorization for
Payment.
Mr Carr
Attachment #4
The staff has completed a bidding process, reviewed the bids received, and will recommend
a contract be awarded to Waste Research, Inc. for the purchase of one refuse collection
" vehicle in the amount of $105,416.53.
Owasso Public Works Authority
July 25, 1996
Page 2
5. Report from OPWA Manager
6. Report from OPWA Attorney
Adjournment
TO: RODNEY J. RAY
CITY MANAGER
FROM: F. ROBERT CARR, JR., P.E.
PUBLIC WORKS DIRECTOR
ISUBJECT: RESIDENTIAL REFUSE COLLECTION BIDS
IDATE: July 19, 1996
IBACKGROUND:
Bids were received on May 2, 1996 for a new refuse collection vehicle. A total of 8 bids were
submitted by 6 manufacturers, ranging from $105,416.53 to $127,035.00 (the FY95 -96 budget
for this purchase is $110,000.00). In light of the dollar amount of the vehicle, staff was
authorized by the Trustees on June 18, 1996, perform an evaluation of providing residential
refuse collection services prior to investing in a new collection vehicle. Staff was authorized
to solicit bids for contracting residential refuse collection and disposal services to a private
vendor.
All bidders for the new refuse collection vehicle agreed to extend their bids to at least July 31,
1996. This extension allowed time for responses to be received and evaluated for contracting
residential collection and disposal services. Staff did not believe spending over $105,000 on a
truck would be a good business decision without evaluating all options.
To adequately conduct such an analysis, it was necessary to include the potential for contracting
residential collection and disposal services. A comparison could then be made with actual and
budgeted costs of services using city personnel.
It was felt that if the evaluation of contractor bids indicates a true savings for the city, and the
Trustees agrees that contracting is desirable, then the truck bids could be rejected in favor of
privatization. On the otherhand, if the bids for privatization were not advantageous, they could
10 be rejected and a contract for a new vehicle could be awarded.
Page 2
Residential Refuse Collection Bids
B11D SPECIFICATIONS:
A set of bid specifications and contract documents prepared by staff and reviewed by the City
Attorney (see Attachment 1). Generally, the specifications included the contractor services to
be essentially the same as presently being provided. Requirements included:
® Once per week curbside pickup
• Use of polycarts (with additional bag allowance)
• Separate yardwaste collection
• Extra collection for bulky materials and
• Bid prices to purchase existing equipment that may not be needed for city
operations.
A bid proposal packet was assembled and advertised. Bids from prospective firms were
accepted on July 18, 1996.
BIDS ANALYSIS:
Bids were received from the following four (4) companies:
• Browning -Ferris Industries, Inc. (Tulsa, OK)
• Controlled Waste (Tulsa, OK)
• Johnson Sanitation Service, Inc. (Glenpool, OK) and
• Waste Management of Oklahoma, Inc. (Tulsa, OK)
Staff used the current residential refuse and yardwaste collection frequency as the basis of
comparison of the submitted bids. Bid items are compared in Table 1.
Base Bid
The Base Bid is a compilation of monthly charges for residential refuse cart, commercial refuse
cart, and residential yardwaste cart and bag collection and disposal. Annualized total cost of
each item is listed based on the monthly rate and number of units provided service.
The quantities of each item included in the Base Bid (with the exception of the "extra
refuse/yardwaste pickup" item, which is variable and easily quantifiable) have been estimated
using end of May 1996 billing account data. These data serve as the basis of the comparison
of costs for each bidder.
Based on the tabulation, the apparent lowest annualized Base Bid was provided by Browning-
Ferris Industries, Inc. (BFI) in the amount of $361,566.60.
TABLE 1
MONTHLY AND ANNUALIZED CONTRACT COST PER BID ITEM
BFI
Controlled Waste
Johnson
Waste Management
Item
Units
Per
Monthly
Annual
Monthly
Annual
Monthly
Annual
Monthly
Annual
month
Total
Total
Total
Total
BASE BID
REFUSE COLLECTION
Residential
Curbside
3,978
$6.85
$326,991.60
No Bid
No Bid
$8.00
$381,888.00
$6.80
$324,604.80
Houseside
10
$7.50
$900.00
No Bid
No Bid
$4.00
$480.00
$8.80
$1,056.00
Commercial
124
$10.00
$14,880.00
No Bid
No Bid
$10.00
$14,880.00
$10.00
$14,880.
YARDWASTE COLLECTION
(April through October)
Cart locations
290
$6.50
$13,195.00
No Bid
No Bid
$2.00
$4,060.00
$5.90
$11,977.00
Bagged locations
400
$3.50/10
$5 600.00
No Bid
No Bid
$2.00
$5,600.00
$3.90
$10,920.00
BASE BID TOTALS
$361,566.60
No Bid
$406 908.00
$363,4
EXTRA REFUSE/YARDWASTE
PICKUP
Suggested a 30gal -bag
No Bid
. >:> ::; ;:: >:: >::>
$10.00 /stop
Residential/commercial
r and
or equivalent
$0.05/lb
<'.......;,:.;
$5.00/ d3
cost
structure
Yardwaste
per pound
No Bid
$0.05/lb
$5.00 /ydj
ALTERNATE BID o
...........
::::: >::::
PURCHASE
VEHICLES
1984 International
$3,500.00
$4,500.00
$15,000.00
$3,000.00
1984 International
$3,500.00
..... .
;;:;`'.`
$4,500.00
. .........
$15 000.00
$3,000.00
1981 Lodal
_.......>
...:;....:
$1 500.00
$3 000.00
s:.;»::: : >:::. >::;:. >::: >:::;:.; >:. >:::
$15 000.00
.....;;;;:.;:.;:. >:::
$2,000.00
9
1 88 Lodal
$4.5 00.00
$ 6 000.00
;:.;:.:.;:.;:.;:.;::::.;:.;;•
25 000.00
$5 000.00
1992 Lodal
$68 400.00
.:
$9,500.00
S40,000.00
$30,000.00
CARTS
90 -gallon Ameri -Kart
Per cart
Per cart
Per cart
Per cart
Green
4 200
$15.00
$63,000.00
$15.00
$63,000.00
$25.00
$105,000.00
$10.00
$42,000.00
Red
290
$15.00
$4,350.00
$12.00
$3,480.00
$25.00
$7,250.00
$10.00
$27900.00
90 -gallon Zarn "Roll-A-Waste
I
No Bid
No Bid
$12.00
$900.00
$25.00
S1.875.00
$10.00
$750.00
TOTAL ALTERNATE BID
$148,750.00
$94,880.00
$224,125 00
$88,650.00
Page 4
Residential Refuse Collection Bids
Alternate Bid for purchase of Authority vehicles and equipment
The Alternate Bid was structured to have bidders provide prices for the purchase of existing vehicles
and equipment. Approximately 60 -days following award of a contract, the contractor would be
responsible for providing necessary vehicles and carts. The City would not need to maintain the
existing vehicles and equipment inventory; therefore, bids were provided to enable the Authority to sell
the non - essential items. With the exception of Controlled Waste, all bidders indicated that they would
buy the Authority equipment only if awarded the contract. BFI bid a total of $148,750.00 for vehicles
and carts. Controlled Waste did not bid on collection services and bid only on- the vehicles and
equipment in the amount of $94,880.00.
ACTUAL AND BUDGETED CITY COSTS OF SERVICE:
Calculation of present actual and budgeted costs of providing the specified services using city personnel
and equipment serves as a basis for comparison of the bid amounts. The following costs have been
identified by the Finance Department:
Expenses
FY 1996
Budgeted
FY 1997
Personal Services
$92,875
$93,239
Landfill tipping fees
47,310
55,000
Polycarts
23,825
24,000
Polycart repair supplies
1,504
1,000
Vehicle maintenance and fuel
22,674
21,000
Uniforms
1,377
2,500
Vehicle depreciation
30,517'
Administrative services
25,000
25,000"
Other
1,041
1,050
TOTALS
$215,606
$253,306
*Two $110,000 vehicles with 7 -year straight -line depreciation
"Estimated for all additional support services
COSTS COMPARISON:
Budgeted FY 1996 -97 expenses for residential/commercial refuse and yardwaste collection and disposal
amount to approximately $253,000. The apparent low bid amount for similar services is approximately
$361,500. A differential of $108,500 exists between these two amounts. As increased development
a
Page 5
Residential Refuse Collection Bids
and growth in the city occurs, more customers will be added to the present service base and the above
differential will increase.
Present refuse collection rates charged to customers are as follows:
Residential $8.00 per month
Commercial $10.00 per month
Yardwaste container $6.50 per month
IIncluded in the residential rate is $1.50 per month applied to the residential street repair program.
To cover the cost of the bid amounts of the apparent low bidder and the $1.50 per month residential
street repair charge, a minimum of $8.35 per month would be required. Rates would need to be
increased and there would not be any additional net income to the OPWA fund.
SUN I MiARY ANALYSIS:
Various points have been determined during the bid analysis:
It is more cost- effective to continue providing service using city personnel and equipment.
Turning over the operation to a contractor would not be cost - effective/productive at this time.
Efficiencies of operation are able to be maintained using the present mode of operation.
• The Trustees would have to raise rates for refuse collection to achieve the same net level of
income and maintain the existing program for residential street repairs.
• The ability to provide quality service to the customers will be enhanced with the addition of a new
refuse collection vehicle in FY1996 -97. An additional vehicle should be added to the fleet in
FY1997 -98 to meet projected system growth and consistent collection services.
• Manpower for refuse collection has not been increased at a rate consistent with the rate of system
growth. An additional person should be included in the Division to keep from having to place
demands on other Public Works Department functions. Typically, personnel and equipment are
borrowed as- needed to meet daily workload fluctuations, thereby detracting from the ability to
provide other essential operations to city customers.
RECOMMENDATIONS:
Staff recommends the following actions by the Trustees:
1. Reject all Base Bids for residential/commercial refuse collection services bid on July 18, 1996.
Page 6
Residential Refuse Collection Bids
2. Award a bid for the purchase of a refuse collection vehicle (see next Agenda item).
3. Begin the process to authorize an additional person be added to FY1996 -97 budget for the Refuse
Collection Division of the Public Works Department.
ATTACBMENTS:
1. Bid documents
2. Bid Proposals
Note: Although staff is not requesting any action at this time, the Trustees should consider including
the purchase of an additional refuse collection vehicle in the FY1997 -98 Budget. Such a '
purchase will supply the Division with the number of vehicles needed to provide reliable
customer service with required flexibility to meet system growth.
Based on projections, collection days and the number of vehicles required to be operational '
is expected to increase. A minimum of three (3) vehicles will be needed two or three days
per week.
MEMORANDUM
TO: RODNEY J. RAY
CITY MANAGER
FROM: F. ROBERT CARR, JR., P.E.
PUBLIC WORKS DIRECTOR
SUBJECT: PURCHASE OF RESIDENTIAL REFUSE COLLECTION
VEHICLE
1 22
DATE: July , 1996
BACKGROUND:
The FY 94 -95 Public Works Department Refuse Collection Division Budget contained funds for
the purchase of a new refuse collection vehicle. Due to budget constraints, purchase of the
vehicle was deferred to the FY95 -96 budget.
The existing refuse collection vehicles used for residential collection are a 1981 Loadal, 1988
Loadal and 1992 Loadal. Presently, Public Works uses two full -time collection routes (4 days
per week) and one part-time route (1 day per week). In addition, one of the full -time trucks is
used in commercial collection one day per week. Continued growth in residential development
is expected to increase the part-time route to a minimum of 2 days per week by the Fall 1996.
It is anticipated that the division may require three full-time residential collection routes by
FY 97 -98. To ensure an adequate amount of backup equipment is available in case of vehicle
breakdown or extended down time for repairs, the additional refuse collection vehicle was
included in the budget. Replaced vehicles are utilized for emergency backup and at the Recycle
Center.
VEHICLE SPECIFICATIONS:
Specifications for bidding were prepared containing an alternate for a dual rear axle vehicle.
1p The dual axle vehicle was specified help to distribute the weight of the truck more effectively
and reduce impacts on our residential streets. The dual axle vehicle also has a larger carrying
capacity, which could reduce landfill hauling costs.
Page 2
Refuse Collection Vehicle Bid Award
In August 1995, Public Works Department staff completed a specification packet and bid
documents were mailed to six (6) prospective bidders. Only one (1) bid was received on
October 26, 1995 in the amount of $117,130.00 (the FY95 -96 vehicle budget was $110,000).
Subsequent to the bid date, two vendors expressed that the bid specifications restricted their
ability to submit on the vehicle. Discussion was held by Public Works and Vehicle Maintenance
personnel with both potential vendors to determine how to restructure the specifications to ensure
continued quality and enable additional bids to be submitted.
As a result of these discussions, staff concluded that performance -based proposals detailing
specific vehicle components and operational requirements would be in the best interests of the
city. As a result, a revised specification packet was prepared.
BID ANALYSIS:
On May 2, 1996, eight (8) bids were received from six (6) prospective vendors. Bids ranged
in price from a low of $105,416.00 to a high bid of $127,035.00.
Bid proposals submitted vary based on individual characteristics of each vehicle. None of the
eight bids completely met the specification. Priorities of the specifications have been established
and each vehicle evaluated to ensure that they met the priorities. The priorities are listed below:
• 25 Cubic Yard Capacity
This capacity enables fewer trips to the landfill (approximately 12 miles round trip).
Existing Lodal capacity is 20 cubic yards. The added capacity conserves fuel and is
a 20% increase over current trucks in use.
Hopper Capacity - 3 Cubic Yards
The hopper is the area and opening that receives the refuse from the cart. This
opening must be of a sufficient size as to prevent the spillage of refuse to the ground
and street.
Refuse Discharge Method (Ejection)
The ejection method of emptying the truck pushes refuse out the rear of the truck
rather than requiring the packer body to be raised in the front and the load to be
emptied by gravity. When the packer body is raised the center of gravity for the
vehicle changes and the potential for the truck to sideways as the vehicle is driven
forward to remove the load is possible. Ejection minimizes the possibility of
overturning.
• Low entry cab (20 -inch maximum)
The present collection system utilizes a one-man operation. The procedure requires
the driver /operator to exit and enter the cab at each stop. Low entry is needed to
keep driver fatigue to a minimum.
Page 3
Refuse Collection Vehicle Bid Award
• Refuse Container (polycart) Lift and Dump Capability
Owasso presently utilizes Ameri-Kart 2000 (polycarts) for residential refuse
collection. These carts have a capacity of 90 gallons. To maintain a one -man per
truck operation, the lift is required to enable the dumping of these carts. Exposure
to Workers Compensation back injury claims are reduced using the lift system.
a 300 Horsepower Engine
The engine was specified at this high horsepower rating to enable the engine to
operate all hydraulic, air and power systems efficiently. This higher horsepower
allows the vehicle to effectively operate at residential and highway speeds.
• Automatic Transmission (5 Speed)
An automatic transmission was specified and has become an industry standard. This
transmission greatly reduces driver fatigue. The five speed transmission provides
additional fuel saving during refuse transportation to and from the landfill. The need
for clutch maintenance is eliminated.
An analysis was performed to compare the priority bid specifications to the refuse truck provided
by the bidders. The objective was to determine which vehicle would be able to be provided to
meet established priorities within the available budget.
RESULTS OF PRIORITY EVALUATION:
Each priority specification, including budget, is listed in Table 1 and the submitted bids
evaluated for conformance. Results of the evaluation are as follows:
Within budget amount
Although the FY 95 -96 budget for this vehicle was $110,000.00, the budget was
increased to $120,000.00 for FY96 -97. Four bids were received (Crane Carrier, Waste
Research and Williams Refuse) below the budget.
25 cubic yard capacity
One bid submittal (Williams Refuse) did not meet the minimum requirement. All other
bids met or exceeded the minimum.
3 cubic yard hopper =acily
Total Truck, Waste Research and Williams Refuse are capable of meeting this
specification.
Ejection discharge method
Only two bidders (Waste Research and Williams Refuse) submitted equipment in
conformance with this specification.
Low entry cab
Of the 8 bids submitted, one bidder (Waste Research) exceeded the entry requirement.
The submittal exceeded specified requirements by only 1 -inch and not considered to be
excessive.
TABLE 1
REFUSE COLLECTION VEHICLE BID SPECIFICATION COMPARISON
Bidder
Wig
Ejection
budget
Polycart lift
amount
Automatic
Crane Carrier Tulsa, OK
Yes
discharge
$112,518.00
Crane Carrier Tulsa, OK
Yes
(5 speed)
$119,233.00
McNeilus Truck Hutchins, TX
No
& Manufacturing
$122,950.00
Total Truck & Norman, OK
No
Trailer Equipment
$123,021.00
Total Truck & Norman, OK
No
Trailer Equipment
$127,035.00
Waste Research Chouteau, OK
Yes
(0.75 yd3)
$105,416.53
(18 ")
Williams Refuse Owasso, OK
Yes
Equipment Co.
$115,483.00
Williams Refuse Owasso, OK
No
Equipment Co.
$128,434.00
25 cubic
3 cubic yard
Ejection
Low entry cab
Polycart lift
300 HP
Automatic
yard capacity
hopper capacity
discharge
(20" maximum)
mechanism
engine
(5 speed)
method
transmission
Yes
No
No
Yes
Yes
No
Yes
(29 yd3)
(0.75 yd3)
(18 ")
(250 HP)
Yes
No
No
Yes
Yes
No
Yes
(33 yd3)
(0.75 yd3)
(18 ")
(250 HP)
Yes
yes
No
Yes
Yes
Yes
No
(4 speed)
(25 yd3)
Yes
No
No
Yes
Yes
No
Yes
(34 yd3)
(0.75 yd3)
(18 ")
(250 HP)
Yes
No
No
Yes
Yes
No
Yes
(33 yd3)
(0.75 yd3)
(18 ")
(250 HP)
Yes
Yes
Yes
No
Yes
No
Yes
(25 yd)
(21-)
(275 HP)
No
Yes
Yes
Yes
Yes
No
No
(20 yd3)
(with extension)
(18 ")
(215 HP)
(4 speed)
Yes
Yes
yes
yes
Yes
No
No
(25 yd3)
(with extension)
(18 ")
(230 HP)
(4 speed)
� M M M M M M r
' Page 5
Refuse Collection Vehicle Bid Award
Polycart lift mechanism
All submittals indicated conformance with this requirement.
300 horsepower engine
Only one bid submitted (McNeilus Truck) conformed to the specified engine horsepower.
Of the remaining submittals, Waste Research specified a 275 horsepower engine.
Automatic (5 spy) transmission
Three of the six bidders are capable of meeting this specification. The conforming
bidders are Crane Carrier, Total Truck and Waste Research.
A summary tabulation of data presented on Table 1 is shown below. Each bid is listed in order
of increasing bid price and shows the truck capacity and conformance with the specifications.
Bidder
Bid Amount
Truck Capacity
(cubic yards)
Conformance with
specifications
Yes
No
Waste Research
$105,416.53
25'
6
2
Crane Carrier
$112,518.00
29
5
3
Williams Refuse Equipment
$115,483.00
20
5
3
Crane Carver
$119,233.00
33
5
3
McNeilus Truck
$122,950.00
25
5
3
Total Truck
$123,021.00
34
4
4
Total Truck
$127,035.00
33
4
4
IL Williams Refuse Equipment
$128,434.00
25
5
3
Detailed review of the top four (4) submittals indicates that only Waste Research and Williams
Refuse were the only bidders proposing use of an ejection discharge method. The Waste
Research submittal conforms to 6 of the 8 evaluation criteria. Deviation from the other criteria
is considered minimal (a 21" cab entry versus 20" specified and 275 horsepower engine versus
300 horsepower specified). A 25 cubic yard capacity is proposed. The Waste Research bid
amount of $105,416.83 is below the budget of $120,000.00. (Williams Refuse proposed a 20
cubic yard capacity in the amount of $115,483.00. The vehicle more closely meeting bid
specifications has a 25 cubic yard capacity in the amount of $128,434.00.)
tFUNDING:
Funding for purchase of the refuse collection vehicle is included in the FY96 -97 Refuse
Collection Division budget (line item 61 -541 -5443) in the amount of $120,000.
Page 6
Refuse Collection Vehicle Bid Award
RECOMMENDATION:
Staff recommends Trustees approval of the purchase of a refuse collection vehicle from Waste
Research, Inc., Chouteau, Oklahoma in the amount of $105,416.53 and authorization for
payment.
ATTAC S:
1. Bid proposals
Waste Research, Inc.
Williams Refuse Equipment Co., Inc.