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E2. Reject Solid Waste Truck BidCITY OF KALISPELL MEMORANDUM To: Doug Russell, City Manager From: Gene Come, Road, Fleet, and Solid Waste Superintendent Cc: Susie Turner, PE, Director of Public Works Re: New 31 Cubic Yard Side Arm Loader Garbage Truck Meeting Date: December 6, 2021 BACKGROUND: The FY 22 Solid Waste budget allocated for the purchase of a new side loader garbage truck. The new side loader garbage truck was a scheduled replacement of a 2010 truck currently in service. The equipment life cycle schedule for a City side arm load garbage truck is 8 years as a primary route truck and 4 years as a backup route truck. Delivery time for a new side loader garbage truck, in the past, has been approximately one year from the award date. The City of Kalispell solicited bids for a new 31 cubic yard side arm loader garbage truck in November of 2021. One responsive bid from SWS Equipment was received and opened on November 29, 2021, at 3:00 PM. Contractor: SWS Equipment FY 22 Budget Estimate Total Bid Price $378,987.00 $325,000.00 The single bid received for one (1) new 31 Cubic Yard Side Load garbage truck exceeds the FY 22 budget by $53,987.00. City staff reviewed the submittal and found the bid did not meet the City's specifications for several critical components as solicited in the bid advertisement. RECOMMENDATION: Staff is recommending rejecting the bid received and allocating additional funding in FY 23 to reflect the current market costs for aside loader garbage truck. The pandemic has unfortunately created uncertainty in truck manufacturing costs and delivery schedules. Staff has been informed by manufacturers there has been a 237% price increase in steel costs over the last year and chassis manufacturers are only taking orders for 2023 schedule builds. REQUESTED ACTION: Motion to reject bids received for the New 31 Cubic Yard Side Arm Garbage Truck. FISCAL EFFECTS: None at this time. New allocation of funds will be presented to Council during the FY 23 budget process to reflect current and updated market purchase values for a side loader garbage truck. ALTERNATIVES: As suggested and approved by the City Council. 201 1' Avenue E IPhone (406)758-7720 PO Box 1997 Public Works Department Fax (406)758-7831 Kalispell, MT 59903 1 www.kalispell.com