3. Award Bid - Rear Loading Refuse Collection Truck & BodyClit
g of Kalispell Public Works Department
Post Officc Bois 197, alispe z. Mowana 5990 -1997 - Tclephoac (4 6);7588-7720, Fax 11406)75 m7 31
REPORT TO: Mayor and City Council
FROM: dames C. Hansz, P.E., Director of Public Works
SUBJECT: Award Bid — Rear -Load Refuse Collection Truck & Body
MEETING DATE: December 6, 2004
BACKGROUND: The current Solid Waste Division budget includes an appropriation of $125,000,00 for
the purchase of a replacement rear -load refuse collection truck. Bids were solicited from local vendors. A
single bid from Tri-State Truck & Equipment in the amount of $134,662.00 was received by the
November 18, 2004 due date. Analysis of the bid confirmed that all specifications were met. In addition,
the bid included as requested an option for trade-in of the old 1981 rear -load truck in the amount of
$2,000.00. The net bid with trade-in is $132,662.00.
A more detailed analysis was conducted to better understand the causes and justification of a bid
price exceeding a budgeted amount that was based on vendor estimates given in February of 2004. Two
factors were identified that are most likely causes of the cost increase. Steel plate prices have risen
approximately 66% since June 2004. Trucks of this type are assemblies of standard truck chassis with
custom fabricated bodies made of steel plate. Significant changes in steel price adversely affect the price
of the finished track. In addition, new EPA regulations have increased the costs of truck engines and their
pollution control systems. We believe these two items reflect the most likely causes of the higher than
anticipated bid.
A lower than anticipated bid on the 314 ton pick-up truck a few weeks ago (approximately $2,500
savings), coupled with the $2,000 trade-in allowance means the additional amount needed to cover the
current bid is approximately $5,000.00. We have reviewed the Solid Waste budget with the Finance
Director and have concluded that sufficient replacement funds are available to cover the difference
between bid and budget.
RECOMMENDATION: Award bid to supply a rear load refuse truck and body to Tri-State Truck &
Equipment of Billings based on their bid of $132,662.00, inclusive of trade-in allowance for a 1981
International rear -load truck.
ACTION REQUESTED: AT CITY COUNCIL MEETING OF DECEMBER 6 A MOTION TO
AWARD THE BID FOR READ -LOAD REFUSE TRUCKAND BODY TO TRASTATE TRUCKAND
EQUIPMENT OF BILLINGS, MONTANA.
December G, 2004 Award Bid Rear -load Garbage I'ruck.doc
FISCAL EFFECTS: Expenditure of funds totaling $132,662.00 from the Solid Waste Fund equipment
replacement account.
ALTERNATIVES: As suggested by the City Council
James H. I'ati�
City Manager
Attachment: Bid Recommendation
Decemb" 62004 Award Bid Rear-k)ad Garbage Truck.doc
Interoffice Memo
To: Jim Hansz, Public Works Director
From: Terri Loudermilk, Administrative Coordinator <
Date: 11/19/2004
Re: Rear Loading Refuse Collection Truck & Body
The fiscal year 2004/05 Solid Waste budget includes an appropriation of
$125,000 for the purchase of a new Rear Loading Garbage Truck. Bid
specifications were developed which included an option for the possible trade-
in of the 1981 International Garbage Truck. One bid was received by the
November 18, 2004 deadline.
Tri State Truck & Equipment $134,662 (Base Bid)
$132,662 (W/Trade-In)
Tri State Truck & Equipment's bid was in full compliance with all
specifications. The bid came in higher than the budgeted $125,000 due to the
significant increase in steel since the 2004/05 budget was prepared and also
because of new mandated air pollution regulations.
Tri State Truck & Equipment offered $2,000 for the trade-in of the 1981
International Truck. This likely exceeds what we could expect to receive if
auctioned separately. With the option of the trade-in, the bid is $7,662 over the
budgeted amount. After careful analysis I believe this is a fair price and
recommend awarding the bid to Tri State Truck & Equipment in the amount of
$132,662 w/trade-in.