Memorandum

City of Lawrence

Finance Department

TO:	David L. Corliss, City Manager
FROM:	Alan Landis, Purchasing Specialist
Date:	September 4, 2012
RE:	Purchase side-load refuse truck (Bid #1245)

Award bid for one (1) side load refuse truck for Public Works Department to Downing Sales and Service for $168,565.

In July, Public Works Solid Waste requested bids for a fully automated side load refuse truck to replace a 2004 rear load refuse truck, as part of the automation efforts as equipment is traded.  The truck includes an automated arm that will pick up and empty the roll-out carts. Solid Waste equipment is replaced according to our equipment replacement schedule.  The equipment replacement schedule is based on age, mileage, hours of use, and cost of maintenance and upkeep.  We received nineteen bids from five companies.  The difference in the bid amounts shown on the attachment is due to different combinations of the make of the chassis, the make of the packer, and transmission. 

Two rear-load refuse trucks were budgeted for replacement in 2012.  The department was uncertain of our ability to accommodate both replacements within our budget when we transitioned to the automated side-loader.  Based on the bids received, and the trade-in offer, we are able to replace two units in 2012 within our existing resources.  The vendor agreed to honor the bid price and trade-in offer for an additional unit. 

Solid Waste has a 2004 rear load refuse truck that meets the criteria for replacement. The low bid from Downing offered $55,000 for the truck as a trade in price.  We have been monitoring trucks on Gov Deals and they have recently sold three.  Two 2004s, one for $41,540 and the other for $33,250, and they sold a 2005 for $46,250.00. 

This purchase was approved in the 2012 budgeting process.

Please see attached bid summary.

Recommendation Action:

Award bid for one (1) side load refuse trucks for Public Works Department to Downing Sales and Service for $168,565  (Public Works/Solid Waste).

cc:	Cynthia Wagner	Chuck Soules	Steve Stewart
	Dianne Stoddard	Tammy Bennett	Diane Trybom
	Jonathan Douglass	Bobbie Walthall	Craig Pruett