Agenda

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City Council Regular Meeting

Meeting Date:

01/16/2024

BACKGROUND

Replacement of the City’s current sewer vactor truck was approved in FY 23/24 budget. After research and due diligence, City staff has identified the Vactor 2100i combination sewer cleaner as the preferred replacement model. Additionally, staff believes that the best course of action is to lease the vehicle (with an option to buy). Kinloch Equipment & Supply offers a lease program called Mile After Mile, an option which provides several advantages to the City, including:

Equipment built to the specifications and requirements as outlined in the accompanying proposal.
A five (5) year bumper-to-bumper warranty for both the truck chassis and sewer cleaner
All repairs & maintenance included (except rodder hose)
Guaranteed minimum 95% equipment availability supported by free of charge loaner equipment in the event of protracted downtime.

This program is designed to offer a low, fixed cost of operation and a correspondingly high level of equipment availability. The program is offered as a five (5) year lease with the choice of monthly or annual payments. Upon the conclusion of the five (5) year lease term, the City of Schertz has first option to purchase this equipment for $269,952. However, the City is under no obligation to exercise this option and can opt to return the equipment to Kinloch Equipment & Supply, Inc. with no further financial obligation. Lease financing will be through Elite Finance Group.

Though this program is offered by Kinloch Equipment & Supply, and a separate program agreement will be executed with Kinloch, the actual vehicle award will be made to Doggett Freightliner of South Texas, LLC, as only a franchise motor vehicle dealer may title, register, and plate new motor vehicles within the State of Texas. Doggett Freightliner of South Texas, LLC is the exclusive BuyBoard contract holder for the Freightliner 114SD chassis as offered through this program (BuyBoard Contact # 601-19).

GOAL

Approval of Resolution 23-R-137 to replace the City's sewer vac truck by entering into a program agreement with Kinloch Equipment & Supply for the Mile After Mile Lease program and Doggett Freighliner of South Texas for the build and titling of the truck.

COMMUNITY BENEFIT

This truck is used for removal of sewer backup and other debris that gets caught up in our manholes and lift stations that are the main causes of most spills. In order to avoid spills and keep our pump stations running smoothly, this lease and maintenance agreement for a new Sewer Vactor Truck will allow for more efficient sewer maintenance of our facilities and decrease the down time we have experienced with our current aged equipment. This vehicle is vital to our wastewater operations at the City and entering into this 5-yr lease term will provide for the current need of the City as well as the flexibility to update in a more appropriate time to avoid the current impacts we have had to our operations with the old Vactor Truck.

SUMMARY OF RECOMMENDED ACTION

FISCAL IMPACT

The total cost for the chassis and Vactor 2100i is $543,203. Depending on the financing option, it would be five (5) annual payments of $99,792 or sixty (60) monthly payments of $8,561. $675,000 was approved in the FY 23/24 budget for this replacement, but staff was able to identify a much more cost-effective solution in the proposed program.

RECOMMENDATION

Approval of Resolution 23-R-137.

Attachments
Resolution 23-R-137 with attachements