HomeMy WebLinkAboutA020 - Resolution waiving the City's Purchasing Policy requirement for competitive bidding and awarding a contract to Ascendance Trucks Midwest of Altoona, IA, for the purchase of six semi-trucksITEM #:24
DATE:05-12-26
DEPT:FLEET
SUBJECT:PURCHASE OF SIX SEMI-TRUCKS FOR RESOURCE RECOVERY FOR THE
NEW R3C
COUNCIL ACTION FORM
BACKGROUND:
With the anticipated opening of the Resource Recovery Recycling Campus (R3C) in 2027, the
City needs to purchase semi-trucks to haul refuse to the Carroll County Landfill and recyclable
materials to a material recovery facility. It is estimated that over 65,000 tons of materials will
need to be transported each year, resulting in over 2,600 truck trips annually. These will be the
first semi-trucks the City purchases for hauling in this continuous, heavy-duty capacity.
Staff from Resource Recovery and Fleet discussed the purchase of the trucks and
determined that the best value would be obtained by using a cooperative contract to
purchase the semi-trucks from International Trucks. There are a number of reasons to
use a cooperative contract versus obtaining competitive bids. It is imperative that the trucks
run as much as possible and can use B100 to meet the City’s sustainability goals. The
proposed semi-trucks are International brand with the local dealership being Ascendence
Truck Centers located in Altoona, IA. There is also an Ascendence dealership in Carroll, Iowa,
where the refuse will be hauled. This will reduce the amount of towing back to Des Moines and
allow the trucks to be repaired at an authorized dealership near the new landfill if issues arise
during operations.
International trucks and specifically Ascendance Truck Centers have been involved in
installing the Optimus B100 system on the City's existing snowplow trucks. The B100 system
will be installed by Ascendance and does not require the City to install the system after the
truck is delivered. International trucks also use a Cummins engine, which is the engine in all
the snowplow trucks that use B100. Fleet Services staff is familiar with maintaining,
diagnosing, and repairing Cummins engines. The Cummins engine also allows for the easy
acquisition of parts, and can be worked on by any authorized heavy truck repair center.
Coordinating these efforts under one vendor will provide for less downtime, which is an
advantage for the operations of the new R3C.
In the financial model prepared for the R3C it was assumed that the trucks would achieve a
fuel efficiency of 7.0 miles per gallon, resulting in the consumption of 303,680 gallons in the
first full calendar year of operation. It is estimated that the International trucks selected will
achieve this fuel efficiency based on the anticipated operations. However, semi truck vendors
will not provide official estimates of fuel mileage as it is impacted by drivers, speed, weather,
and weight of loads.
The cost for the trucks is established through a national cooperative contract with
Sourcewell of Staples, MN. The State of Iowa purchases from International through the
same contract. The cost for each truck would be $205,064, including selected options
1
and an extended 5-year, 400,000-mile engine warranty. Per the Sourcewell contract, this
purchase price provides a 49.5% discount off the listed price. The City would be
purchasing six trucks for a total of $1,230,384. This purchase will expedite the delivery
to the City to have the trucks by winter of this year to ensure readiness to haul refuse
as soon as it is possible to do so.
Funding for this purchase comes from the 2026/27 Resource Recovery and Recycling
Campus Mobile Equipment Capital Improvements Project. This project contains $2,340,000 in
contributions from the Electric Fund due to savings realized in operational expenses at the
Power Plant once transfer operations begin and waste-to-energy operations cease.
The procurement of the transfer trailers will proceed utilizing traditional bidding methods.
Results will be brought to City Council for review and approval at a future meeting. In addition,
staff is pursuing the purchase of a used "yard truck" that will be used to move trailers around
the R3C site and haul them to Fleet Services for repairs.
ALTERNATIVES:
1. Waive the Purchasing Policies and Procedures requirement for competitive bids and
award a contract to Ascendance Trucks Midwest of Altoona, IA, for the purchase of six
semi-trucks in the amount of $1,230,384.
2. Do not approve the purchase.
CITY MANAGER'S RECOMMENDED ACTION:
Approving this contract to obtain the six semi-trucks will allow for the R3C to have
reliable, sustainable semi-trucks in time for the beginning of hauling operations. Staff
believes the proposed trucks and procurement approach will suit the needs of
Resource Recovery and Fleet Services staff as this new operation begins. Therefore, it
is the recommendation of the City Manager that the City Council adopt Alternative No. 1 as
described above.
2