Auto Side Loader Solid Waste Truck Purchases FY2024-Modified Recommendation Copyrighted
August 7, 2023
City of Dubuque Consent Items # 014.
City Council Meeting
ITEM TITLE: Auto Side Loader Solid Waste Truck Purchases FY2024-Modified
Recommendation
SUM MARY: City Manager recommending City Council approval to amend the FY
2024 Capital I mprovement Budget (5429000003)to include the
purchase of three automated side loader trucks.
SUGGESTED Suggested Disposition: Receive and File;Approve
DISPOSITION:
ATTACHMENTS:
Description Type
MVM Memo City Manager Memo
Budget Amendment and Solid Waste ASL Purchase Staff Memo
Request
Dubuque
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TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Auto Side Loader Solid Waste Truck Purchases FY2024-Modified
Recommendation
DATE: August 2, 2023
Public Works Director John Klostermann is recommending City Council approval to
amend the FY 2024 Capital Improvement Budget (5429000003) to include the purchase
of three automated side loader trucks.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
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Mic ael C. Van Milligen
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Attachment
cc: Crenna Brumwell, City Attorney
Cori Burbach, Assistant City Manager
John Klostermann, Public Works Director
Dubuque
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TO: Michael C. Van Milligen, City Manager
FROM: John Klostermann, Public Works Director
SUBJECT: Auto Side Loader Solid Waste Truck Purchases FY2024-Modified
Recommendation
DATE: July 27, 2023
Introduction
In this memorandum, I will recommend a modification to the recommendation made in
my May 30, 2023, memorandum by recommending we purchase a total of three (3)
automated side loader (ASL) trucks in the current Fiscal Year.
Background
The FY 2024 approved Capital Improvement Budget provides funding ($462,454) for
the replacement purchase of two solid waste semi-automated collection trucks.
The FY 2025 Capital Improvement Budget recommends the purchase of one
Automated Side Loader. Both years require a debt issuance for a portion of the
purchase.
Discussion
With over 17,000 trash carts in service and another 4,900 carts on order, it is time to
change our focus from cart distrubition to the collection vehicle phase. We currenity
have one ASL in service and two ASL units on order. Due to the lead time of the units it
is our recommendation to purchase three ASL units this fiscal year. Upgrading the
current trucks scheduled for replacement in FY 2024 from semi-automated to fully
automated will help us meet the goal of converting to an automated trash collection
system.
The availability of truck chassis and increasing costs has made us research options for
the purchase of these trucks. I am recommending we purchase two ASL trucks in the
current fiscal year along with the ASL truck scheduled for purchase in FY 2025.
We have worked with both Kilburg Equipment and McNeilus Equipment evaluating the
types of ASL they have buy using demonstration units on our routes. The McNielus has
a different style arm and carriage than what we currently use but has received favorable
reviews from our operators.
If this purchase schedule is approved, it is my recommendation we purchase two (2) 24
cubic yard side loader units and one (1) 28 cubic yard side loader unit from McNeilus
Truck and Manufacturing, of Dodge Center, MN. Approval to purchase the automated
side loader solid waste vehicles utilizing the Sourcewell Contract (#091219-MCN)
allows us to lower our cost per unit and reduce delivery time since the truck chassis are
already on order by the manufacture and the ASL units are manufactured in Minnesota.
Budget Impact
Below is the recommended equipment purchase.
One Unit Freightliner M2-106 28 CY McNeilus ASL $335,698.00
Two Units Freightliner M2-106 24 CY McNeilus ASL $661,274.00
Total Cost $996,972.00
Funding of three units will require additional debt. Chief Financial Officer Jenny Larson
has determined that purchasing three ASL units would require additional debt of
$910,081. The additional debt service will have a $0.46 or approximately 2% effect on
the rate for curbside collection. It is not yet clear how the percentage increase will be
determined by the size of the cart.
This rate increase would be reflected during the FY 2025 budget process due to the
bond issuance not occurring until Spring of 2024. If approved, we can place trucks on
order now with the intention of increasing rates in FY 2025 to cover repayment. If
ordered now, curbside collection could have six (6) ASL units in service before the end
of calendar year 2024.
Action Required
I am requesting your approval to amend the FY 2024 Capital Improvement Budget
(5429000003) to include the purchase of three automated side loader trucks. I am also
recommending that we purchase those three (3) automated sides loaders from
McNeilus Truck and Manufacturing of Dodge Center, Minnesota for a total purchase
price of$996,972.00.
CC: Arielle Swift, Assistant Public Works Director
Jacob Jansen Resource Management Supervisor
Tom Kuhle, Fleet Maintenance Supervisor
Jenny Larson, Chief Financial Officer
Tony Breitbach, Purchasing and Contracts Coordinator