To: Honorable Mayor and Members of Town Council
Through: David L. Corliss, Town Manager
From: John Arney, CPFP, Fleet Services Manager
Title
Resolution Waiving the Formal Written Bidding Requirement on the Basis of Sole Source and Approving a Purchase Agreement Between the Town of Castle Rock and McCandless Truck Center, LLC for One (1) Class 8 Dump Truck
Body
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Executive Summary
The Fleet Services Manager is requesting approval of a purchase agreement with McCandless Truck Center for the purchase of one (1) class 8 dump truck. This is a new asset that is needed to maintain existing snow management operations as new streets are being added to the Town’s inventory. The truck is available for immediate delivery and is of the same specification as another truck currently in the fleet. Taking advantage of this availability saves the Town significant time in the acquisition phase. It is fully equipped with a dump body and snow removal equipment and meets the immediate needs of the Streets Division. This request is fully funded through contributions to the Vehicle Replacement Fund and savings from the Transportation Fund. We are seeking Council approval to move forward with the purchase order.
History of Past Town Council, Boards & Commissions, or Other Discussions
Council has approved single purchases available from the dealer lot in the past.
Discussion
This purchase will replace two (2) CV515 (CV) trucks for the Streets Division. The CV’s were intended to fill a modified plow format. However, with the CV’s inability to be fully utilized for plowing snow, along with the rapid growth of the South side of Town, a new CDL class 8 truck is needed. The Streets Division anticipates the need to add a 12th primary streets plow route to the line up as early as the 27-28 snow season. An opportunity has arisen where a new truck, of the exact same build as one purchased two years ago, is available for a discounted price. This unit is a tandem axle with an 11’ plow blade and is well suited for the new route planned for the Dawson Trails area. An inspection of the truck capabilities and a weight was carried out by the Streets Division supervisors and the Fleet Services Manager. The truck can perform snow removal operations safely within the manufacture’s gross vehicle and axle weight ratings.
Departments contribute monthly to the Fleet Fund for the replacement of vehicles. The New Vehicle Purchasing and Replacement Policy provides guidelines for determining optimal replacement of assets. Although the CV trucks have not reached their optimal replacement points, they are not reliable to perform snow removal operations on primary routes. The two CV trucks will be removed from the replacement program and reassigned to other functions within the Streets Division. They will not be replaced once they reach their end of life. Funds that have been contributed toward future replacement of these two trucks will be used to help fund the purchase of the new truck. The new truck would then be added to the vehicle replacement fund for future replacement.
This request is seeking approval of a Sole Source purchase under exception 1 as part of a formally awarded CDOT bid. CDOT formally solicited bids IFB 24-049RM and IFB 24-052RM. McCandless Truck Center was awarded contract 371002313 and Auto Truck Group dba Holman was awarded contract 371002331. The awards meet specifications and offer the best value to the Town.
In addition, this new truck is identical to unit 446 in the fleet and offers standardization of existing equipment. The truck has been reliable and has not had any operational concerns for the Streets Division. The discounted price for this purchase is slightly lower than recent purchases approved by council on September 1. This procurement method meets the Town’s Purchasing Policy and saves acquisition time and offers the best value to the Town and immediate delivery. The Legal Department has drafted the purchase agreement for this purchase.
Deliverable
The truck is available at McCandless Truck Center in Aurora, Colorado. The Town can take delivery after council approval and receipt of a purchase order.
Budget Impact
The cost of this purchase is $333,216.49. No budget amendment is required for this purchase. A combination of funding sources will pay for this purchase, which includes $144,217 in total contributions and $189,000 of savings from several operational budgets in the 120 Transportation Fund. The initial purchase will be made by the Vehicle Replacement Fund 221-8100-481.70-40. Operational savings from the 120 Transportation Fund will be transferred to the Fleet Fund in 2026 to make it whole with available savings from this year’s budget.
Staff Recommendation
The Public Works Commission, and Staff recommends approval of the purchase agreement for the Truck.
Proposed Motion
“I move to approve the Resolution as introduced by title.”
Alternative Motions
“I move to approve the resolution as introduced by title, with the following conditions: (list conditions).
“I move to continue this item to the Town Council meeting on (date) to allow additional time to (list information needed).”
Attachments
Attachment A: Resolution
Attachment B: Purchase Agreement