AGENDA REPORT
REQUEST FOR CITY COUNCIL ACTION
DATE: June 5, 2019.
TO: Honorable Mayor and City Council Members
FROM: Maintenance Services
SUBJECT:
Title
City Council consideration of an Exception to Bidding to Haaker Equipment Company for a Vactor CNG 2110 Plus Sewer Cleaner using the Sourcewell (formerly National Joint Powers Alliance) Cooperative Purchasing Agreement.
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RECOMMENDED ACTION:
Recommended action
That the City Council:
1. Authorize an Exception to Bidding pursuant to Municipal Code Section 3.08.140 (C) “Competitive Bidding Already Completed” to Haaker Equipment Company of La Verne, CA, in the amount of $534,781.39 for a Vactor CNG 2110 Plus Sewer Cleaner.
2. Authorize the Purchasing Agent to issue a purchase order to Haaker Equipment in the amount of $534,781.39.
3. Authorize an appropriation of $534,781.39 from the Rideshare-Trip Reduction Fund 224 (AB 2766 Subvention Funds) for the purchase.
4. Authorize the continuing appropriation of funds if not expended or encumbered by June 30, 2019.
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ANALYSIS:
The operating budget for Fiscal Year 2018-19 included approval for replacement of one Vactor sewer cleaning truck for the Maintenance Services Department. The sewer cleaning truck is utilized by the Streets Division primarily to clean out City-maintained storm drain lines, culverts and catchments to allow for proper drainage during seasonal rain events. The existing unit #43022 is a 1998 Ford F-800 with over 150,000 miles; originally purchased for $157,714.83. It is diesel-powered and in need of replacement.
Per South Coast Air Quality Management District Rule 1196, the City may not purchase new diesel equipment except in the case of emergency response units equipped with lights and sirens. Replacement of this unit would not classify as “emergency response” and as such the new truck must be powered by alternative fuel. The City has invested in infrastructure for compressed natural gas (CNG) fueling for the transit buses, dial-a-ride, and some heavy equipment and thus the most feasible alternative fuel for this unit is CNG. The Fleet division requested $402,500 in the Fiscal Year 2018-19 Operating Budget, in the Fleet Operations Fund, to replace this unit ($400,000 for the unit and $2,500 for upfit costs).
The Fleet and Street Maintenance staff requested product and performance information amongst top manufacturers such as Camel, Vacon and Vactor and viewed several product demonstrations. After product information reviews and assessments of equipment performance, the staff recommends the Vactor-brand sewer cleaning equipment to be built on a Freightliner CNG chassis, on the primary basis of its exceptional performance, durability, and City’s experience with historical low corrective maintenance of currently owned Freightliner service trucks. Additional benefits include the ease of use for staff to train and operate due to their familiarity with Vactor equipment. Federal Signal, the parent company of Vactor, participated in the Sourcewell (formerly National Joint Powers Alliance) cooperative bid process and was awarded under contract number 122017-FSC for this type of vehicle. Haaker Equipment Company is the local authorized distributor of Vactor trucks. The Maintenance Services Department requests an exception to bid to Haaker Equipment Company to obtain a Vactor sewer cleaning truck as this product has been cooperatively bid.
Staff recommends approval of the quoted price plus 3% contingency for additional costs during upfit for a total purchase order of a $534,781.39. The funding for the vehicle purchase will be AB 2766 Subvention Funds.
COMMITTEE ACTION:
Not applicable.
STRATEGIC PLAN:
Not applicable.
FISCAL IMPACT:
Approval of the recommended actions will appropriate $534,781.39 in the Rideshare-Trip Reduction Fund 224 (AB2766 Subvention Funds) for the vehicle purchase. Funding of $402,500 was originally included in the Maintenance Services’ Fiscal Year 2018-19 operating budget in the Fleet Operations Fund 682. However, upon further review by staff, this purchase is an eligible expenditure for AB2766 Subvention Funds. The $402,500 originally budgeted for this project in Fund 682 will return to fund balance.
On an annual basis, the General Fund contributes $22,159.00 (Fiscal Year 2018-19 motor pool rate) to the Fleet Operations Fund for replacement costs, fuel, and maintenance/operations. Beginning with Fiscal Year 2019-20, the motor pool rate for this vehicle will no longer include the replacement portion, with an estimated annual cost of $5,053.00 (re-evaluated each year based on a variety of factors). The replacement cost will be addressed by utilizing General Fund reserves or fund balance when the replacement is due, estimated to be approximately 15-20 years.
If funds are not expended or encumbered by June 30, 2019, the budget will roll forward to Fiscal Year 2019-20 to complete the purchase.
ENVIRONMENTAL ANALYSIS:
No environmental review is required because the proposed action is not a project governed by the California Environmental Quality Act
PREPARED BY: KATIE HOCKETT, ASSISTANT GENERAL MANAGER
REVIEWED BY: TOM MOODY, GENERAL MANAGER
REVIEWED BY: CITA LONGSWORTH, PURCHASING MANAGER
REVIEWED BY: KERRY D. EDEN, ASSISTANT CITY MANAGER/ADMINISTRATIVE SERVICES DIRECTOR
REVIEWED BY: MICHELE NISSEN, ASSISTANT CITY MANAGER
SUBMITTED BY: MITCHELL LANSDELL, ACTING CITY MANAGER
Attachment:
-Haaker Equipment Company Proposal, March 12, 2019