REQUEST FOR CITY COUNCIL AND
CORONA UTILITY AUTHORITY ACTION
DATE: 05/03/2023
TO: Honorable Mayor and City Council Members
Honorable President and Board Members
FROM: Utilities Department
SUBJECT:
Title
ISSUANCE OF PURCHASE ORDER TO HAAKER EQUIPMENT COMPANY FOR THE PURCHASE OF A COMPRESSED NATURAL GAS VACTOR SEWER CLEANER TRUCK
End
EXECUTIVE SUMMARY:
This staff report asks the City Council to approve the purchase of a Compressed Natural Gas Vactor 2112 sewer cleaner (combination vacuum and jetting) truck from Haaker Equipment Company in the amount of $719,606.88 using Sourcewell National Cooperative Contract. The primary function of the combination vacuum and jetting truck is to aid in the maintenance of the City's sewer system by removing debris and grease from sewer mains and lift stations, while also providing a reliable and efficient option for hydro-excavation during utility repairs that require open trenching methods.
RECOMMENDED ACTION:
Recommended action
That the City Council:
a. Approve the purchase of a Compressed Natural Gas Vactor 2112 Sewer Cleaner from Haaker Equipment Company in the amount of $719,606.88.
b. Make a determination under Corona Municipal Code Section 3.08.140(C), that competitive bidding has been satisfied based upon the reasons provided in the “Basis for Determination of Competitive Bidding” section of this report.
c. Authorize an appropriation in the amount of $70,783.78 from the Water Utility Fund 570 to the Vehicle Procurement Project No. 68340.
d. Authorize an appropriation in the amount of $70,783.78 from the Sewer Utility Fund 572 to the Vehicle Procurement Project No. 68340.
e. Authorize the City Manager, or his designee, to negotiate and execute non-substantive extensions, change orders, purchase orders, and amendments up to the amount authorized by Corona Municipal Code Section 3.08.080(I), which is equivalent to 10% or $71,960.69.
That the Corona Utility Authority review, ratify, and to the extent necessary, direct the City Council to take the above actions.
Body
BACKGROUND & HISTORY:
The Utilities Department (UD) maintains the City of Corona’s sewer mains and lift stations. UD utilizes contractual cleaning services for approximately 440 miles of sewer mains and 15 lift stations. Sewer cleaning is more effective when both the jetting and vacuum cleaning systems are working in combination. The Compressed Natural Gas (CNG) Vactor 2112 combination jetting and vacuum truck is an essential piece of equipment that will help with emergency blockages in sewers to minimize sanitary sewer overflows. During sewer main blockages, it takes a contractor an hour to respond to an emergency (as outlined in the contractor’s agreement). To facilitate more immediate response times and to enhance maintenance capabilities, UD has identified the need to purchase its own Vactor sewer cleaner truck. Additionally, this equipment will be utilized for hydro-excavation in instances where digging with equipment is not possible due to conflicts with other utilities.
ANALYSIS:
The Capital Improvement Plan (CIP) budget for Fiscal Year 2023 included approval for the purchase of one Vactor sewer cleaner truck for UD. Currently, Public Work’s Street Maintenance Service Division owns and operates a Vactor sewer cleaner truck primarily to clean out City-maintained storm drain lines, culverts and catchments. UD requested and was provided a demonstration by Haaker Equipment Company of a jetting and vacuuming truck to show the equipment capabilities in the field. UD has determined that the acquisition of a similar truck would significantly improve the City's ability to address sewer blockages and maintenance needs.
BASIS OF DETERMINATION OF COMPETITIVE BIDDING
Staff believes that Competitive Bidding has been accomplished for these purchases pursuant to Corona Municipal Code (CMC) Section 3.08.140(C), which states as follows:
“Competitive bidding already completed. When the purchasing agent and the authorized contracting party, with the approval of the City Manager, determines that:
(1) A competitive bid procedure has been conducted by another public agency including, but not limited to, another local agency, the state through the California Multiple Award Schedule (CMAS), the federal government through the General Services Administration (GSA), the U.S. Communities Government Purchasing Alliance, or the Western States Contracting Alliance (WSCA); and
(2) The price to the city is equal to or better than the price to that public agency.”
Per South Coast Air Quality Management District (SCAQMD) Rule 1196, the City may not purchase new diesel equipment except in the case of emergency response units equipped with lights and sirens. Purchase of the Vactor sewer cleaner truck would not classify as “emergency response;” as such, the new truck must be powered by alternative fuel. The City has invested in infrastructure for CNG fueling for the transit buses, dial-a-ride, and some heavy equipment thereby making CNG the most feasible alternative fuel for this unit.
On August 24, 2021, a Request for Proposals (RFP) No. 101221, was published by Sourcewell, a State of Minnesota local government unit and service cooperative on the Sourcewell Procurement Portal website and newspaper publications throughout the United States inviting interested parties to submit proposals for Sewer Vacuum, Hydro-Excavation, and Municipal Pumping Equipment with related accessories and supplies. Sourcewell received and opened 22 proposals on October 12, 2021. All proposals were evaluated by Sourcewell staff. Sixteen proposals were recommended for award.
Sourcewell awarded Contract No. 101221-VTR to Vactor Manufacturing who offers a large selection of sewer cleaners, excavation units, and jetters of various sizes. Their dealer network covers the United States and Canada to provide sales and service support for Sourcewell participating entities. Certain equipment models feature a water-recycling feature allowing them to reduce water needs in the cleaning process. Vactor pricing reflects solid discounts at 3% under list price on equipment and competitive pricing for rental units.
Corona’s Purchasing Division seeks out cooperative purchasing agreements because they allow the City to save time, cut administrative costs, improve agency efficiency and maximize City budgets by securing collective competitive pricing. By utilizing cooperative purchasing, the City will be leveraging a previous purchasing solicitation that another government agency performed.
Based on this previously conducted bid process by Sourcewell, the Corona Utilities Department requests approval to purchase the Vactor sewer cleaner truck from Haaker Equipment Company, the authorized Southern California Vactor dealership, in the amount of $719,606.88.
Other public agencies in California have procured CNG Vactor trucks through Haaker Equipment Company using the Sourcewell cooperative purchasing agreement. The following is the list of agencies:
|
Public Agency |
CNG Vactor Truck Model |
Year |
|
City of San Fernando |
Vactor Impact |
2021 |
|
Orange County Sanitation District |
Vactor 2115 Plus Jet Rodder |
2021 |
|
City of Fullerton |
Vactor 2112i Plus Sewer Cleaner |
2022 |
|
City of Montclair |
Vactor CNG 2110 Plus Sewer Cleaner |
2022 |
|
City of Whittier |
Vactor CNG 2110i Sewer Cleaner |
2022 |
After reviewing product information and assessments of equipment performance, staff recommends the Vactor 2112 jetting and vacuuming combination sewer cleaner equipment to be built on a Freightliner CNG chassis, primarily due to the Freightliner service trucks that the City currently owns which provides exceptional performance, durability, and history of minimal corrective maintenance.
Staff recommends approval for the purchase of a CNG Vactor 2112 sewer cleaner truck from Haaker Equipment Company for the quoted price. The 10% change order authority may be utilized to cover any additional costs that may be required to upfit the vehicle.
FINANCIAL IMPACT:
A total of $650,000 was appropriated in the FY 2023 Capital Improvement Plan budget for the requested equipment. However, additional funding is needed to account for the contingency amount. Approval of the recommended actions will result in an appropriation in the amount of $70,783.78 from the Water Utility Fund 570 and $70,783.78 from the Sewer Utility Fund 572 to the Vehicle Procurement Project No. 68340. This includes 10% contingency which is covered under the Change Order Authority per CMC Section 3.08.080(I). The appropriation request in the Water Utility Fund 570 will result in a potential loan from the Sewer Utility Fund 572 at fiscal-year end, if needed, based on actuals.
|
Fund |
Project # |
Requested Appropriation |
Current Amount |
Balance After Appropriation |
|
570 |
68340570 |
$70,783.78 |
$325,000.00 |
$395,783.78 |
|
572 |
68340572 |
$70,783.78 |
$325,000.00 |
$395,783.78 |
|
Overall totals: |
$650,000.00 |
$791,567.56 |
ENVIRONMENTAL ANALYSIS:
This action is exempt pursuant to Section 15061(b)(3) of the Guidelines for the California Environmental Quality Act (CEQA), which states that a project is exempt from CEQA if the activity is covered by the common sense exemption that CEQA applies only to projects that have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. This action involves the purchase of a CNG Vactor 2112 sewer cleaner truck, and there is no possibility that this purchase will have a significant effect on the environment. Therefore, no environmental analysis is required.
PREPARED BY: AFTAB HUSSAIN, MAINTENANCE MANAGER
REVIEWED BY: TOM MOODY, DIRECTOR OF UTILITIES
Attachments:
1. Exhibit 1 - Haaker Equipment Company CNG Truck Quote
2. Exhibit 2 - Sourcewell Contract with Vactor Manufacturing
3. Exhibit 3 - Sourcewell RFP Documentation