TO:
Honorable Mayor and Members of the City Council
THROUGH:
David N. Carmany, City Manager
FROM:
Jim Arndt, Public Works Director
Bruce Moe, Finance Director
Gwen Eng, General Services Manager
SUBJECT:Title
Purchase of One Budgeted Replacement Vac-Con Combination Sewer Truck for the Public Works Department from Atlantic Machinery, Inc. in the Amount of $381,304.89.
APPROVE
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Recommended Action
RECOMMENDATION:
Staff recommends that the City Council:
a) Waive formal bidding per Municipal Code Section 2.36.150 (cooperative purchasing); and
b) Award an order to Atlantic Machinery, Inc. for one replacement Vac-Con Combination Sewer truck in the amount of $381,304.89.
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FISCAL IMPLICATIONS:
The Fiscal Year (FY) 2012-2013 budget anticipates the lease/purchase of this vehicle, with an estimated total cost (including vehicle and necessary equipment) of $418,000. Because it will be approximately four months before delivery will take place, staff will obtain bids on the lease/purchase financing and will return to the City Council prior to delivery with the costs and recommendation for award.
DISCUSSION:
The FY 2012-2013 budget includes the replacement of 61 vehicles in the City's fleet. The list includes a wide variety of vehicles that need to be replaced in order to maintain service levels, reduce repair costs and provide for cost-effective fleet operations. The list represents several "catch-up" years when the fleet was not actively replaced due to budget constraints. Where possible and practical, alternative fuel vehicles have been selected. For this requirement, there are no practical alternative fuel trucks that meet the needs of the Utilities Division.
This recommended purchase is for a replacement combination sewer truck (e.g. high pressure water jets and vacuum), which will be used by the Public Works Department for routine sewer and storm drain maintenance. There are 88 miles of sewer pipe in the City that are scheduled to be cleaned twice per year. Proper maintenance reduces the occurrence of sewer backups. The combination sewer truck is utilized daily by City crews to clean sewer pipes through the use of high pressure water streams which scour the inside of pipes, cuts roots and removes debris blockages.
The City's storm water permit from the State Water Board requires that the City control the bacteria levels and trash levels at all storm system outfalls. The only method to meet this requirement is to clean the storm pipes of all debris and sediment that create bacteria and that convey trash to the ocean. This new unit will be used for this purpose. There are 14.25 miles of storm drain pipe in the City, which will be placed on a maintenance schedule consistent with National Pollution Discharge Elimination System (NPDES) requirements.
The current unit, purchased in 2005, has worn to the point that the pressurized holding tank has deteriorated and requires replacement, and the suction ability is less than its peak efficiency. In addition, the truck's engine requires constant maintenance and repairs, and is no longer economically feasible to maintain.
Staff reviewed the various models of combination sewer trucks available in the market. Vac-con was selected based on the following criteria: dual engines, which allow independent and simultaneous operation of the truck's jetter and vacuum systems; high pressure pump, which easily cuts through grease clogs; centrifugal compressor, which allows vacuuming under water without special attachments; telescoping boom, which offers a long reach, necessary when the vehicle cannot park directly adjacent to the sewer access point; and articulating hose reel, which allows for service entry points in sidewalks, street islands and easements. These features offer less wear and tear on the major components, increase production and provides easier truck placement necessary for the City's narrow streets.
Whenever practical, the City "piggybacks" onto contracts which are economically advantageous. Piggybacking is the extension of pricing, terms, and conditions to other governmental agencies at the mutual consent of all parties. This is permissible under the City's Municipal Code, section 2.36.150In this case, Atlantic Machinery, Inc. has offered the City pricing from a competitively bid contract from the National Joint Powers Alliance (NJPA). NJPA is a public agency service cooperative with over 50,000 members throughout the nation. This cooperative solicited bids and made multiple awards for combination sewer trucks. The awards were based on varying models and specifications, with the agreement that the vendors awarded contracts may not offer lower pricing to other agencies than the stated contract amounts.
Atlantic Machinery, Inc. was the lowest bidder form the model specified by the City of Manhattan Beach. Because of the pricing and structure of the competitive bid and resulting contracts, staff believes that the NJPA pricing is the best attainable that meets the City's needs, and that independently bidding the requirement would not result in lower pricing. As a result, staff recommends purchasing the Combination Sewer truck from Atlantic Machinery, Inc.
Based on this available piggyback opportunity, staff recommends City Council award an order to Atlantic Machinery, Inc. in the amount of $381,304.89 for the purchase of one combination sewer truck. If this purchase is approved, the existing unit will be retired and sent to auction. The new vehicle will be placed into service in approximately four months. Staff will obtain bids on the lease/purchase financing and will return to the City Council prior to delivery with the costs and recommendation for award.
CONCLUSION:
Staff recommends that the City Council:
a) Waive formal bidding per Municipal Code Section 2.36.150 (cooperative purchasing); and
b) Award an order to Atlantic Machinery, Inc. for one replacement Vac-Con Combination Sewer truck in the amount of $381,304.89.