TO:
Honorable Mayor and Members of the City Council
THROUGH:
Mark Danaj, City Manager
FROM:
Bruce Moe, Finance Director
Tony Olmos, Public Works Director
Shawn Igoe, Water Supervisor
Gwen Eng, Purchasing Manager
SUBJECT:Title
Purchase of One Budgeted Vacuum Excavation Machine from E.H. Wachs in the Amount of $74,237.53 (Finance Director Moe).
WAIVE FORMAL BIDDING; APPROVE
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Recommended Action
RECOMMENDATION:
Staff recommends that the City Council waive formal bidding per Municipal Code Section 2.36.140 (waivers) and approve the purchase of one budgeted vacuum excavation machine from E.H. Wachs in the amount of $74,237.53.
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FISCAL IMPLICATIONS:
Funds totaling $97,000 are budgeted in fiscal year (FY) 2015-16 for the purchase of this equipment. This equipment costs $74,237.53; the remaining budgeted funds of $22,762.47 will be returned to fund balance.
BACKGROUND:
The Water Maintenance Division of the Public Works Department provides daily operations and maintenance of the City’s water distribution and delivery systems. This includes installation and repairs of water meters, pipelines, fire hydrant and gate valves, in order to provide reliable domestic, business and fire protection water service to the community.
DISCUSSION:
A new vacuum excavation machine was approved in the current year budget. This specialized machine is equipped with multi-functional features, including:
• High Capacity Vacuum - for emergency water main break excavations, removal of sediment buildup from reservoirs, water system valve cans, and large water meter vaults
• Jackhammer - for removal of pavement and concrete
• Valve Operator - for exercising water system gate valves to ensure smooth operation for routine maintenance and emergency valve shut downs
• Trailer Mounted - this allows the unit to be towed and utilized by any division in the Public Works Department requiring similar maintenance and emergency needs.
Staff researched the market for potential solutions because of the variable features offered by manufacturers associated with this type of machinery. Six potential manufacturer’s representatives were invited to provide on-site demonstrations. After review, four were eliminated for one or more of the following reasons: 1) the unit lacked either the vacuum excavator, or valve operator, 2) the weight of the unit was too heavy to be towed by the majority of the Public Works service vehicles, 3) the unit was too large to access narrow streets and alleyways, and; 4) truck mounted equipment would require a dedicated vehicle that is currently not available in the City’s fleet. The two remaining units for consideration are manufactured by Wachs and Pacific Tek.
In evaluating the two remaining units, staff determined that the Wachs unit is the best option to meet the City’s needs, largely based on their proprietary software. The City currently has another Wachs unit that is utilized to perform valve maintenance, which includes proprietary Valve Operator Data Management Software. This database tracks valve size, make and model number of the City’s 2,000 valves; valve exercise frequency; torque specifications for safe manipulation of the valve; and the required isolation turns needed to assure full closure. Historical data is easily recalled for use in valve replacement identification, water main isolation during water emergency main breaks, and routine maintenance recordation needed for regulatory reporting.
The Pacific Tek product, which has its own proprietary software, is not compatible with the Wachs software. As a result, purchasing the Pacific Tek unit would require manual database management to maintain and coordinate the data from two sources into one centralized repository for this important information. Additionally, Pacific Tek’s system was determined through legal channels to be infringing on Wachs’ intellectual property. The infringement entailed five patented features including the valve operator, which is one of the major components. For these reasons, staff eliminated Pacific Tek’s machine from consideration.
For water agencies in California, the Wachs vacuum excavation equipment is available only directly from the manufacturer. As a result, competitive formal bidding for the Wachs product is not possible. Accordingly, staff recommends City Council authorize the issuance of a purchase order to E.H. Wachs in the amount of $74,237.53 for the purchase of a vacuum excavation machine. If this purchase is approved, the new unit will arrive in approximately 90 days.
PUBLIC OUTREACH/INTEREST:
There is no public outreach required for this item.
ENVIRONMENTAL REVIEW
There is no environmental impact associated with this item.
LEGAL REVIEW
This purchase will be effected through a standard City purchase order with the City’s customary terms and conditions applied. No further legal review is required.