title
APPROVE A RESOLUTION FOR THE PURCHASE OF ONE HYDRO-VAC SEWER CLEANING UNIT THROUGH A COOPERATIVE PURCHASING AGREEMENT WITH ATLANTIC MACHINERY, INC.
recommended action
RECOMMENDATION
It is recommended that the City Council adopt a resolution to:
1. Approve findings pursuant to Stockton Municipal Code (SMC) section 3.68.070 in support of an exception to the competitive bidding process.
2. Approve a Cooperative Purchasing Agreement with Atlantic Machinery, Inc. (AMI) of Silver Springs, MD, in the amount of $418,979.65, for the purchase of one Vac-Con hydro-vac sewer cleaning unit through a National Joint Powers Alliance (NJPA) contract.
It is also recommended that the City Manager be authorized to take appropriate and necessary actions to carry out the purpose and intent of this resolution.
body
Summary
The replacement purchase of one hydro-vac sewer cleaning unit used by the Municipal Utilities Department (MUD) is recommended. The primary use of this specialized unit is to remove obstructions from underground utilities, such as sanitary sewers, storm drains, and pump stations. It is recommended that Council approve a resolution authorizing the City Manager to execute a Cooperative Purchasing Agreement with AMI, in the amount of $418,979.65, for the purchase of a replacement unit through a NJPA contract. The NJPA is a public agency based in Minnesota that issues cooperative contracts to streamline the procurement process for public agencies and take advantage of volume purchasing. Use of a cooperative contract streamlines administrative procedures while maintaining the benefits of a competitive procurement and bulk pricing.
DISCUSSION
Background
The MUD utilizes hydro-vac sewer cleaning units (truck-mounted hydraulic cleaning and vacuum systems) to remove solid and viscous obstructions from underground utilities, such as sanitary sewer lines, storm drains, and pump station wet wells. These specialized trucks are responsible for responding to emergency calls to resolve problems such as sanitary sewer overflows, and for routine maintenance cleaning of sewer lines.
The City has six hydro-vac sewer cleaning units in the equipment fleet. The oldest is Unit No. 2667, a 2000 International Harvester Vactor unit that has accumulated 1,420 hours of running time. This unit is 17-years-old and exceeds the typical industry replacement cycle of 10 years. Unit No. 2667 breaks down frequently, and due to its age the availability of parts is limited and results in repair delays and higher costs. A new hydro-vac unit will be more efficient, use less fuel and water, and allow crews more direct service time. The Fleet Manager recommends that Unit No. 2667 be replaced with a new Vac-Con unit to reduce maintenance and operating costs, and increase productivity.
Present Situation
Staff proposes to purchase the replacement unit from AMI through a Cooperative Purchasing Agreement with the NJPA. The NJPA is a public agency based in Minnesota that serves as a contracting agency to streamline the procurement process for public agencies and take advantage of volume purchasing. All NJPA contracts have been competitively bid, solicited nationally, reviewed, evaluated by a committee, and then recommended to the NJPA Board of Directors for consideration of award. The use of these contracts is optional, and is available to California State and local government agencies.
The specification for the Vac-Con hydro-vac sewer cleaning unit available through the NJPA contract meets the City’s requirements for this type of equipment. By accessing this type of Cooperative Purchasing Contract, procurement costs are reduced because the NJPA obtains low bids for volume purchasing and local agencies avoid the expense associated with conducting the bid process. Staff time and associated costs to develop specifications and prepare documents are also minimized.
The recommended resolution authorizes the replacement purchase of one hydro-vac sewer cleaning unit from AMI through the NJPA contract at a total cost of $418,979.65. The unit being replaced will be removed from the fleet and sold at auction.
Findings
In accordance with SMC section 3.68.070, Council may approve findings which support an exception to the competitive bidding process. The proposed findings include:
1. The NJPA established a Cooperative Purchasing Contract for the purchase of a Vac-Con hydro-vac sewer cleaning unit from AMI.
2. The NJPA established this Cooperative Purchasing Contract pursuant to a competitive bidding process.
3. The bid specification used by the NJPA is compatible to the City’s standards.
4. Use of an existing Cooperative Purchasing Contract will simplify the procurement process and lower administrative costs.
5. Use of an existing Cooperative Purchasing Contract is in the public interest because it leverages the combined purchasing power of multiple agencies to obtain lower costs.
6. The City is utilizing a Cooperative Purchasing Agreement through the NJPA cooperative contract in accordance with SMC section 3.68.070.A.5.
The purchase of one Vac-Con hydro-vac unit from AMI utilizing a Cooperative Purchasing Agreement through the NJPA contract is recommended.
FINANCIAL SUMMARY
The total purchase price of one hydro-vac sewer cleaning unit is shown below.
One 2017 Vac-Con Hydro-Vac Unit $384,385.00
Sales Tax (9%) $ 34,594.65
Total Purchase Price $418,979.65
There are sufficient funds available in the MUD Wastewater Utility - Sanitary Sewer Capital Outlay - Vehicle Acquisition Account No. 431-4332-606 for the purchase of one Vac-Con hydro-vac sewer cleaning unit from AMI in the amount of $418,979.65.
There is no impact to the City’s General Fund as a result of taking the recommended action.