Title
Resolution to Approve the Purchase of a Truck Mounted Rodder from Jack Doheny Supplies, Inc. ($87,500.00)
Memorandum
The attached resolution authorizes the purchase of a Sewer Equipment Company of America model 877 rodder unit mounted on a 2008 Ford F-550 chassis from Jack Doheny Supplies, Inc. for a total purchase price of $87,500.00. A rodder is a truck mounted piece of equipment that is used to clear tree roots and other blockages from sewer lines, much like a plumber would use a "snake" to clear drains in a home but on a larger scale. Our typical procedure for sewer line maintenance is to run the rodder down a section of line to clear tree roots, then flush the line using a combination sewer truck, which is a piece of equipment that combines high pressure jetting water and vacuum removal to clean sewers and finally inspect the line with a remote camera.
Currently, we have one rodder truck. It is a 2000 model year unit with 10,250 hours of use. Over the last two years, this unit has been taken to Fleet Service for maintenance and repairs 36 times of which 39% have been for breakdowns. These breakdowns have taken the unit out of service from as little as four hours to as long as one week.
When this vehicle is out of service, the loss of production makes it impossible to stay current on scheduled preventive maintenance of our underground infrastructure. Cleaning of the sanitary sewer system is programmed or scheduled based on the operational history of a segment of the system. A particular portion of the system or specific pipe is periodically cleaned, with the cleaning period being set at an interval shorter than historical time between backups. Failure to meet the cleaning schedule puts the system at risk for clogging and backing up into homes and other structures.
Jack Doheny Supplies, Inc. originally purchased the vehicle we are requesting to purchase as a demonstration unit that was then to be leased to a private contractor. The contractor went out of business in the first month of the lease which has made the little used vehicle available to the City. The vehicle is being offered to the City at $47,500.00 below the cost of a new unit. Although the chassis is three years old, the rodder unit has only 150 hours of use. In addition, Jack Doheny Supplies, Inc. has included a one-year bumper-to-bumper warranty on the chassis and the rodder unit in the purchase price. Given the sporadic availability of used demonstration units for sale, it is not possible to get competitive bids for this unit.
Jack Doheny Supplies, Inc. is the sole representative of the Sewer Equipment Company of America brand in the State of Michigan and is the largest dealer of sewer equipment in the United States.
The current rodder unit is not included in the Fleet Equipment Replacement Fund; therefore, has been budgeted in Field Operation's Sewage Disposal System O&M budget for fiscal year 2011. The new rodder will be included in the Fleet Equipment Replacement Fund and depreciation will be collected annually as part of the Fleet Rates.
Jack Doheny Supplies, Inc. received Human Rights approval on March 29, 2011.
Staff
Prepared by: Thomas A Gibbons, Financial Analyst, Fleet and Facilities
Reviewed by: Craig Hupy, P.E., Manager Field Operations, Matt Kulhanek, Fleet & Facility Manager, Sue F. McCormick, Public Services Area Administrator
Approved by: Roger W. Fraser, City Administrator
Body
Whereas, The City needs to replace its current 2000 truck mounted rodder unit;
Whereas, Jack Doheny Supplies, Inc. of Northville, MI has offered the City a used demonstration unit at $47,500.00 below the price of a new unit:
Whereas, Given the sporadic availability of used demonstration units for sale, it is not possible to get competitive bids; and
Whereas, Jack Doheny Supplies, Inc. received Human Rights approval on March 29, 2011
RESOLVED, That City Council approve the issuance of a purchase order to Jack Doheny Supplies, Inc. for the purchase of one 2008 Ford F-550 truck chassis with a Sewer Equipment Company of America model 877 rodder unit mounted on it in the amount of $87,500.00 from fiscal year 2011 Sewage Disposal System O&M budgeted funds;
RESOLVED, That the vehicle being replaced (no. 2616) be sold at the next City vehicle auction; and
RESOLVED, That the City Administrator is authorized to take the necessary actions to implement this resolution.