Title
Resolution to Appropriate Funds and Approve the Purchase of a Combination Sewer Truck from Jack Doheny Supplies, Inc. ($398,806.00) (8 Votes Required)
Memorandum
The attached resolution authorizes the purchase of a Vactor model 2115-PLUS combination sewer unit mounted on a 2012 Kenworth model T400 chassis from Jack Doheny Supplies, Inc. for a total purchase price of $398,806.00. A combination sewer truck is a piece of equipment that combines high pressure jetted water and vacuum removal to clean sewers. Additionally, the vacuum portion of the vehicle is used to hydro-excavate, which means to use vacuum along with pressurized water to remove soil. Hydro excavation is the safest way to dig around underground cables, curb boxes, and pipes because it removes the soil without damaging the underground structures. Combination sewer trucks are routinely used in the maintenance of sanitary and storm water systems. Additionally, the vacuum portion of the vehicle is frequently used to control water in an excavation during the repair of a water main break.
Currently, we have three Vactor brand combination sewer trucks. This truck will replace a 2004 unit with 8060 hours of use. Over the last two years, this unit has been taken to Fleet Service for maintenance and repairs 53 times of which 58% have been for breakdowns. These breakdowns have taken the unit out of service from as little as four hours to as long as two weeks.
The loss of production caused by these frequently breakdowns makes it impossible to stay current on the scheduled preventive maintenance program of our underground utilities. 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.
The City of Rochester Hills, acting as the Principal Procurement Agency along with the City of Ann Arbor, City of Troy and the National Intergovernmental Purchasing Alliance issued a Request for Proposal for the purchase of combination sewer truck(s), parts, and related services. The proposal was developed with the intent of procuring a sewer truck meeting the City's specifications, a contract that would offer a comprehensive list of parts and related services for sewer trucks, a nationwide master agreement for entities across the country to purchase from, and aggregated volume to generate best value offers from combination sewer truck vendors.
The proposal process consisted of two stages; proposal review and site visits/product demonstrations. Representatives of the City of Ann Arbor, City of Rochester Hills, City of Troy, and staff of the National Intergovernmental Purchasing Alliance evaluated these proposals. By collaborating with a national cooperative the City received the most competitive pricing available in the market. As part of this contract, the City was able to secure pricing that includes discounted parts pricing for multiple years, and a complete selection of all available component, chassis, and engine offerings for the vehicle to ensure this cooperative contract would be beneficial, and provide a solution to meet agencies needs across the nation.
Of the four responses that were received, only the top two were selected for the second stage of review and were asked to provide presentations, facility tours, and demonstrations of their equipment.
Scoring for all phases of the proposal process was conducted and Jack Doheny Supplies, Inc. was selected with unanimous support of all participants.
All of the City of Ann Arbors combination sewer trucks are Vactor brand with interchangeable parts, which allows a substantial reduction in parts inventory.
Jack Doheny Supplies, Inc. is the sole representative of the Vactor brand in the State of Michigan and is the largest dealer of sewer equipment in the United States.
The previous combination sewer truck was not funded via the Fleet Equipment and Replacement fund and the funds for the purchase were budgeted in the previous fiscal year Field Operations operation and maintenance budget. The purchase was delayed due to the lengthy bidding process; therefore, the funds remained unspent in the previous fiscal year and the funding was returned to the Sanitary Sewer Fund Balance. Adequate funds for the purchase exist in the Sanitary Sewer fund balance. The new truck will now become a part of the Fleet Equipment and Replacement fund and we will begin collecting depreciation costs annually as associated with the Fleet and Equipment 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 Administrator
Approved by: Roger W. Fraser, City Administrator
Body
Whereas, The City needs to replace its current 2004 Combination Sewer Truck;
Whereas, Jack Doheny Supplies, Inc. of Northville, MI was awarded the cooperative bid issued by the City of Ann Arbor, City of Troy, City of Rochester Hills, and National Intergovernmental Purchasing Alliance; and
Whereas, Jack Doheny Supplies, Inc. received Human Rights approval on March 29, 2011.
RESOLVED, That City Council appropriate $398,806.00 in funding from the Sanitary Sewer Fund Balance;
RESOLVED, That City Council approve the issuance of a purchase order to Jack Doheny Supplies, Inc. for the purchase of one 2012 Kenworth T400 truck chassis with a Vactor model 2115-PLUS unit mounted on it in the amount of $398,806.00 from the Sanitary Sewer fund with funds to be available without regard to fiscal year;
RESOLVED, That the vehicles being replaced (no. 2617) be sold at the next City vehicle auction or traded in, whichever is the most advantageous; and
RESOLVED, That the City Administrator is authorized to take the necessary actions to implement this resolution.