Title
MOTION TO APPROVE THE PURCHASE OF A SEWER EQUIPMENT COMPANY OF AMERICA MODEL 900-ECO COMBINATION SEWER CLEANER TRUCK FROM JET-VAC EQUIPMENT COMPANY, LLC., IN A TOTAL AMOUNT NOT TO EXCEED $604,057.56, UTILIZING PRICING ESTABLISHED BY THE SOURCEWELL CONTRACT NO. 101221, PURSUANT TO SECTION 35.18(C)(6) OF THE CITY'S CODE OF ORDINANCES.
Summary Explanation and Background
PROCUREMENT PROCESS TAKEN:
- Chapter 35 of the City’s Code of Ordinances is titled “PROCUREMENT PROCEDURES, PUBLIC FUNDS.”
- Section 35.18 of the City's Code of Ordinances is regarding "COMPETITIVE BIDDING OR COMPETITIVE PROPOSALS REQUIRED; EXCEPTIONS."
- Section 35.18(C) states, "Only the following situations are exempt from the competitive bid and competitive proposal requirements of this section:"
- Section 35.18 (C)(6) states that “Cooperative purchasing plans are exempt from this section.”
- Section 35.21 of the City's Code of Ordinances is titled "AWARD OF CONTRACT."
- Section 35.21(A) of the City's Code of Ordinances is titled "City Commission Approval."
- Section 35.21(A)(1) states, "An initial purchase of, or contract for, commodities or services, in excess of $100,000, shall require the approval of the City Commission, regardless of whether the competitive bidding or competitive proposal procedures were followed."
-The City is utilizing Sourcewell Contract #101221 to facilitate this purchase. Any option not listed in the price schedule may be added in accordance with contract guidelines. The contract also states "Sewer Equipment and/or our dealers will also supply chassis for our truck mounted models. These chassis are currently being quoted at cost on a case by case basis due to pricing influx in the market. We consider these items to be pass-thru items and are not subject to Sourcewell discounts or fee reporting."
SUMMARY EXPLANATION AND BACKGROUND:
1. The Utilities Department’s fleet of equipment & vehicles includes four jet-vacuum trucks that are owned by the City and operated by its Utilities Operations contractor Jacobs/OMI, and one jet-vacuum truck that is owned and operated by Jacobs/OMI. This Combination Sewer ECO-900 jet-vacuum truck is intended to replace Vehicle # 4007, a 2013 Kenworth Vac-Con truck that has been repaired numerous times in the last fiscal year and is beyond its useful life.
2. The Utilities Department Staff budgeted for the purchase of a heavy-duty jet-vacuum truck, that is designed for both heavy excavation work and sewer/storm drain cleaning, in the current fiscal year.
3. On November 1, 2023, City commission approved the purchase of a Sewer Equipment Company of America Model 900-ECO Combination Sewer Cleaner Truck from Jet-Vac Equipment Company, LLC using the Sourcewell Contract No. 101221. The Combination Sewer ECO-900 jet-vacuum truck that was purchased in 2023 is meeting the needs of the utility staff and is performing as expected.
Staff has also identified that the 2026 model of the Combination Sewer ECO-900 jet-vacuum truck will meet the requirements for the work they intend to perform. The Combination Sewer ECO-900 jet-vacuum truck being proposed is available from Sewer Equipment Company of America, via Sourcewell Contract No. 101221. The Sourcewell Contract was awarded on November 24, 2021 and has been extended through November 29, 2026. Sourcewell is a purchasing cooperative with the purpose of assisting member public agencies in meeting specific needs which are more efficiently delivered cooperatively than individually. Sourcewell is authorized to establish competitively awarded cooperative purchasing contracts on behalf of itself and its participating agencies (of which the City is a member). Sourcewell follows the competitive contracting law process to solicit, evaluate, and award cooperative purchasing contracts for goods and services.
Per the Sourcewell contract “discount for all new equipment is 3% off MSRP. The discount for parts and accessories is 5% of MSRP[…] These discounts are minimums, and our dealers may provide additional discounts.” However, the discounts do not apply to pass through costs or freight.
4. Sewer Equipment Company of America identified Jet-Vac Equipment Company, LLC. as our local distributor. The Utilities Department obtained a quote from Jet-Vac in the amount of $604,057.56. The quote includes a pass-thru cost of $135,367.05 for the chassis and engine combination, as allowed by the contract. There is also a $5,000 pass-through cost for freight. Additionally, the truck being purchased this year includes approximately $55,000 in standard options that were not included in 2023 and were deemed necessary for safety and improved use of the system. Additional standard options include:
|
Standard Options Not Purchased in 2023 |
Cost |
|
Debris Body Pump-Off System |
$16,592.00 |
|
Wireless Remote Pendant Control |
$5,758.00 |
|
Dual Variable Vacuum Control |
$3,168.00 |
|
Central Lubrication System |
$3,579.00 |
|
Enhanced Camera System |
$1,942.00 |
|
Expanded LED lighting packages |
$7,186.00 |
|
Additional toolboxes and storage configurations |
$7,897.00 |
|
Upgraded pump pulsation systems and accessories |
$8,800.00 |
|
Total |
$54,922.00 |
The quote includes a $14,340.94 discount, representing the required 3% discount off MSRP for the standard options (not including pass through cost for the chassis or freight), per the contract.
In addition the truck is already built and is ready to be delivered, saving the City the time it usually takes for these large trucks to be built.
5. Staff recommends City Commission’s approval of the purchase of a Sewer Equipment Company of America Model 900-ECO Combination Sewer Cleaner Truck from Jet-Vac Equipment Company, LLC., in a total amount not to exceed $604,057.56, utilizing pricing established by the Sourcewell Contract No. 101221, pursuant to Section 35.18(C)(6) of the City's Code of Ordinances.
Financial Impact
FINANCIAL IMPACT DETAIL:
a) Initial Cost: $604,057.56
b) Amount budgeted for this item in Account No: $573,918 in Account No. 471-535-6021-664214-0000-000-0000- (Truck)
c) Source of funding for difference, if not fully budgeted: Upon Commission approval, $30,140 will be moved from Account No. 471-535-6021-664400-0000-000-0000- (Other Equipment) to the Vehicle Account.
d) 5 year projection of the operational cost of the project
|
|
Current FY |
Year 2 |
Year 3 |
Year 4 |
Year 5 |
|
Revenues |
|
|
|
|
|
|
Expenditures |
$604,058 |
|
|
|
|
|
Net Cost |
$604,058 |
|
|
|
|
e) Detail of additional staff requirements: Not Applicable.
FEASIBILITY REVIEW:
A feasibility review is required for the award, renewal and/or expiration of all function sourcing contracts. This analysis is to determine the financial effectiveness of function sourcing services.
a) Was a Feasibility Review/Cost Analysis of Out-Sourcing vs. In-House Labor Conducted for this service? Not Applicable.
b) If Yes, what is the total cost or total savings of utilizing Out-Sourcing vs. In-House Labor for this service? Not Applicable.