CITY COMMISSION AGENDA MEMO May 30, Randy D. DeWitt, Assistant Director of Public Works for Water and Wastewater

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1 CITY COMMISSION AGENDA MEMO May 30, 2018 FROM: Randy D. DeWitt, Assistant Director of Public Works for Water and Wastewater MEETING: June 5, 2018 SUBJECT: PRESENTER: Sole Source Purchase - Combination Jet/Vacuum Sewer Maintenance Truck, Replace Sewer Maintenance Unit #155 (CIP #WW056E) Randy D. DeWitt, Assistant Director of Public Works for Water and Wastewater BACKGROUND In 2017, the City Commission approved the 2018 Annual Budget. As part of the budget, the Commission reviewed and approved the 2018 Capital Improvement Program, which included the purchase of a new Combination Jet/Vacuum Sewer Maintenance Truck (CIP #WW056E). The new truck will replace an existing 2005 Vactor 2100 Series truck (Unit #155) with a Sterling chassis and CAT diesel engine. This vehicle/equipment replacement was originally programmed in the 2015 CIP, with the equipment being on a 10-year replacement schedule; however, due to the acceptable condition of the equipment, City staff recommended delaying the purchase. The CIP description and budget was developed to provide the option for the City to keep the existing unit as a backup piece of equipment and for use by the Stormwater Maintenance crews that work within the Street Division. This piece of equipment primarily consists of a 12 cubic yard debris body, 1,500-gallon water tank, diesel powered auxiliary engine, high-pressure pumping system with frontend hose reel assembly with 1,000 feet of hose and a dual-fan vacuum system with a hydraulic boom/vacuum hose. The Utilities Division primarily uses the Combination Jet/Vacuum Sewer Maintenance Truck as a part of daily maintenance operations within Sewer Maintenance for the extraction of debris from the sanitary sewer system to prevent it from flowing downstream to lifts stations and the Wastewater Treatment Plant and to relieve sewer backups. Other primary functions performed by the equipment includes extractions of grease and other debris from sanitary sewer lift station wet wells, and for hydro-

2 excavation for locating underground utilities that require precise extraction that cannot be safely completed by a backhoe or compact excavator. Secondary functions performed by this piece of equipment includes hauling grease, grit and other debris from the City Biosolids Farm to disposal facilities, providing mutual aide to other municipalities or sewer systems (when requested), providing assistance to other City Departments or Divisions by extracting debris at the Water and Wastewater Treatment Plants from various basins and pits. In addition, this equipment helps extract debris from storm sewers when requested by the Engineering Division and the Street Maintenance Division. DISCUSSION Sole Source Purchase In lieu of completing a public bidding process for the purchase of the Combination Jet/Vacuum Sewer Maintenance Truck, as would be typically required by the City of Manhattan s purchasing policy, City staff is requesting to complete a sole source purchase for this piece of equipment through the City s membership with the National Joint Powers Alliance (NJPA). By utilizing this purchasing process, the City will be able to obtain a piece of equipment that meets maintenance needs of the Sewer Maintenance Division, as well as performance expectations. This type of equipment is very specialized with the quality of many features varying greatly between manufacturers. Some features are proprietary and/or unavailable from all manufacturers. When bidding similar specialized equipment in the past, City staff has been required to reject bids due to conflicts between published specifications and purported equal specifications submitted by low bidders. Completing detailed reviews of the bids to determine if the lower bids met minimum specifications complicated and awarding a purchase to the lowest bidder, instead lowest responsive bidder, results in the purchase of equipment that does not meet the needs of the Sewer Maintenance Divisions or performance expectations. For this purchase, City staff developed a minimum list of desired specifications for the equipment. The base equipment and features/options that were selected were determined based on the daily needs of Sewer Maintenance Division and the desire to accomplish daily tasks with increased efficiency and effectiveness. The selected features/options will also allow additional safety and flexibility in how the daily tasks are completed. City staff solicited a single quote from Key Equipment & Supply Company (Key), of Kansas City, Kansas. Key is the local authorized dealer the for Vactor brand of sewer equipment. The quote includes a substantial municipal discount through the NJPA membership. The discount results in a final price that is approximately 10 percent lower than the cost of a direct purchase through Key or through the standard public bidding process.

3 City staff desires to complete a sole source purchase from Key/Vactor primarily due the performance of the existing piece of equipment being substantially beyond expectations with very few issues. The Sewer Maintenance staff has been very satisfied with the Vactor equipment, as it is the industry leader for this type of equipment. Also, Vactor trucks traditionally have a much higher trade-in/resale value. To further justify the desire to sole source the purchase, City staff has been in contact with two (2) other municipalities that have recently completed public bidding for the procurement of new Combination Jet/Vacuum Sewer Maintenance Trucks. The City of Topeka purchased two (2) new trucks that were awarded based on the lowest bid. Topeka typically replaces their trucks every six (6) years; however, they opted to trade the trucks in after only three (3) years for Vactor trucks due to performance issues the higher trade-in values provided for Vactor trucks. The City of Hutchinson also solicited public bids for the purchase of a new truck on two (2) occasions in recent years. On both occasions, the purchase was awarded to Vactor, in lieu of the lowest bidder, even though the lowest bidder was substantially lower each time. National Joint Powers Alliance NJPA is a public corporation serving as a municipal contracting agency for government and education agencies. While the NJPA does not complete a true public bidding process, similar to the City s policy or the State of Kansas vehicle bidding process, to determine the lowest single purchasing option for its members, it leverages the aggregation of volume purchasing opportunities to achieve the lowest possible purchasing price for its members. Specifically in regards to municipal sewer maintenance equipment, the NJPA also has pricing of Combination Jet/Vacuum Sewer Maintenance Trucks from four (4) other leading manufacturers, including HiVac/Aquatech, Sewer Equipment Company, Vac-Con and Vacall. NJPA creates national cooperative contract purchasing solutions on behalf of its member agencies to provide both time and money savings by consolidating the efforts of numerous individually prepared solicitations to one national, cooperatively shared process. The NJPA provides members with procurement of choice equipment, products and services that have been competitively awarded under contracts featuring the highest quality solutions from industry-leading and nationally recognized vendors. NJPA issues an annual Request for Proposal (RFP) from manufacturers of equipment commonly utilized by the membership. All NJPA contracts have been competitively solicited nationally, reviewed, evaluated by the NJPA. Each RFP requests that bids are provided by a manufacturer or vendor whom can sell and service participating member agencies in all 50 states with the full understanding that these contracts will be under consideration for use by government, education and non-profit member agencies throughout the United States.

4 Disposal/Retention of Existing Equipment As previously stated, the CIP description budget was developed to allow the option for the City to keep the existing unit as a backup piece of equipment, or for use by the Stormwater Maintenance crews that work within the Street Division. The equipment may also be disposed of through the City s policy for the disposal of assets, in this case by public auction. City staff has obtained an approximate valuation from Key for the buyback of the existing equipment, in the amount of $110,000. This was primarily obtained to assess the potential value of the equipment if it were to be traded in or sold on the open market. City staff has also conducted research on the value of similar Vactor 2100 Series Combination Jet/Vacuum Sewer Maintenance Trucks that were sold at auction or by used equipment dealers. Staff has found that equipment of similar age, condition, equipment hours, and mileage generally have a wide range of resale value. The range can be as low as $80,000 and as high as $150,000. Lastly, City staff is currently working with HDR Engineering on a Sanitary Sewer Maintenance Program Assessment, to be completed in late This assessment is evaluating the program and making recommendations and modifications (strategies, equipment, staffing, etc.) to increase productivity, effectiveness and efficiently of the program. While it is not anticipated that the program will specifically suggest the City retain the existing Combination Jet/Vacuum Sewer Maintenance Truck for the needs of the Sewer Maintenance Division, the assessment will be recommending to reduce the amount of time that is spent utilizing the Division s specialized equipment to assist with other Divisions and Departments. Based on this information, and because the purchase price of the replacement equipment is within the budgeted CIP amount, it is the recommendation of City staff to retain the existing piece of equipment as a backup for Sewer Maintenance Division, transfer the equipment to the Stormwater and Street Maintenance Divisions, or defer the decision of disposal until a later date and gather more information. FINANCING The 2018 Wastewater Fund budget included funding for the purchase of the new Combination Jet/Vacuum Truck (CIP #WW056E). City staff estimated the cost for purchasing the new equipment to be approximately $400,000. The total cost for purchase the new equipment from Key Equipment & Supply Company, of Kansas City, Kansas, is $396,667, which is within the budgeted amount. The purchase is to be paid for from the Wastewater Fund. The purchase will not utilize financing, nor a lease-purchase agreement.

5 ALTERNATIVES It appears the Commission has the following alternatives concerning the issue at hand. The Commission may: 1. Authorize the sole source purchase of a New Combination Jet/Vacuum Truck (CIP #WW056E) to Key Equipment & Supply Company, of Kansas City, Kansas in the amount of $396, Do not authorize the purchase of the New Combination Jet/Vacuum Truck (CIP #WW056E) to Key Equipment & Supply Company, of Kansas City, Kansas. 3. Modify to meet the needs of the Commission. 4. Table the request. RECOMMENDATION City Administration recommends the City Commission authorize the sole source purchase of a New Combination Jet/Vacuum Truck (CIP #WW056E) to Key Equipment & Supply Company, of Kansas City, Kansas, in the amount of $396,667. POSSIBLE MOTION Authorize the sole source purchase of a New Combination Jet/Vacuum Truck (CIP #WW056E) for the Sewer Maintenance Division, to replace Unit #155, from Key Equipment & Supply Company, of Kansas City, Kansas, in the amount of $396,667, to be paid from the Wastewater Fund RDD/KB Enclosure: 1. Quote

6 Presents a Proposal Summary of the 2100i * Sample Photo Combination Single Engine Dual Stage Sewer Cleaner with Hydrostatic Driven Vacuum System Mounted on a Heavy Duty Truck Chassis for Quote Number: of 7 Steve Williams

7 Order Qty Part Number Description NJPA Price SE2-PLUS 2100i Single Engine Fan, Dual Stage, 12 yrd Debris, $230, Combo P Additional Water, 1500 Gal Total (12 yrd) $3, PSTD Vacuum, Single Engine - Dual Stage Fan $ P 80 GPM/2000 PSI $ PSTD Under Engine Toolbox $ PSTD Aluminum Fenders $ PSTD Mud Flaps $ PSTD Electric/Hydraulic Four Way Boom $ PSTD Color Coded Sealed Electrical System $ PSTD Remote Pendant Control With 35' Cord $ PASTD Intuitouch Electronic Package $ PSTD Double Acting Hoist Cylinder $ PSTD Handgun Assembly w/35' x 1/2" Hose w/quick $0.00 Disconnects 1 026PSTD Ex-Ten Steel Cylindrical Debris Tank $ PSTD Flexible Hose Guide $ PSTD (3) Nozzles with Carbide Inserts w/rack $ PSTD Suction Tube Storage - 4 Pipe $ PSTD 1" Nozzle Pipe $ PSTD 10' Leader Hose $ PSTD Flat Rear Door w/hydraulic Locks $ PSTD Dual Stainless Steel Float Shut Off System $ PSTD Debris Body Vacuum Relief System $ PSTD Debris Deflector Plate $ PSTD 60" Dump Height $ PSTD Additional Water Tank Sight Gauge $ PSTD Liquid Float Level Indicator $ PSTD Rodder System Accumulator - Jack Hammer on/off $0.00 Control w/ manual valve PSTD 3" Water Pump $ PSTD Performance Package $ PSTD 1" Water Relief Valve $ PSTD Midship Handgun Coupling $ PSTD Chassis Engine Cooling Package $ PSTD Side Mounted Water Pump $ PSTD Hose Reel Manual Hyd Extend/Retract $ PSTD Hose Reel Chain Cover $ PBSTD Hydraulic Extending 15", Rotating Hose Reel, 1" x 800' $0.00 Capacity PSTD Hydraulic Tank Shutoff Valves $ PSTD Tachometer/Chassis Engine w/hourmeter $ PSTD Water Pump Hour Meter $0.00 Quote Number: of 7

8 1 7004PSTD PTO Hour Meter $ PSTD Circuit Breakers $ PSTD LED Lights, Clearance, Back-up, Stop, Tail & Turn $ PSTD Tow Hooks, Front $ PSTD Tow Hooks, Rear $ PSTD Electronic Back-Up Alarm $ S390ASTD 8" Vacuum Pipe Package $ S560STD Emergency Flare Kit $ S590STD Fire Extinguisher 5 Lbs. $ P Debris Body Washout $1, PA 6" Rear Door Knife Valve w/camloc w/port & Fixed $1, Basket Screen, 6:00 position PA Centrifugal Separators (Cyclones), 304 Stainless Steel $6, P Folding Pipe Rack, Curbside $ PA Folding Pipe Rack, Streetside $ P Rear Door Splash Shield $1, PSTD Low Water Indicator On Screen w/alarm and Water $ Pump Flow Indicator P Air Purge $1, PSTD 3" Y-Strainer at Passenger Side Fill, in lieu of 2", with $ ' Fill Hose PSTD Digital Water Pressure Gauge $ P 180 deg. 15 Ft. Hydraulic Extendable x 10 Ft. $19, Telescoping Boom PSTD Front Joystick Boom Control $ PSTD Boom Hose Storage, Post for 10 x 15 RDB Boom $ PB Bellypack Wireless Controls with hose reel controls, 2- $2, way communications, and LCD Display PB Rotatable Boom Inlet Hose, 10 x 15 RDB Boom $ PB Cold Weather Recirculator, PTO Driven, 25 GPM $1, PC 800' x 1" Piranha Sewer Hose 2500 PSI in lieu of STD $1, PB Hose Wind Guide (Dual Roller), Auto, Indexing with $4, Pinch Roller PDSTD Digital Hose Footage Counter $ P Rodder Pump Drain Valves $ PB Rear Directional Control, Signal Master LED Arrow $1, Stick, 8 Lights PE Lighting Package, 6 Federal Signal Strobe Lights $2, P LED Mid-Ship Turn Signals $ P Worklights (2), LED, 10 x 15 RDB Boom $ PA Worklight, LED, Operators Station $ PC Worklight, LED, Curb Side $ PD Worklight, LED, Street Side $ PB Camera System, Front, Rear and Both Sides $1, PA Safety Cone Storage Rack - Post Style $ PB Long Handle Tool Storage $ PE Toolbox, Behind Cab - 16w 30h x 96d $2, PB Toolbox, Driver Side Chassis Frame, 24w x 24h x 24d $1, PA Toolbox, Passenger Side Chassis Frame, 30w x 18h x $1, d 1 P112STD Module Paint, DuPont Imron Elite - Sanded Primer Base $0.00 Quote Number: of 7

9 1 P124STD Vactor 2100i Body Decal, Standard $ LOGO-APPL. Vactor/Guzzler Logos - Applied $ B-30 Vactor Standard Manual and USB Version Dealer $0.00 Module Paint Match Cab - Yes Module Paint Color - White Cab Color - White 2018 Vactor 2100i: $295, Freightliner 114SD SBA 6x4, Tandem Axle, 370 HP, Auto, 66,000 GVWR, 2017 GHG: $98, Freight, Delivery, PDI, Training: $2, Total Price Delivered to the City of Manhattan: $396, Price valid for 30 Days from date of 5/7/2018 Quote Number: of 7

10 PROPOSAL DATE: 5/7/2018 QUOTE NUMBER: Price List Date: 1/1/2018 PO NUMBER: QTY: PAYMENT TERMS: Customer Initials: PROPOSAL NOTES: 1. Multiple unit orders will be identical to signed proposal. Changes or deviations to any unit of a multiple unit order will requires a new signed proposal. 2. Chassis specifications and data codes for customer supplied chassis must be submitted to and approved by Vactor Manufacturing prior to submittal of customer purchase order 3. All prices quoted are in US Dollars unless otherwise noted. SIGNED BY: Date: Quote Number: of 7

11 LIMITED WARRANTY Limited Warranty. Each machine manufactured by VACTOR/GUZZLER MANUFACTURING (or, "the Company") is warranted against defects in material and workmanship for a period of 12 months, provided the machine is used in a normal and reasonable manner and in accordance with all operating instructions. In addition, certain machines and components of certain machines have extended warranties as set forth below. If sold to an end user, the applicable warranty period commences from the date of delivery to the end user. If used for rental purposes, the applicable warranty period commences from the date the machine is first made available for rental by the Company or its representative. This limited warranty may be enforced by any subsequent transferee during the warranty period. This limited warranty is the sole and exclusive warranty given by the Company. STANDARD EXTENDED WARRANTIES (Total Warranty Duration) 2100 Series, HXX, Series and Jetters 10 years against water tank leakage due to corrosion. nonmettalic water tanks are covered for 5 yrs against any factory defect in material or workmanship Series and HXX only 5 years against leakage of debris tank, centrifugal compressor or housing due to rust-through Series and Jetters 2 years - VactorRodder Pump on all unit serial numbers starting with 13##V#####. Exclusive Remedy. Should any warranted product fail during the warranty period, the Company will cause to be repaired or replaced, as the Company may elect, any part or parts of such machine that the Company's examination discloses to be defective in material or factory workmanship. Repairs or replacements are to be made at the selling Vactor/Guzzler distributor's location or at other locations approved by the Company. In lieu of repair or replacement, the Company may elect, at its sole discretion, to refund the purchase price of any product deemed defective. The foregoing remedies shall be the sole and exclusive remedies of any party making a valid warranty claim. This Limited Warranty shall not apply to (and the Company shall not be responsible for): 1. Major components or trade accessories that have a separate warranty from their original manufacturer, such as, but not limited to, trucks, engines, hydraulic pumps and motors, tires and batteries. 2. Normal adjustments and maintenance services. 3. Normal wear parts such as, but not limited to, oils, fluids, vacuum hose, light bulbs, fuses, gaskets. 4. Failures resulting from the machine being operated in a manner or for a purpose not recommended by the Company. 5. Repairs, modifications or alterations without the express written consent of the Company, which in the Company's sole judgment, have adversely affected the machine's stability, operation or reliability as originally designed and manufactured. 6. Items subject to misuse, negligence, accident or improper maintenance. *NOTE* The use in the product of any part other than parts approved by the Company may invalidate this warranty. The Company reserves the right to determine, in its sole discretion, if the use of non-approved parts operates to invalidate the warranty. Nothing contained in this warranty shall make the Company liable for loss, injury, or damage of any kind to any person or entity resulting from any defect or failure in the machine. THIS WARRANTY SHALL BE IN LIEU OF ALL OTHER WARRANTIES, EXPRESS OR IMPLIED, INCLUDING WITHOUT LIMITATION, ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE, ALL OF WHICH ARE DISCLAIMED. This warranty is in lieu of all other obligations or liabilities, contractual and otherwise, on the part of the Company. For the avoidance of doubt, the Company shall not be liable for any indirect, special, incidental or consequential damages, including, but not limited to, loss of use or lost profits. The Company makes no representation that the machine has the capacity to perform any functions other than as contained in the Company's written literature, catalogs or specifications accompanying delivery of the machine. No person or affiliated company representative is authorized to alter the terms of this warranty, to give any other warranties or to assume any other liability on behalf of the Company in connection with the sale, servicing or repair of any machine manufactured by the Company. Any legal action based hereon must be commenced within eighteen (18) months of the event or facts giving rise to such action. Quote Number: of 7

12 The Company reserves the right to make design changes or improvements in its products without imposing any obligation upon itself to change or improve previously manufactured products. VACTOR/GUZZLER MANUFACTURING 1621 S. Illinois Street Streator, IL Quote Number: of 7