Title
Recommendation to Authorize the Purchase of One Pipehunter 3 Cubic Yard Combination Jet/Vacuum Sewer/Storm Cleaner for an Amount Not-to-Exceed $425,280 from Texas Underground Inc. Consistent with Revised Vehicle Replacement Policy; and
Adoption of Resolution Amending the Fiscal Years 2023-25 Biennial Budget for the Sewer Services Fund (501) Reducing Fiscal Year 2024-25 Appropriations by $419,783 and Increasing Fiscal Year 2023-24 Appropriations by $425,280 to Advance Purchase of a Combination Jet/Vacuum Sewer/Storm Cleaner. (Public Works 50141600)
Body
To: Honorable Mayor and Members of the City Council
From: Jennifer Ott, City Manager
EXECUTIVE SUMMARY
A combination jet/vacuum sewer/storm cleaner (Cleaner) is used to clear debris and blockages from underground pipelines. In June 2023, the City Council adopted Resolution No. 16059 adopting the Fiscal Years (FY) 2023-25 biennial budget, which included funding to replace one Cleaner in FY 2024-25 with funds from the Sewer Fund (Fund 501). Due to mechanical failures in the existing Cleaner, staff recommends advancing the replacement purchase to avoid costly repairs and ensure a reliable Cleaner during the wet season. Purchase of the Cleaner requires two actions from City Council: (1) adoption of a resolution amending the biennial budget and (2) authorization to purchase the Cleaner as the cost for the vehicle exceeds the City Manager’s purchasing authority. Staff recommends approving the attached resolution increasing budgeted appropriations in FY 2023-24 and decreasing budgeted appropriations in FY 2024-25 to replace one Cleaner and further recommends purchasing the Cleaner from Texas Underground Inc. Pricing is based on Texas Underground’s contract with Houston-Galveston Area Council (HGAC), a cooperative purchasing agency of which the City of Alameda (City) is a member, with an additional 4.8% discount because the Cleaner is a demonstration unit.
BACKGROUND
A Cleaner is used to clear debris and blockages from underground pipelines. This work is done both preventively and in response to emergency overflows and/or street flooding. The 3 cubic yard sized Cleaner has a smaller footprint than the two other combination jet/vacuums in the fleet, which allows City staff to access tight areas around town. With the upcoming rain season, it is crucial that the City has a reliable replacement Cleaner.
In June 2023, City Council adopted the FYs 2023-25 biennial budget, which included sufficient funds to replace one jet/vacuum sewer/storm cleaner in FY 2024-25 with funds from the Sewer Fund (Fund 501). Unfortunately, the existing truck mechanically failed sooner than anticipated and requires costly repairs, estimated at $30,000. This truck is already scheduled for replacement in FY 2024-25 and staff recommends advancing the replacement purchase from FY 2024-25 to FY 2023-24 rather than incurring the additional repair costs on the existing unit.
On November 5, 2019, staff brought to City Council a revised Administrative Policy and Procedure Number 48, Vehicle and Equipment Replacement Policy (Fleet Replacement Policy). In accordance with City Administrative Instruction Number 5 (“Purchasing Policy”), vehicles may be purchased by piggybacking on another agency’s purchase agreement or through cooperative purchasing. City Council must approve an award of vehicle purchases to a single vendor made through either piggybacking or cooperative purchasing in excess of a cumulative total of $75,000 in any given fiscal year.
DISCUSSION
Staff seeks approval to purchase one replacement Cleaner. This requires two actions from City Council: (1) adoption of a resolution amending the biennial budget, and (2) authorization to purchase the Cleaner as the cost for the vehicle exceeds the City Manager’s purchasing authority. Funding for the Cleaner replacement was approved for FY 2024-25 in Sewer Service Fund (Fund 501). The budget amendment will reduce the expenditure budget for FY 2024-25 by $419,783 and increase the FY 2023-24 by $425,280.
The Cleaner will be purchased from Texas Underground Inc. Exhibit 1 contains the quote with pricing based on their contract with Houston-Galveston Area Council (HGAC), a cooperative purchasing agency the City participates in, plus an additional 4.8% discount because the replacement Cleaner is a demonstration unit and therefore offered at discount. The Cleaner is subject to the same warranty as a non-demonstration unit and is available right away.
This type of heavy duty equipment is not available in electric models. Staff will continue to monitor the market.
ALTERNATIVES
• Adopt the budget resolution and authorize purchase of the replacement Cleaner.
• Do not authorize the early purchase of the replacement Cleaner. This would require the City to rent a unit at $3,800 per week while the existing unit is repaired. The repair may take up to 6-8 weeks with an estimated cost of $30,000. This alternative would negate the need for the relevant section of the proposed budget resolution.
FINANCIAL IMPACT
Replacement of an existing Cleaner was budgeted in FY 2024-25 in the Sewer Service Fund (Fund 501) but due to unforeseen mechanical issues it is prudent to replace the Cleaner in FY 2023-24. A budget resolution is required to increase the budget in FY 2023-24 and decrease the budget in FY 2024-25 to execute the purchase sooner.
The General Fund is not impacted as the proposed budget amendment re-allocates funding previously allocated to the Sewer Fund (Fund 501) by City Council.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
This action is consistent with the Alameda Municipal Code. This action is subject to the Levine Act.
ENVIRONMENTAL REVIEW
This action does not constitute a “project” as defined in California Environmental Quality Act (CEQA) Guidelines Section 15378 and therefore no further CEQA analysis is required.
CLIMATE IMPACTS
The Fleet Replacement Policy is consistent with the City’s recently adopted Climate Action and Resiliency Plan and emphasizes greenhouse gas emission reductions. The revised policy includes a focus on right-sizing the City fleet, the purchase of electric vehicles when feasible, and lowering the fleet’s greenhouse gas emissions through acquisition of low emission vehicles.
This replacement will be equipped with “Clean Diesel Technology” and will meet or exceed all current state and federal emission requirements. This “Clean Diesel” vehicle purchase confirm the City’s commitment to a green fleet. The new vehicle will cut carbon dioxide and diesel particulate matter in emissions by nearly 50% from the vehicles they replace.
RECOMMENDATION
Authorize the purchase of the Cleaner for a not-to-exceed $425,280 from Texas Underground Inc. consistent with the revised Vehicle Replacement Policy; and
Adopt a resolution amending the Fiscal Years 2023-25 Biennial Budget for the Sewer Services Fund (501) reducing Fiscal Year 2024-25 appropriations by $419,783 and increasing Fiscal Year 2023-24 appropriations by $425,280 to advance purchase of the Cleaner.
Respectfully submitted,
Erin Smith, Public Works Director
By,
Carlo Balboni, Fleet Supervisor
Financial Impact section reviewed,
Margaret O’Brien, Finance Director
Exhibits:
1. Texas Underground Inc. Quote