SR 08-23-2016 3A
Ci ty Council
Report
City Council Meeting : August 23, 2016
Agenda Item: 3.A
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To: Mayor and City Council
From: Susan Cline, Director , Public Works, Street & Fleet Services
Subject: Purchase of One Compressed Natural Gas Hydrostatic Drive High Pressure
Sewer Jetter and Vacuum Vehicle
Recommended Action
Staff recommends that the Ci ty Council authorize the Purchasing Services Manager to
issue a purchase order with Municipal Maintenance Equipment, Inc., a California -based
company, for the purchase and delivery of one Compressed Natural Gas Hydrostatic
Drive High Pressure Sewer Jetter and Vacuum Vehicle, pursuant to Section
2.24.080(b), “Exception to C ompetitive B idding ”, of the Santa Monica Municipal Code, in
an amount not to exceed $457,297.
Executive Summary
The City Water Resources Division uses a special vehicle to clean and vacuu m the
sewer system in order to maintain water quality and distribution. This purchase would
replace one Compressed Natural Gas (CNG) Hydrostatic Drive High Pressure Sewer
Jetter and Vacuum Vehicle in the Water Resource Division, used for cleaning and
vacuu ming of the sewer system and pumping and cleaning key urban runoff water
treatment devices, that has reached the end of its useful life through the Vehicle
Replacement Program. Staff recommends purchasing this vehicle from Municipal
Maintenance Equipment, Inc. based on the validity of the competitive contract pricing
that the National Joint Powers Alliance (NJPA) awarded to Municipal Maintenance
Equipment, Inc. in an amount not to exceed $457,297.
Background
In January 2015, three bids were received for t he purchase of a Hydrostatic Drive High
Pressure Sewer Jetter Vacuum Vehicle for the Water Resources Division. In May 2015 ,
per Attachment A , Council approved the recommendation from staff to reject all bids as
non -responsive and rebid due to the fact that no ne of the vendor s met the bid
specifications . All three bidders took exceptions to the vehicle as it was specified, which
resulted in a lower usable debris storage tank capacity and a less powerful positive
displacement (air) blower.
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The National Joint Powers Alliance (NJPA) is a Minnesota -based municipal government
contracting agency. It works with government agencies to develop specifications, and
conducts competitive bids. As a member, the City is able to participate in NJPA
contracts. CNG Hydrosta tic Drive High Pressure Sewer Jetter Vacuum Vehicle Contract
#022014 -AMI awarded to Vac -Con, Inc., for which MME is the dealer for our region.
Discussion
The City replaces vehicles that have reached the end of their cost -effective useful life
through the Vehicle Replacement Program. The existing vehicle has a cost -effective
useful life span of 10 years, was purchased in 2002, and is 14 years old. The vehicle
would be used to perform routine cleaning of the sanitary sewer system, including the
jetting and c learing of blockages in the sewer system, responding to sanitary sewer
overflows, and to vacuum and capture raw sewage that may make its way to surface
streets, the storm drain system, and the Santa Monica Bay. This vehicle would also be
used on a daily b asis (five times per week plus stand -by) to pump and clean key urban
runoff water treatment devices connected to the storm drain system throughout the City
that remove and capture trash, thus preventing pollution from entering the Bay. This is a
critical v ehicle which is utilized in emergency response situations that require cleaning
and vacuuming water and debris in the public -right -of -way during rain events that may
cause flooding. This vehicle also provides emergency support for the Fire Department ,
for excavation in case of flooding, and in case of cave -in and/or earthquake, when
required.
Example of CNG Sewer Jetter Vacuum Vehicle
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Vendor Selection
Section 2.24.080(b) of the Santa Monica Municipal Code, Exception to Competitive
Bidding, allows the Ci ty to utilize a competitive bidding process that has already been
completed by Federal, State, County, City or special district government agencies, to
purchase the same supplies or equipment that the other entity has already purchased
under an existing bi d. Staff recommends utilizing this process in this case in order to
obtain the most competitive pricing, expedite the vehicle purchase, and ensure that
vehicle specifications match those that have already been specifically developed for,
and utilized by, w astewater management agencies.
The National Joint Powers Alliance (NJPA) is a Minnesota -based municipal national
contracting agency. As a National Joint Power, their laws enable members (like the City
of Santa Monica) to legally purchase through their awa rded contracts. NJPA is also one
of nine Minnesota Service cooperatives. They offer purchasing solutions that are
leveraged nationally so that members such as the City can benefit from a one off
purchase, like the Vactor Sewer Jetter truck. Many local go vernment agencies take
advantage of the pricing offered under NJPA for these reasons. Using NJPA’s bid
allows the City to obtain the most competitive price as a result of discounts afforded by
vendors that have established contract pricing while expediting the purchase .
Staff determined that the CNG Hydrostatic Drive High Pressure Sewer Jetter Vacuum
Vehicle is available through the NJPA Vehicle Contract; contract number 022014 -AMI,
awarded to Vac -Con, Inc. on April 1, 2014 , for which Municipal Maintenanc e Equipment,
Inc. (MME) is the dealer for the region . The contract is valid through March 18, 2018.
Fleet Management obtained copies of the original bidding documentation for the NJPA
award and reviewed them with the Finance Department. The documentatio n was
compared to purchasing documentation for an equivalent vehicle bid by staff in January
2015 to confirm that pricing was below market pricing. The validity of the competitive
contract pricing that NJPA awarded to MME was verified.
In addition to ve rifying contract pricing per NJPA award, staff also compared NJPA
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pricing to the original bids received in January 2015. The lowest bidder from the original
bids received in January 2015 did not meet specifications for three reasons, 1) they
provided a sma ller fuel tank capacity than specified at 60 DGE instead of 75 DGE, 2)
they provided a smaller debris tank, and 3) they provided a less powerful positive
displacement (air) blower than specified. The second lowest bidder was Municipal
Maintenance Equipment , Inc. at $492,213 (Attachment B ) including the exception which
resulted in a lower usable debris storage tank capacity and a less powerful positive
displacement (air) blower. The pricing provided in the NJPA contract for this purchase
with no exceptions i s $34,916 less than the bid submitted in January 2015 for the same
vehicle with the exceptions listed above . This substantiates the validity that NJPA’s
pricing is highly competitive.
In addition, staff obtained comparative pricing from the only other ve ndor selected by
NJPA, Vactor Manufacturing, for which Haaker Equipment Company is the dealer for
the region. Although its pricing is lower, $439,068, staff recommends MME as the best
bidder for the following reasons:
1) MME provides an auxiliary CNG engine. The auxiliary engine improves
performance by operating the equipment separately from the chassis engine
when staff are performing both jetting and vacuuming duties. The cost of this
engine is approximately $20,000 and is included in MME’s bid pricing.
2) MME provides a larger debris tank by 200 gallons
3) MME provides a more powerful PD blower.
4) MME provides a hydraulic hose reel outrigger, which stabilizes the hose reel and
allows for the ability to clean offset manholes in the public right of way.
5) MME provides a quicker delivery time.
6) MME provides a boom that rotates 270 degrees.
7) The unit that would be replaced by this purchase is equivalent to the unit that
was specified and would be purchased from MME. All accessories would be
interchangeable with the new unit which would save $8,000 to $10,000 in up -
fitting costs.
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Financial Impacts and Budget Actions
The purchase order to be awarded to Municipal Maintenance Equipment, Inc. is for an
amount not to exceed $457,297. Funds are available in the FY 2016 -17 Capital
Improvement Program budget in account C540167.589200.
Prepared By: Heidi Duran, Administrative Analyst
Approved
Forwarded to Council
Attachments:
A. Atta chment A - May 12, 2015 Staff Report
B. Attachment B - Bid Results
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