SR 03-26-2019 3C
City Council
Report
City Council Meeting: March 26, 2019
Agenda Item: 3.C
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To: Mayor and City Council
From: Susan Cline, Director, Public Works, Street & Fleet Services
Subject: Award Bid to National Auto Fleet Group for the Purchase of One Sewer Jetter
Vehicle
Recommended Action
Staff recommends that the City Council authorize the Procurement Manager to issue a
purchase order with National Auto Fleet Group, a California-based company, for the
purchase and delivery of one compressed natural gas high-pressure sewer jetter
vehicle for the Public Works Department. This recommended award is made as an
exception to the competitive bidding process pursuant to Section 2.24.080(b) and is for
a total amount not to exceed $334,545 .
Summary
The City’s Wastewater Division uses a special type of vehicle – a compressed natural
gas (CNG) high-pressure sewer jetter vehicle – to clean and maintain the City’s sewer
system. The current vehicle has reached the end of its useful life and replacement
through the Vehicle Replacement Program is needed. Staff recommends purchasing
this vehicle from National Auto Fleet Group in an amount not to exceed $334,545 using
the Exception to the Competitive Process, since this type of vehicle was already
competitively bid by Sourcewell and awarded to National Auto Fleet Group. Sourcewell
is a Minnesota-based municipal national contracting agency through which cities such
as Santa Monica can leverage to receive more competitive pricing. This purchase
meets the goals of the City’s Reduced-Emissions Fuels Policy by utilizing a vehicle
powered by 100% renewable CNG.
Discussion
The City replaces vehicles that have reached the end of their cost -effective useful life
through the Vehicle Replacement Program. The CNG high-pressure sewer jetter vehicle
would be used to perform routine cleaning and preventive maintenance of the sanitary
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sewer system, including the jetting and clearing of blockages in the sewer system . This
vehicle could also be used to pump and clean key urban runoff treatment devices
connected to the storm drain system throughout the City if one of the larger jetter-
vacuum vehicles is unavailable.
The existing vehicle was purchased in 2004 and has a cost-effective useful life span of
10 years. The vehicle data table below shows the vehicle unit number, model year, age,
original cost, total maintenance cost over the life of the vehicle, and the percentage of
the original cost that the maintenance cost has reached.
Replacing
Unit #
Model
Year Age Original Cost
Total
Maintenance
Cost
% Maint. Cost to
Original Cost
15887 2004 15 $186,968 $222,240 119%
Vendor Selection
Sourcewell, formerly 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 items and/or services
through their awarded contracts. Sourcewell is also one of nine Minnesota Service
cooperatives that offer purchasing solutions that are leveraged nationally so that
members such as the City can benefit from a one-off purchase like the sewer jetter
vehicle. Many local government agencies take advantage of the pricing offered under
Sourcewell for these reasons.
Staff compared the pricing in Sourcewell’s contract with National Auto Fleet Group to
quotes received from other vendors who also have active contracts through Sourcewell
for sewer jetter vehicles. The pricing provided in the Sourcewell contract for this
purchase is $3,806 less than the next closest bid and $15,350 less than the highest bid
received by Sourcewell.
Exception to Competitive Bidding
b. Item was already competitively bid by another governmental agency or is part of
cooperative purchasing with another agency, where item s or services are supplied
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at same price or better.
Staff recommends National Auto Fleet Group to furnish and deliver one CNG high-
pressure sewer jetter vehicle as an exception to competitive bidding per Muni cipal Code
2.24.080 (b). The sewer jetter vehicle was already competitively bid by Sourcewell and
awarded to National Auto Fleet Group under bid number 081716-NAF on November 15,
2016, which is valid until November 15, 2020, with an option to extend for one additional
one-year term. Staff recommends utilizing this process to obtain the most competitive
pricing, expedite vehicle purchases, and ensure that vehicle specifications match those
that have already been specifically developed for and utilized by wastewater
management agencies. Using National Auto Fleet Group’s bid allows the City to obtain
the most competitive price through a previously conducted cooperative pu rchasing
agency bid. If Santa Monica were to conduct its own formal bid, staff estimates it would
take approximately nine months to complete, utilizing significant staff time and
resources.
Staff reviewed the bid and are recommending this award based on the following:
1. National Auto Fleet Group provided the lowest cost of all three vehicle quotes.
2. They offered a lifetime warranty on a model 304L polished stainless steel water
tank. Of the other vendors, one offered a model 304 stainless steel tank with a
10-year warranty, and the other offered a polyethylene tank with a 10-year
warranty.
3. They provide the “Giant” 7600 series water pump, which is preferred by staff
based on their experience. This is not the standard pump supplied by the other
vendors providing quotes.
4. They provide a 1,600-gallon tank with a Gapvax Jet Flusher machine.
5. They included an upgrade to a power articulating front hose wheel as their
pricing. Other vendors do not include it as a standard, and including it would
increase their quote price.
6. They provide wireless pendant control for basic operations of equipment in the
quoted price, others did not.
7. The quote includes pre-delivery inspection for two City employees.
8. They are a local shop if repairs are needed and are the closest of the three
vendors providing Sourcewell quotes.
Financial Impacts and Budget Actions
Staff seeks authority to award a purchase order with National Auto Fleet Group for the
purchase of one CNG sewer jetter vehicle.
Purchase Order Request
Request Amount FY 2018-19 Budget
CIP Account #
Total Contract
Amount
$334,545 C7000010.689000 $334,545
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Prepared By: Ryan Kraemer, Senior Administrative Analyst
Approved
Forwarded to Council
Attachments:
A. National Auto Fleet Group Oaks Initiative Disclosure Form