HomeMy WebLinkAbout08. Authorize purchase of two rodding trucks to be delivered in next two fiscal years Page 1 of 3
Item 8.
CENTRAL SAN BOARD OF DIRECTORS
vie
. , Hill. , , . .
POSITION PAPER
MEETING DATE: SEPTEMBER 19, 2019
SUBJECT: AUTHORIZE THE GENERAL MANAGER TO PURCHASE TWO
ADDITIONAL RODDING TRUCKS TO BE DELIVERED IN FISCAL YEARS
2020-21 AND 2021-22 FUNDED FROM THE VEHICLE REPLACEMENT
PROGRAM, DISTRICT PROJECT 8517
SUBMITTED BY: INITIATING DEPARTMENT:
JASON DEGROOT, SENIOR ENGINEER OPERATIONS-COLLECTION SYSTEM DIV
MANAGER
REVIEWED BY: PAUL SEITZ, COLLECTION SYSTEM OPERATIONS DIVISION MANAGER
ANN SASAKI, DEPUTY GENERAL MANAGER
Roger S. Bailey
General Manager
ISSUE
Board authorization is required for the procurement of two additional rodding trucks to be funded and
delivered in Fiscal Years (FY) 2020-21 and 2021-22.
BACKGROUND
Central San has established an ongoing Vehicle Replacement Plan that takes into account expected life
cycles for each vehicle based on years of service, mileage, vehicle condition, and maintenance records.
The Collection System Operations Division has seven rodding trucks. Several of the rodding trucks are
near the end of their life cycle. The current Vehicle Replacement Plan includes replacing one rodding
truck each year for the next three fiscal years.A rodding truck takes approximately one year to fabricate
from the issuance of a purchase order. Due to the cost of a rodding truck, a formal bid must be solicited
each fiscal year after the funds are approved in the annual Capital I mprovement Budget (Cl B). One truck
is included in the approved FY 2019-20 Cl B under the Vehicle Replacement Program, District Project
8517. One additional rodding truck is recommended for replacement in FYs 2020-21 and 2021-22. Since
the three rodding trucks are identical, staff is proposing to issue a single purchase order for all three trucks
September 19, 2019 Regular Board Meeting Agenda Packet- Page 28 of 122
Page 2 of 3
with one formal bid. Delivery of the second truck would be no sooner than FY 2020-21 and delivery of the
third truck would be no sooner than FY 2021-22.
Two bids were received and opened on August 15, 2019. The bids were submitted by Owen Equipment
and Golden Gate Truck Center. The bids were $1,516,147 and $1,539,985, respectively, for all three
trucks. The Purchasing Division conducted a technical and commercial review of the bids and determined
that Owen Equipment is the lowest responsive and responsible bidder with a total bid amount of
$1,516,147 for the purchase of three rodding trucks. Therefore, the cost per rodding truck equates to
$505,382. The bid for the rodding truck purchased in FY 2018-19, also from Owen Equipment, was
$483,000 which equates to a 4.63% cost increase for the next three rodding trucks. I n addition, during the
manufacturing phase, one staff member will travel to Louisiana to inspect each truck. The cost for each
inspection is approximately$1,500 and is not included in the bid amount .
The funds for the two additional rodding trucks will be included in the FY 2020-21 and FY 2021-22 Cl B.
The Ten-Year Capital Improvement Plan (Cl P) includes $900,000 per year in the Vehicle Replacement
Program.
ALTERNATIVES/CONSIDERATIONS
Alternative No. 1: Continue with the plan to purchase one rodding truck in FY 2019-20 and purchase
additional trucks in subsequent years. This would require preparing formal requests for bids each year,
which duplicates work that could be handled with one procurement.
Alternative No. 2: Procure all three rodding trucks in FY 2019-20 rather than phasing them over three
fiscal years. This would require accelerating funding to FY 2019-20 rather than spreading costs over three
years, which could potentially impact the ability to fund other projects.
FINANCIAL IMPACTS
One of the three rodding trucks is in the approved FY 2019-20 CI B. The approval to issue a purchase
order to include the two additional rodding trucks would commit Central San to spending $505,382 of
future-year funds in FY 2020-21 and FY 2021-22. The Ten-Year C I P and the Ten-Year Financial Plan
include $900,000 per year in the Vehicle Replacement Program. There will be a cost savings by reducing
staff time needed to bid the rodding trucks only once instead of three separate bids over the next three
fiscal years. There will also be an additional cost saving from the vendors as they will only prepare one bid
instead of three.
COMMITTEE RECOMMENDATION
The Engineering and Operations Committee reviewed this item at the September 3, 2019 meeting and
recommended approval of the purchase.
RECOMMENDED BOARD ACTION
Authorize the General Manager to purchase two additional rodding trucks to be delivered in FYs 2020-21
and 2021-22 funded from the Vehicle Replacement Program, District Project 8517.
Strategic Plan Tie-In
GOAL THREE:Be a Fiscally Sound and Effective Water Sector Utility
Strategy 2- Manage costs
September 19, 2019 Regular Board Meeting Agenda Packet- Page 29 of 122
Page 3 of 3
GOAL FIVE:Maintain a Reliable Infrastructure
Strategy 2- Facilitate long-term capital renewal and replacement
September 19, 2019 Regular Board Meeting Agenda Packet- Page 30 of 122