The URL can be used to link to this page

Home My WebLink About03.c. Authorize the Procurement of two collection system specialty vehicles totaling $900,000 under the vehicle replacement program, District Project 8517Page 1 of 6 Item 3.c. DCENTRALSAN MEETING DATE: SEPTEMBER 11, 2023 BOARD OF DIRECTORS POSITION PAPER DRAFT SUBJECT: REVIEW DRAFT POSITION PAPER TO AUTHORIZE THE PROCUREMENT OF TWO COLLECTION SYSTEM SPECIALTY VEHICLES TOTALING $900,000 UNDER THE VEHICLE REPLACEMENT PROGRAM, DISTRICT PROJECT 8517 SUBMITTED BY: INITIATING DEPARTMENT: RITA CHENG, REGULATORY COMPLIANCE ENGINEERING AND TECHNICAL SERVICES - SENIOR ENGINEER ERC-REGULATORY COMPLIANCE REVIEWED BY: LORI SCHECTEL, ENVIRONMENTALAND REGULATORY COMPLIANCE DIVISION MANAGER GREG NORBY, DEPUTY GENERAL MANAGER - OPERATIONS ROGER S. BAILEY, GENERAL MANAGER ISSUE Due to the long lead times to procure a specialty vehicle, which can take up to two years, staff recommends replacing two critical vehicles that have reached the end of their useful life. The two vehicles recommended for purchase at this time are expected to be delivered in FY 2024-25 and be charged against the budget in that year. Board authorization is requested for this advanced purchase. BACKGROUND The two collection system specialty vehicles recommended for replacement include a rodding truck and a sewer pipeline repair truck, also known as a warwagon. Both have reached the end of their useful life and are essential for the Collection System Operations Division (CSOD). A rodding truck is a custom medium -duty vehicle that uses a rod with blades that mechanically remove roots in sewer pipelines. A warwagon is a heavy-duty vehicle equipped with the necessary tools for sewer pipeline repairs and is used to respond to sanitary sewer spills. The estimated costs for a new internal combustion engine (I CE) rodding truck and a new I CE warwagon are approximately $600,000 and $300,000, respectively. Both vehicles have potential electric options that would require major customization on ZEV chassis bodies, but such applications have not been proven within the wastewater utilities. September 11, 2023 EOPS Regular Committee Meeting Agenda Packet - Page 23 of 39 Page 2 of 6 The Advanced Clean Fleets (ACF) Regulation, approved by the California Air Resources Board in April 2023, aims to accelerate the adoption of medium- and heavy-duty zero -emission vehicles in public and private fleets across the state. As a special district within California, Central San falls under the purview of the ACF Regulation. This regulation requires state and local government agencies, including special districts, to ensure that 50% of their medium- and heavy-duty vehicle purchases are zero -emission vehicles (ZEVs) starting on January 1, 2024, and 100% of medium and heavy-duty vehicle purchases are ZEVs beginning on January 1, 2027. Recognizing the short timelines set by the ACF Regulation, Regulatory Compliance staff, the Resource Recovery Program Manager retained the services of a fleet electrification consultant through competitive procurement and began developing a District -wide Fleet Electrification Strategic Plan months prior to the adoption of the ACF Regulation. The development of the Fleet Electrification Strategic Plan is currently underway. The current prevailing strategy proposes a deferment of electric vehicle (EV) purchases until 2025 or beyond, which allows adequate time for the installation of electric vehicle charging stations (EVCSs). This strategy will ensure full regulatory compliance while effectively transitioning Central San's fleet to ZEVs. The installation of EVCSs could take 1-2 years, depending on the complexity of needed electrical upgrades and coordination with PG&E. Given this timeframe, Central San would encounter challenges in meeting the initial 50% ZEV purchase requirement starting in 2024, especially without any EVCSs in place. A more practical approach for Central San involves prioritizing the installation of EVCSs prior to the procurement of EVs, ensuring reliable ongoing operation and emergency response. Purchasing medium and heavy-duty EVs before installation of EVCSs is not recommended due to concerns relating to operational reliability and emergency response needs. Notably, heavy-duty vehicles require high -power Level 3 chargers that are not accessible to the public. ALTERNATIVES/CONSIDERATIONS The Board could reject staff's recommendation to authorize the purchase of two existing CSO specialty vehicles, but this is not recommended as the vehicles are difficult to obtain, and there is uncertainty regarding whether these vehicles will be exempt from the newly adopted ACF Regulation. FINANCIAL IMPACTS Purchase of the two vehicles was not anticipated in the budget for FY 2023-24 per the list of expected vehicle purchases for this year. Delivery of the vehicles is anticipated in FY 2024-25 or possibly later and would be charged against the Vehicle Replacement Project budget in the year of delivery. Accordingly, Board approval of a commitment of funds affecting a future year budget is requested. To the extent that early delivery of the vehicles were to occur, that could require a budget modification by the Board to the extent expenditures for that year exceed authorized funds (current year budget and carryforward). The budget for the Vehicle Replacement Program is listed on page 283 of the current FY2023-24 Budget and has $1,000,000 per year projected for the next two fiscal years. The annual Program funding level will be revisited and updated next year based on the final recommendation from the Fleet Electrification Strategic Plan. COMMITTEE RECOMMENDATION The Engineering and Operations Committee reviewed this item at its September 11, 2023 meeting and recommended September 11, 2023 EOPS Regular Committee Meeting Agenda Packet - Page 24 of 39 Page 3 of 6 RECOMMENDED BOARD ACTION Authorize the procurement of the following specialty vehicles, which are anticipated to be charged to the Vehicle Replacement Project (8517) in the year of delivery: 1. Sewer rodding truck in an amount not to exceed $600,000; and 2. Sewer repair truck, warwagon in an amount not to exceed $300,000. Strategic Plan re -In GOAL TWO: Environmental Stewardship Strategy 1 - Achieve compliance in all regulations GOAL SIX: Infrastructure Reliability Strategy 1 - Manage assets optimally, Strategy 2 - Execute long-term capital renewal and replacement program ATTACHMENTS: 1. Presentation September 11, 2023 EOPS Regular Committee Meeting Agenda Packet - Page 25 of 39 Page 4 of 6 September 11, 2023 AUTHORIZE THE PROCUREMENT OF TWO COLLECTION SYSTEM SPECIALTY VEHICLES TOTALING $900,000 UNDER THE VEHICLE REPLACEMENT PROGRAM, DISTRICT PROJECT 8517 Engineering and Operations Committee Meeting Rita Cheng, P.E. Senior Engineer Proposed Vehicle Replacement Due to long lead times to procure specialty vehicles, staff is recommending replacement of a rodding truck and a sewer pipeline repair truck, also known as a warwagon, for Collection System Operations (CSO). Both vehicles have reached the end of their useful life. Board authorization is requested for the recommended advanced purchase of both vehicles, which are expected to be delivered in FY2024-25 and be charged against the budget in that year. Rodding Truck (Estimated cost: $600k) Warwagon (Estimated cost: $300k) September 11, 2023 EOPS Regular Committee Meeting Agenda Packet - Page 26 of 39 Page 5 of 6 Vehicle Replacement Program' i Development of the Fleet Electrification Strategic Plan is currently underway. An update for the Real Estate, Environmental and Planning Committee is scheduled for October 2023. To ensure reliable operation and emergency response, Central San is prioritizing the installation of electrical vehicle charging stations (EVCSs) prior to the procurement of electric vehicles (EVs). Current prevailing strategy proposes a deferment of EV purchases until 2025 or beyond, which allows adequate time for the installation of EVCSs. Staff is proposing to replace the internal combustion engine (ICE) rodding truck and warwagon before the ACF Regulation goes into effect on January 1, 2024, due to uncertainty regarding whether these vehicles will be exempt from the newly adopted ACF Regulation. September 11, 2023 EOPS Regular Committee Meeting Agenda Packet - Page 27 of 39 Page 6 of 6 Position Paper's Request Authorize the procurement of two collection system specialty vehicles totaling $900,000, which are anticipated to be charged to the Vehicle Replacement Program, District Project 8517 in the year of delivery: Sewer rodding truck in an amount not to exceed $600,000; and Sewer repair truck (warwagon) in an amount not to exceed $300,000. September 11, 2023 EOPS Regular Committee Meeting Agenda Packet - Page 28 of 39 3