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AGENDA REPORT
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| | | | | | | | DATE:
| June 15, 2021
| TO:
| Mayor and City Council
| FROM:
| Stefan T. Chatwin, City Manager
| | SUBJECT: | Resolution 2021-131 of the City Council of the City of Fairfield to Suspend Competitive Bidding and Authorizing the City Manager to Purchase a Replacement Water Tender Truck |
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| | | | | | | | | RECOMMENDED ACTION | | Adopt resolution. |
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| | | | | | | | | STATEMENT OF ISSUE | | Public Works Unit #325 is a Volvo water tender truck that has exceeded its useful life and is due for replacement. The replacement cost of this truck is included in the fiscal year (FY) 2020-2021 budget. Adopting this resolution authorizes the purchase of one replacement Kenworth water tender truck from NorCal Kenworth in the amount not-to-exceed $201,621. |
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| | | | | | | | | DISCUSSION | Public Works Unit #325 is a 1992 Volvo water tender truck that has exceeded its useful life. This specialized truck is used by public works crews for water and sewer maintenance, cleanup mitigation involving water main breaks, sanitary sewer overflows and flood debris, and is a backup water source for the Vac-Con combination sewer trucks when large amounts of water is needed to complete a cleaning process in the field. The expected life for this type of equipment is approximately 14 years. The repair costs for this water tender truck have exceeded 65% of the original purchase price and it is no longer reliable or cost effective to keep.
The City has the opportunity to purchase a new Kenworth water tender truck that will meet the needs of the department at a competitive price, utilizing the Sourcewell national pricing structure. Sourcewell has awarded a contract (#060920-KTC) to Kenworth for specialized trucks through a competitive process. NorCal Kenworth is the local dealer for Kenworth specialized trucks and has agreed to sell the City a Kenworth water tender truck at the Sourcewell price. Utilizing the Sourcewell pricing will save the City over $3,500 compared to local pricing, reduce dedicated staff hours, and shorten the delivery date by up to two months.
Staff recommends adopting the attached resolution to suspend competitive bidding and authorize the purchase of a replacement Kenworth water tender truck from NorCal Kenworth for $197,667. Additionally, because raw materials and manufacturing costs continue to rise due to the COVID-19 pandemic, the total cost also includes a 2% contingency of $3,954 for unexpected price increases, for a total not-to-exceed $201,621. The lead time to build water tender trucks can be in the 220 – 330-day time frame with post pandemic delays, which may result in this vehicle not being delivered until late FY 2022.
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| | | | | | | | | FINANCIAL IMPACT | | The total cost for the replacement of Unit #325 is for a not-to-exceed a total of $201,621 ($197,667 plus the 2% contingency of $3,954). The funds are budgeted in the Public Works Vehicle Replacement Fund (Fund 512, division and responsibility code 77001) for fiscal year 2020-2021. |
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| | | | | | | | | PUBLIC CONTACT/ADVISORY BODY RECOMMENDATION | N/A
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| | | | | | | | | ALTERNATIVE ACTION | | The council could reject this acquisition; however, this is not recommended due to the cost effectiveness of our overall fleet program and the increased cost of using an antiquated vehicle. |
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| | | | | | | | | STAFF CONTACT | David Renschler, Fleet Division Manager
(707) 428-7414
drenschler@fairfield.ca.gov
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| | | | | | | | | COORDINATED WITH | Finance Department
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| REVIEWERS: | | Reviewer | Action | Date | | Answerer | Approved | 6/1/2021 - 7:35 PM | | Kaushal, Paul | Approved | 6/1/2021 - 11:26 PM | | Alexander, Amber | Approved | 6/2/2021 - 4:02 PM | | Alexander, Amber | Approved | 6/2/2021 - 4:02 PM |
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