REPORT TO THE CITY COUNCIL October 26, 2017 FROM: JIM SCHAAD, Director Department of Transportation BY: DUANE MYERS, Fleet Manager Department of Transportation, Fleet Management Division CLIFF TRAUGH, Sr. Management Analyst Department of Transportation, Fleet Management Division SUBJECT ..Title Actions pertaining to a purchase contract with Pap� Kenworth: 1. ***RESOLUTION - 32nd amendment to the Annual Appropriation Resolution (AAR) No. 2017-165 appropriating $212,500 for Kenworth T300 cab and chassis, larger bodies, and high volume air compressors to complete this project (Requires 5 affirmative votes) (Subject to Mayor's veto) 2. Approve the award of a purchase contract to Pap� Kenworth of Fresno CA, for the purchase of two Kenworth T300 cab and chassis in the amount of $136,000 ..Body RECOMMENDATION Staff recommends Council approve the 32nd Amendment to the Annual Appropriation Resolution (AAR) No. 2017-165 appropriating $212,500 for two Kenworth T300 cab and chassis, two utility bodies, and two high volume air compressors, and approve the award of a purchase contract to Pap� Kenworth for the purchase of two Kenworth T300 cab and chassis in the amount of $136,000. EXECUTIVE SUMMARY The Water Division, under the Department of Public Utilities, wishes to purchase two Kenworth T300 series cab and chassis to correctly equip the growing maintenance team. The new trucks will be used by the maintenance team to repair and replace water lines throughout the City. Each cab and chassis will be outfitted with a high volume air compressor designed to operate two jack hammers, and a utility body large enough to contain all needed materials. These units will also be designed with enough capability to haul a mini excavator on a trailer while fully loaded. The trucks will be purchased as additions to the Water Division fleet in an effort to right size the maintenance team and keep up with increasing infrastructure repairs. The Department of Transportation recommends the purchase based on the scope of work being performed by the maintenance team. The units would be purchased through a competitively solicited cooperative procurement process administered by the National Joint Powers Alliance (NJPA). BACKGROUND The Water Division, under the Department of Public Utilities is responsible for delivering safe drinking water to approximately 500,000 residential, commercial, and industrial customers over a 114 square mile area. This mission is accomplished through continuous repair and maintenance to the system. These maintenance activities often require crews to excavate and expose water lines to complete repairs. This task requires large trucks to haul pipe, parts, and excavation equipment to and from the jobsite. The Water Division currently uses F-550 trucks to haul pipe fittings, jack hammers, tools, and mini excavators. These trucks are loaded to capacity daily, which has led to pre-mature break downs, and ultimately engine failures. The new pipe fitter trucks will be based on a Kenworth T300 series cab and chassis which has a 33% higher capacity over the F-550 series trucks. This upgrade from class five to class six will make the trucks robust enough to haul all needed equipment to and from the jobsite safely and efficiently. Due to the frequency of truck break downs caused by heavy loading and the increase in infrastructure repairs over the last several years, the Water Division has been left with a shortage of class five trucks. Currently the crews that will operate the two new trucks are working out of several half ton pickups. This creates a situation where multiple trips between the water yard and jobsite are required just to get all the needed materials. The two new pipe fitter trucks will eliminate this multiple trip problem by being self-contained, fully outfitted units, with all needed tools and parts on board. The equipment will be purchased utilizing competitively solicited cooperative procurement process administered by the National Joint Powers Alliance (NJPA). The purchase price per unit is $68,000. This price includes the NJPA discount applied to City purchases as well as sales tax at 7.975%. The Purchasing Department has approved this contract and recommends Council to approve. ENVIRONMENTAL FINDING By the definition provided in the California Environmental Quality Act (CEQA) Guidelines Section 15378, the award of this contract does not qualify as a "project," as defined by CEQA. LOCAL PREFERENCE Local preference was not implemented because the City is purchasing these items through another governmental entity. FISCAL IMPACT No general funds will be used to purchase these items. The funding for the additional appropriations will come from the Water Division replacement fund. Attachment: 32nd Amendment to the Annual Appropriation Resolution No. 2017-165