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 - 31st amendment to the Annual Appropriation Resolution (AAR) No. 2017-165 appropriating $306,000 for two Kenworth T300 cab and chassis, two utility bodies, and two high volume air compressors (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 31st Amendment to the AAR No. 2017-165 appropriating $306,000 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 trucks to replace existing units. 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 needed pipe fitter trucks will be purchased as replacements for units past their useful life. The re-appropriated $306,000 will cover the cost of the complete trucks. The Department of Transportation is requesting approval to purchase the two cab and chassis from Pap� Kenworth at $136,000. The remaining $170,000 of needed equipment will be purchased on separate approved contracts. The Department of Transportation recommends the purchase based on repair cost, age, and safety concerns. The cab and chassis will 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 percent 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. The existing two units have been identified for replacement due to age and excessive repair costs. The first unit experienced a total engine failure in March, and the second unit is five years past its useful life. Staff recommends replacement of these units as soon as possible in order to keep up with the continuous maintenance schedule of the water system. The equipment will be purchased utilizing competitively solicited cooperative procurement process administered by the 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 percent. The Purchasing Division 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: Resolution Amending the AAR