REPORT TO THE CITY COUNCIL May 17, 2018 FROM: JIM SCHAAD, Director Department of Transportation BY: DUANE MYERS, Fleet Manager Department of Transportation/Municipal Fleet Division CLIFF TRAUGH, Sr. Management Analyst Department of Transportation/Municipal Fleet Division SUBJECT ..Title Approve the award of a cooperative purchase agreement to Aries Industries, Inc., for the purchase of two video inspection box trucks in the amount of $629,000 ..Body RECOMMENDATION Staff recommends Council approve the award of a cooperative purchase agreement to Aries Industries, Inc., for the purchase of two video inspection box trucks in the amount of $629,000. EXECUTIVE SUMMARY The Wastewater Management Division, under the Department of Public Utilities, wishes to purchase two video inspection box trucks to replace units past their useful life. The two replacement units will be used by the collection system maintenance team to inspect sewer systems. Each new truck will be an Aries Industries Pathfinder system, outfitted in a 16-foot enclosed body, mounted on a Ford F-550 chassis. This combination has proven to be reliable within the City fleet and is the equipment preferred by the collection system maintenance team. The Municipal Fleet Division recommends this purchase based on the age of the trucks identified for replacement. The units would be purchased through a competitively solicited cooperative procurement process administered by the Houston-Galveston Area Council (HGAC). BACKGROUND The Wastewater Management Division is responsible for the day-to-day operations of the sanitary sewer (collection) system. This includes customer service call responses, line inspection, preventative maintenance, and repair of the system. Currently, there are over 1,500 miles of sewer main that service the city, ranging in size from 6 to 84 inches in diameter. To verify the sewer system is in good working order, staff utilizes remotely controlled, self-propelled cameras to visually inspect all sewer lines annually. Three camera truck units working every day are required to maintain this inspection schedule. Each truck is outfitted with two cameras that can operate in 6- to 84-inch diameter piping. The work requires camera units with very long leads and high-definition capability to spot potential problems before they become hazardous leaks and require costly excavation. The video inspection box trucks are on a ten-year replacement schedule, which has been established by the Municipal Fleet Division as the target replacement time. Two of the three units have been identified for replacement as they are over this target by two years. The equipment will be purchased utilizing competitively solicited cooperative procurement process administered by the HGAC. The HGAC procurement documentation is attached. The purchase price per unit is $314,500, which includes the HGAC discount applied to City purchases, as well as delivery and sales tax at 7.975 percent. The City Purchasing Manager has determined this HGAC procurement meets the competitive bidding requirements outlined in Section 1208 of the City Charter and Administrative Order 3-1 and recommends Council to approve. ENVIRONMENTAL FINDING By the definition provided in the California Environmental Quality Act Guidelines Section 15378, the award of this agreement does not qualify as a "project." LOCAL PREFERENCE Local preference does not apply as this is a cooperative purchase agreement. FISCAL IMPACT No general funds will be used to purchase these items. The funding to cover the purchase cost of the two video inspection box trucks has been included in the FY18 adopted budget under the operations of the Wastewater Management Division. Attachments: HGAC Request for Proposal HGAC Bid Evaluation HGAC Bid Tab Summary HGAC Procurement Summary HGAC/Aries Industries Contract