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Home My WebLink About2006 CON American Hydro Vac - Sewer Flusher TruckRESOLUTION NO. 2006 — 258 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY WAIVING THE BIDDING PROCESS AND ACCEPTING A PROPOSAL IN THE AMOUNT OF $217,375 FROM AMERICAN HYDRO -VAC EQUIPMENT COMPANY FOR THE PURCHASE OF A REPLACEMENT SEWER FLUSHER TRUCK WHEREAS, on November 21, 2006, the City Council adopted Resolution No. 2006- 236 authorizing an intrabudget adjustment in the amount of $217,380 for the purchase of a new sewer flusher truck; and WHEREAS, as of January 1, 2007, California emissions standards are changing, which will make our current flushing truck obsolete; and WHEREAS, research conducted by staff indicates that the best and most cost effective way to obtain a flusher truck by January 1, 2007 that would meet the new California emissions standards is to purchase a demo unit and trade in the City's old truck for a total cost of $217,375, which is $30,874 less than buying a new one that would take at least six months to deliver; and WHEREAS, Section 2.60.220 D of the National City Municipal Code provides that the requirements of formal bidding may be disposed with when the City Council determines by best business judgment that due to special circumstances, it is in the City's best interest to purchase a commodity directly or enter into a contract without compliance with the bidding procedure. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of National City hereby finds that special circumstances exist, and authorizes the Purchasing Agent to waive the bidding process and accept a proposal in the amount of $217,375 from American Hydro -Vac Equipment Company for the purchase of replacement sewer flusher truck. PASSED and ADOPTED this 5th day of December 006. on Morrison, Mayor ATTEST: Micael R. Dalla Clerk itC APPROVED AS TO FORM: George H. Eiser, III City Attorney Passed and adopted by the Council of the City of National City, California, on December 5, 2006, by the following vote, to -wit: Ayes: Councilmembers Morrison, Natividad , Parra, Zarate. Nays: None. Absent: None. Abstain: None. AUTHENTICATED BY: RON MORRISON Mayor of the City of National City, California City Cterk of the City of National City, California By: Deputy I HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of RESOLUTION NO. 2006-258 of the City of National City, California, passed and adopted by the Council of said City on December 5, 2006. City Clerk of the City of National City, California By: Deputy City of National City, California COUNCIL AGENDA STATEMENT December 5, 2006 MEETING DATE AGENDA ITEM NO. 16 ITEM TITLE Resolution accepting a proposal from American Hydro -Vac for the purchase of a replacement Sewer Flusher truck from American Hydro -Vac Equipment Co., in the amount of $217,375.15 to be paid from the Sewer Automotive Equipment Fund. PREPARED BY DEPARTMENT EXT. Brenda E. Hodges r ...-..L..... D A P..... Dept x4570 EXPLANATION See explanation attached. L Environmental Review X NIA MIS Approval Financial Statement $217,375.15 is available in the Sewer Automotive Equipment Fund Approved By: 4 4)4 . Finance Director 125-422-222-511 Account No. STAFF RECOMMENDATION L In concurrence with the acting ublic Works Director, it is recommended that the award be made to American Hydro -Vac Equipment Company, and that authority be given to the Purchasing Agent to issue resulting purchase order. BOARD / COMMISSION RECOMMENDATION not applicable ATTACHMENTS ( Listed Below) Resolution No. Explanation Resolution A-200 (Rev. 7/03) C.-2c'oC.-`11 EXPLANATION On November 21, 2006, Council authorized an intrabudget adjustment to transfer $217,380 from account 125-2501 (sewer undesignated reserves) to account 125- 422-222-511 (sewer automotive equipment fund) for the purchase of a new sewer flusher truck. As of January 1, 2007, California emissions standards are changing, which will make our current flushing truck obsolete. Research was conducted to consider upgrades versus brands, prices and options for a replacement. The cost to upgrade our current truck to ensure compliance with new emissions standards would be approximately $15,000.00. But at 11 years old, our current Camel flusher has reached the end of its life cycle. A new truck from the City of San Diego bid would cost $248,250. The new unit would take up to 6 months to build and deliver. Our flusher will be non -compliant in a month, at which time we'd have to invest in the upgrade or rent a unit until the new one arrived. The best, and most cost effective option, is to purchase a demo unit, and trade in our old one for a total cost of $217,375.15, saving the City approximately $30,874.00. The added benefit is that the demo unit is available immediately. Another agency has expressed interest in our current flusher. This is a great opportunity for the City. Our market for disposing of this unit is very limited, since it will be non -compliant in California soon. American Hydro -Vac Equipment Company has offered to handle the trade-in and sell us a demo unit, that comes with a full warranty, and is essentially the same brand and spec as the new unit with minor differences that are acceptable to staff. The total cost for this transaction would be: $218,276.00 + $19,099.15 $237,375.15 - $20, 000.00 $217,375.15 discounted price of demo unit plus 8.75% tax subtotal less trade-in for old flusher total cost As allowed by Purchasing Ordinance #1480, Section 2.60.22(D), it is requested that Council waive the bidding requirement since special circumstances exist; and determine that it is in best interest of the City to purchase the demo unit and arrange for a trade-in through American Hydro -Vac Equipment Co. RESOLUTION NO. 2006 — 258 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY WAIVING THE BIDDING PROCESS AND ACCEPTING A PROPOSAL IN THE AMOUNT OF $217,375 FROM AMERICAN HYDRO -VAC EQUIPMENT COMPANY FOR THE PURCHASE OF A REPLACEMENT SEWER FLUSHER TRUCK WHEREAS, on November 21, 2006, the City Council adopted Resolution No. 2006- 236 authorizing an intrabudget adjustment in the amount of $217,380 for the purchase of a new sewer flusher truck; and WHEREAS, as of January 1, 2007, California emissions standards are changing, which will make our current flushing truck obsolete; and WHEREAS, research conducted by staff indicates that the best and most cost effective way to obtain a flusher truck by January 1, 2007 that would meet the new California emissions standards is to purchase a demo unit and trade in the City's old truck for a total cost of $217,375, which is $30,874 less than buying a new one that would take at least six months to deliver; and WHEREAS, Section 2.60.220 D of the National City Municipal Code provides that the requirements of formal bidding may be disposed with when the City Council determines by best business judgment that due to special circumstances, it is in the City's best interest to purchase a commodity directly or enter into a contract without compliance with the bidding procedure. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of National City hereby finds that special circumstances exist, and authorizes the Purchasing Agent to waive the bidding process and accept a proposal in the amount of $217,375 from American Hydro -Vac Equipment Company for the purchase of replacement sewer flusher truck. PASSED and ADOPTED this 5th day of December, 2006. Ron Morrison, Mayor ATTEST: Michael R. Dalla, City Clerk APPROVED AS TO FORM: George H. Eiser, III City Attorney