FROM: Robert Thompson, General Manager
Originator: Riaz Moinuddin, Director of Operations & Maintenance
SUBJECT:
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COMBINATION SEWER CLEANING TRUCK PURCHASE
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GENERAL MANAGER'S RECOMMENDATION
recommendation
RECOMMENDATION: Recommend to the Board of Directors to:
A. Approve a Purchase Order to Haaker Equipment Company to purchase one new/unused Combination Sewer Cleaning Truck using Sourcewell Cooperative No. 101221-VTR for a total amount not to exceed $973,913, including freight and taxes; and
B. Approve a contingency of $29,217 (3%).
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BACKGROUND
Orange County Sanitation District (OC San) owns and operates three combination sewer cleaning trucks within its fleet. The trucks are utilized to maintain the collection systems by cleaning sewer pipes, pump station wet wells, and responding to emergencies such as sewer spills using a combination of vacuum and water jetting technology. The trucks service approximately 388 miles of regional pipes and 15 outlying pump stations. Three trucks are needed to complete the volume of work on an annual basis and comply with the SSMP as required by the SWRCB.
RELEVANT STANDARDS
• Participate in local, state, and national cooperative purchasing programs
• Maintain a proactive asset management program
• Ensure the public’s money is spent wisely
PROBLEM
The truck identified for replacement is nine years old, with 54,000 miles. While mileage is relatively low, the truck and onboard systems are nearing the end of their useful life and exhibiting increased system breakdowns requiring costly repairs due to use. Repair costs are increasing and beyond an economic sense to continue repairing due to the condition of the vehicle and onboard grit removal systems. The length of repairs limits the collection system staff's ability to address the needs of the collection system without a rental truck while carrying out the repairs. Furthermore, heavy-duty diesel-fueled trucks will eventually be phased out due to air emissions regulations.
PROPOSED SOLUTION
Replace the existing combination sewer cleaning truck that is aging, with a new compressed natural gas (CNG) fueled truck to ensure proper maintenance of the collection system and the ability to respond to sewer spills effectively while adhering to vehicle emissions regulations.
TIMING CONCERNS
Delaying the replacement of this critical equipment jeopardizes OC San’s ability to comply with its SSMP and meet vehicle emissions regulations. The truck identified for replacement is diesel-fueled and will be phased out due to vehicle emissions standards changes as a result of the CARB Advanced Clean Fleets (ACF) adoption. The ACF rules govern internal combustion engines with a phased-out approach in favor of fuel cell/hydrogen-fueled and electrification power sources. The ACF regulation further limits purchasing options to zero-emission vehicles (ZEV) in increasing concentration starting January 1, 2024. Purchasing the replacement CNG-powered unit now ensures OC San is compliant with current regulations ahead of the requirement change. It also allows OC San to add this replacement internal combustion engine vehicle over a ZEV to its fleet by issuing a purchasing contract prior to January 1, 2024, which the new regulation states is acceptable considering lead times to delivery.
RAMIFICATIONS OF NOT TAKING ACTION
The vehicle selected for replacement is unreliable, deteriorating, and is no longer economical to maintain. The increased need for rental equipment during repairs will increase costs further to maintain the vehicle.
PRIOR COMMITTEE/BOARD ACTIONS
N/A
ADDITIONAL INFORMATION
OC San has provisions to purchase materials, services, and equipment from cooperative agreements. OC San is utilizing Sourcewell (formerly National Joint Powers Alliance), Cooperative Contract No. 101221-VTR with Haaker Equipment Company, under Ordinance No. OCSD-61, Section 2.03(B), Cooperative Purchases.
The amount of savings under this cooperative agreement is $14,722.44 (3%) versus a non-cooperative agreement list pricing. These costs are inclusive of freight and sales tax.
OC San is required to reduce or eliminate large diesel-fueled vehicles by CARB. Two of the three combination sewer cleaning trucks are alternatively fueled by CNG; the one remaining truck is diesel-fueled. Replacement trucks are procured with options to comply with CARB requirements.
CEQA
N/A
FINANCIAL CONSIDERATIONS
This request complies with the authority levels of OC San’s Purchasing Ordinance. This item has been budgeted. Line item: Section 06, Page 80 Fiscal Year 2023-24.
ATTACHMENT
The following attachment(s) may be viewed online at the OC San website (www.ocsan.gov) with the complete agenda package:
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