REPORT TO THE CITY COUNCIL
FROM: BRIAN BARR, Director
General Services Department
BY: MIGUEL RAMIREZ, Senior Management Analyst
General Services Department
SUBJECT
Title
Approve the award of a cooperative purchase agreement to Pape Kenworth of Fresno, CA, for the purchase of one Kenworth T880 crane truck in the amount of $465,145 for the Department of Public Utilities, Wastewater Management Division.
Body
RECOMMENDATION
Staff recommends Council approve the award of a cooperative purchase agreement to Pape Kenworth of Fresno, CA, for the purchase of one Kenworth T880 crane truck in the amount of $465,145.
EXECUTIVE SUMMARY
The Department of Public Utilities (DPU), Wastewater Management Division seeks to purchase one Kenworth T880 crane truck as a replacement. The new truck for the Wastewater Management Division will be a 26-ton crane truck. This equipment is necessary to perform critical maintenance at the Wastewater Treatment Plant by hoisting large pipes and wastewater pumps. The new unit will be purchased through a competitively solicited cooperative procurement process administered by Sourcewell.
BACKGROUND
The Department of Public Utilities, Wastewater Management Division is responsible for the collection and treatment of wastewater produced by the City of Fresno. This is accomplished through the operation and maintenance of the Wastewater Treatment Plant as well as the collection system supplying it. To continue this maintenance, the new Kenworth T880 crane truck will be utilized in the removal and installation of large pipes and wastewater pumps, as well as re-setting light poles if removed for underground collection system maintenance.
Currently, this work is done with one aging crane truck that is underpowered and struggling with maintenance issues. The new Kenworth T880 crane truck will be built to a specification similar to the existing unit, upgraded to improve capacity. The unit will be updated with the latest technology to offer superior maneuverability, visibility, and performance. The new unit will be compliant with the applicable US 2010 emissions standard, while providing improved fuel economy and power.
The heavy truck class of equipment is on a 10 year or 100,000-mile replacement schedule which has been established by the Fleet Management Division as the optimum replacement point. Currently the unit identified for replacement is more than 14 years old and has incurred significant repair costs over the last few years.
The new trucks will be purchased through a competitively solicited cooperative procurement process administered by Sourcewell. The total purchase price is $465,145, this price includes the Sourcewell discount applied to city purchases as well as delivery and sales tax at 8.35%. The Purchasing Division has approved this contract and recommends Council to approve.
ENVIRONMENTAL FINDINGS
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 is not applicable because this is a cooperative purchase. However, Pape Kenworth is located in the city of Fresno.
FISCAL IMPACT
The funding to cover the purchase cost of the Kenworth T880 crane truck has been included in the FY2023 adopted budget under the operations of the Department of Public Utilities, Wastewater Management Division. The source of funding for this project is the Wastewater Operating Fund, generated primarily by the collection of customer user fees.
Due to global supply chain constraints the automotive industry has faced shortages of raw materials which has created massive under production in many vehicle types. This resulted in a lack of availability causing projects to not get completed within the typical 12-month period. Therefore, this funding was not spent in FY2023 and if approved, the FY2023 funds will be re-appropriated to FY2024 to complete this acquisition.
Attachments:
Cooperative Purchase Agreement
Pape Kenworth Contract#060920-KTC
Original RFP
Proof of Publication
Proposal Opening Record
Proposal Evaluation
Comment and Review
Board Resolutions