City Council
April 16, 2024
RECOMMENDATION
AGENDA REPORT
Staff Recommends That The City Council Adopt A Resolution Authorizing The City Administrator To Award A Contract To Fleetworks Inc., The Lowest Responsive And Responsible Bidder, A Local Business Enterprise, In An Amount Not-To-Exceed Six Hundred Thousand Dollars ($600,000) Per Year To Provide Heavy Equipment Maintenance Service and Repairs For A Three (3) Year Term, April 1, 2024 To March 31, 2027, And Authorizing Two (2) Additional One (1) Year Agreement Extensions In An Amount Of Six Hundred Thousand Dollars ($600,000) Per Year For A Total Not-To-Exceed Contract Amount Of Three Million Dollars ($3,000,000) For A Term Of Five (5) Years.
REASON FOR SUPPLEMENTAL
As requested by the Public Works and Transportation Committee (PWTC) at the March 26, 2024, meeting, this supplemental report identifies the quantity of heavy equipment in the City of Oakland (City) currently out of service for repairs across City departments and the associated service impacts related to the numerous trucks that are out of service due to extensive repairs.
The City’s existing fleet of trucks and heavy equipment has a current average age of 13.1 years.
The industry recommended average age of a truck and heavy equipment fleet is (6) years, and most trucks and heavy equipment have an optimal service life of between 10 to 12)years and should be replaced once exceeded. Over half of the City’s truck and heavy equipment fleet has exceeded the useful service life. The impacts of operating and retaining equipment that has exceeded the useful service life includes:
• Excessive downtime for major repairs
• Increased labor and parts costs associated with performing extensive repairs • Increase in the number of equipment units needed to cover times while equipment is in the shop for repairs
TO: Jestin D. Johnson FROM: G. Harold Duffey
City Administrator Director, Oakland Public
Works
SUBJECT: SUPPLEMENTAL REPORT -
Fleetworks Inc. Contract for Heavy
Equipment Service and Repairs
DATE: March 28, 2024
City Administrator Approval Date:
Jestin Johnson (Apr 4, 2024 20:01 PDT)
Apr 4, 2024
Jestin D. Johnson, City Administrator
Subject: SUPPLEMENTAL REPORT - Fleetworks Inc. Contract for Heavy Equipment Service and Repairs
Date: March 28, 2024 Page 2
City Council
April 16, 2024
• Increased towing costs when units break down in the field • Rental costs associated with securing replacement equipment
Additionally, there are operational impacts throughout the Divisions/Departments that rely on functioning and safe equipment to perform their tasks in the field.
Currently, there are a total of 75 equipment units out of service for maintenance and repairs with 38 equipment units out of service for more than 30 days. Attachment A provides the most recent weekly ‘out of service’ report which lists the equipment unit number, the assigned operating division, the date it was brought to the shop and the type of repairs being performed.
Operational Impacts
In Oakland Public Works (OPW), Keep Oakland Clean and Beautiful (KOCB) Division, when equipment is out of use for repair it negatively impacts service deliverables in several ways. One of KOCB’s most critical services impacted is the street sweeping fleet, and extended loss of time due to repair delays or insufficient budget for replacement vehicles places street sweeping operations at risk. The routes assigned to staff are determined based on posted signage throughout the city that indicate the day and times the sweeping is scheduled to occur. One or more street sweeping vehicles out of service for extended periods can also impact revenue collection for associated parking citations along street sweeping routes.
Additionally, when the equipment's capabilities are unique or not easily duplicated, critical job functions must pause while the equipment is down. The following are examples of equipment with unique functions used by KOCB that have multiple units which spent extended periods waiting for service in the past two years: Lightning Loader (6 years old), CNG Elgin Broom Bear (6-11 years old), Pickup W/Paintbody (8 years old), 25-yard large packer truck (6-18 years old), Isuzu 6yd mini packer truck (4-8 years old) and Toro dingo track loader (1-11 years old). When this equipment is out of service, crews are put at greater risk of injury if staff must use other equipment that isn’t intended or designed for alternative uses. For example, packer and dingo units are the most ergonomic way to load heavy materials or lift and remove them, respectively, and it is not considered safe or best practice to use other equipment to perform this work.
Additionally, KOCB experiences loss of productivity when equipment is out of service and staff on duty do not sufficient vehicles to dispatch efficiently throughout the service area.
In OPW’s Sewers and Storm Drain Maintenance Divisions, critical and Federally-mandated operations are impacted when trucks such as Rodders and Flushers are in the repair shop. As a result, managers have found it necessary at times to keep personnel at the service center to perform “busy work” while they are unable to conduct work in the field or to utilize hydro flushers that were previously designated to perform preventive maintenance (PM) and respond to urgent complaints. The Division is also required to televise and rate the interior condition of 92 miles of sewer pipes annually in order to comply with the Federal Consent Decree. This requires specialized truck-mounted closed circuit television (CCTV) camera equipment, however, it is not unusual to have no CCTV trucks available to perform scheduled Consent Decree work, many are in the shop for repairs and the others are committed to responding to emergencies or engineering requests. As a result, staff has had to outsourced to vendors. The lack of Jestin D. Johnson, City Administrator
Subject: SUPPLEMENTAL REPORT - Fleetworks Inc. Contract for Heavy Equipment Service and Repairs
Date: March 28, 2024 Page 3
City Council
April 16, 2024
equipment available presents an operational challenge every day when it comes to scheduling crews and fulfilling work assignments.
In Oakland Department of Transportation (OakDOT), Streets and Sidewalks Division, the negative impacts due to lack of available equipment have impacted the ability to complete internal paving projects. The Division’s internal paving accomplishments have gone from 12 miles a year to only 3 miles due to the loss of a milling machine because of needed repairs. Staff are unable to service road repair requests and perform pothole repairs, as the Division has access to only 1 patcher truck while the other 3 are out of service. Staff are unable to accommodate base repairs to Oakland’s streets because the ten-wheel vehicles are also out of service for repairs.
In OPW’s Parks and Tree Services Division, equipment out of service for repair has several adverse effects. In the best case, it is an inconvenience which has small but definite impacts on productivity by requiring staff to double up in vehicles, for example, meaning the entire crew can only visit one site at a time, or carry limited materials or equipment. More commonly, however, the loss of a vehicle or other major piece of equipment to the service queue can go on for weeks or even months, and when the equipment's capabilities are unique or not easily duplicated, critical job functions cannot be performed while the equipment is down.
ACTION REQUESTED OF THE CITY COUNCIL
Staff Recommends That The City Council Adopt A Resolution Authorizing The City Administrator To Award A Contract To Fleetworks Inc., The Lowest Responsive And Responsible Bidder, A Local Business Enterprise, In An Amount Not-To-Exceed Six Hundred Thousand Dollars ($600,000) Per Year To Provide Heavy Equipment Service and Repairs For A Three (3) Year Term, April 1, 2024 To March 31, 2027, And Authorize Two (2) Additional One (1) Year Agreement Extensions For An Amount Of Six Hundred Thousand Dollars ($600,000) Per Year For A Total Not-To-Exceed Contract Amount Of Three Million Dollars ($3,000,000) For A Term Of Five (5) Years Without Returning To Council.
For questions regarding this report, please contact Joseph Williams, Equipment Services Manager, at (510) 615-5489.
Respectfully submitted,
G. HAROLD DUFFEY
Director, Oakland Public Works
Reviewed by:
Richard Battersby, Assistant Director
Jestin D. Johnson, City Administrator
Subject: SUPPLEMENTAL REPORT - Fleetworks Inc. Contract for Heavy Equipment Service and Repairs
Date: March 28, 2024 Page 4
City Council
April 16, 2024
Oakland Public Works
Prepared by:
Joseph Williams, Manager
Equipment Services Division
Attachment (1):
A: Weekly ‘Out of Service’ Report from 03/22/24