Public Works and Transportation Committee
June 11, 2024
AGENDA REPORT
TO: Jestin Johnson FROM: Michael Kashiwagi
City Administrator Interim Director Oakland
Public Works
SUBJECT: Mission Critical OPW Storm Drain
Flusher Truck Acquisition
DATE: May 13, 2024
City Administrator Approval Date:
RECOMMENDATION
Staff Recommends That The City Council Adopt A Resolution, Awarding A Contract To Municipal Maintenance Equipment Inc., A Vac-On Local Authorized Dealer, In The Amount Not To Exceed Seven Hundred Seventy-Five Thousand Dollars ($775,000.00) For The Purchase Of One (1) Jet Truck Vacuum Cleaner Model VPD3611HE/1300 In Accordance With Cooperative Agreement Sourcewell Contract No. 101221-VAC, Oakland Municipal Code Section 2.04.080, And City Council Budget Appropriations And Allocation in The Enterprise Sewer Fund (3100) Funds As Adopted By The Fiscal Year 2023-25 Budget.
EXECUTIVE SUMMARY
The Oakland Public Works Department’s (OPW’s) Bureau of Maintenance and Internal Services (BMIS) is responsible for the procurement of the City of Oakland’s (City) fleet and equipment, including public safety and infrastructure equipment. Timely acquisition and repair of public safety and infrastructure equipment by OPW-BMIS is essential to ensuring continuity and responsiveness of the City’s emergency and nonemergency services to the public.
Under Oakland Municipal Code (OMC) Chapter 2.04.080,, the City Administrator may purchase supplies or services as defined in Section 2.04.010, through legal contracts of other governmental jurisdictions or public agencies that were awarded pursuant to an appropriate competitive process without further contracting, solicitation, or formal bidding. This contracting mechanism is called a cooperative agreement.
OMC 2.04.080 sets no limit on the size of cooperative agreements that may be entered by the City Administrator. The proposed recommendations would align practices for existing cooperative agreements with OMC 2.04.020, which authorizes the City Administrator to enter into contracts up to $250,000.
The funding proposed in this resolution has been allocated and appropriated in Enterprise Sewer Fund 3100 Fiscal Year (FY) 2023-25 Adopted Budget.
Jestin Johnson (May 29, 2024 20:57 PDT)
May 29, 2024
Justin Johnson, City Administrator
Subject: Mission Critical OPW Storm Drain Flusher Truck Acquisition Date: May 13, 2024 Page 2
Public Works and Transportation Committee
June 11, 2024
The jet truck vacuum is critical equipment for keeping City storm drains clean from debris and preventing flooding. Currently, the OPW-BMIS is operating with 1 (one) jet truck storm drain vacuum that has exceeded its lifecycle.
BACKGROUND / LEGISLATIVE HISTORY
On June 26, 2023 the City Council adopted the FY 2023-25 Budget, Resolution No. 89804 C.M.S., which included appropriations for equipment replacements for OPW-BMIS, Sewer and Drainage Divisions. Equipment that has exceeded its expected lifecycle is prioritized for replacement, and the Sewer Division has identified that replacing the jet truck storm drain vacuum is the most critical acquisition.
Section 2.04.080 of the Oakland Municipal Code (OMC) allows the City Administrator to purchase supplies or services through legal contracts/cooperative agreements of other governmental jurisdictions or public agencies that were awarded pursuant to an appropriate competitive process.
Sourcewell Contract is a government cooperative purchasing program which manages the solicitation requirements, bids, and awards contracts to the most qualified suppliers with lowest price, and through cooperative agreement the City can access the lower pricing, typically the best available.
Vac-Con Inc., the manufacturer of Sewer Vacuum, Hydro-Excavation, and Municipal Pumping Equipment was awarded a Cooperative Agreement Sourcewell Contract No. 101221-VAC, the contract term is from November 21, 2021 to November 29, 2025. As the manufacturer, Vac-Con Inc. does not perform direct sales. Thus, they will authorize a local dealer to perform the sale.
Municipal Maintenance Equipment Inc. (MME) receives authorization as the local dealer by Vac- On to sell the jet truck storm drain vacuum at the contract price, which has been bid-out competitively. Procuring the jet truck storm drain vacuum from Vac-On through MME ensures that the City is getting the best available price. The City of Oakland will be conducting business with MME to purchase the Vac-Con manufactured Jet Vacuum Cleaner truck, therefore staff recommends the City Council approve the proposed purchase contract with Municipal Maintenance Equipment Inc as the authorized local dealer.
ANALYSIS AND POLICY ALTERNATIVES
The OPW-BMIS Sewer and Drainage Division has two vacuum jet trucks with one unit currently inoperable. These vehicles are used to clear obstructions and remove debris from critical storm drain infrastructure. If the second unit goes out of service for maintenance or repairs, the division will have no equipment to remove debris from storm drains. Failure to purchase this equipment immediately increases the risk of flooding and potential associated damage to residences and businesses throughout the city.
The use of cooperative agreements allows the City maintain uninterrupted public services, and enables the City to access commodities and services at lower prices, resulting in significant cost savings to the City. In addition, the timeline for executing cooperative agreements is Justin Johnson, City Administrator
Subject: Mission Critical OPW Storm Drain Flusher Truck Acquisition Date: May 13, 2024 Page 3
Public Works and Transportation Committee
June 11, 2024
significantly shorter compared to other formal contracts because the competitive solicitation process has already been completed by another governmental jurisdiction or public agency, thereby saving staff time and resources.
The cooperative agreements proposed in this proposal Sourcewell Contract No.101221-VAC for the Sewer Vacuum Jet were competitively bid out, and the vendor was deemed the winning bidder and the most qualified vendor with the lowest price.
Staff recommends entering into a cooperative agreement to contract with Municipal Maintenance Equipment, due to the following potential benefits that will accrue by adopting this resolution:
Proven Reliability: Municipal Maintenance Equipment has been a reliable supplier for other types of equipment to the division. It has paid and maintains a current City of Oakland Business Tax License.
Cost Efficiency: The cooperative agreement proposed was competitively bid, and the vendor was deemed the lowest, responsible, and most qualified supplier. Piggybacking on this contract will save City time and money by not having to conduct its own RFQ/P process.
Public Safety Measure: Adoption of this proposed resolution will allow the City to operate reliable equipment and spare units on-hand to maintain storm drains and respond to flooding emergencies as quickly as possible.
Dateline Spending: Rather than having the City of Oakland's Purchasing Division conduct a separate Request For Qualifications (RFQ) which will typically takes several months, the use of another jurisdiction’s legal contract/cooperative will save time and ensure the spending deadline June 30, 2024 is met in accordance with the FY 2023-25 Adopted Budget.
The Sewer and Drainage Division has been operating with (1) one jet truck storm drain vacuum which is beyond its economic service life, therefore it is essential for the City to procure this equipment immediately.
Staff recommends approval of the proposed resolution to allow for uninterrupted Oakland Public Works operations. If the proposed resolution is not approved, the Purchasing Unit will have to conduct an RFQ process that would take months to complete, and if the current equipment becomes inoperable before the new one is available, it would put City storm drains at risk of being clogged which causes flooding.
Approval of the proposed resolution supports the City’s critical services and priorities, including holistic community safety and vibrant, sustainable infrastructure, by allowing for ongoing Oakland Public Works operations.
FISCAL IMPACT
Funding for the proposed contract is available in the Fiscal Year 2023-2025 Biennial Adopted Budget as approved by the City Council in the following funding sources:
Justin Johnson, City Administrator
Subject: Mission Critical OPW Storm Drain Flusher Truck Acquisition Date: May 13, 2024 Page 4
Public Works and Transportation Committee
June 11, 2024
Dept Fund Org Project Expense Program Total
OPW 3100-Sewer
Service
30532-
Drainage
1000010-
Admin
Project
57612-
Vehicle
Replacement
IN14-Storm
Drain
Management
$775,000
PUBLIC OUTREACH / INTEREST
No outreach was deemed necessary for the proposed policy action other than what was already conducted during the FY 2023-25 Budget development process.
COORDINATION
The Oakland Public Works Department prepared the requested action. This report and resolution were reviewed by the Office of the City Attorney and Budget Bureau.
SUSTAINABLE OPPORTUNITIES
Economic: Adoption of the proposed resolution will reduce maintenance costs, provide more reliable equipment, and is the most efficient way to carry-out the City’s service needs for FY 2023-25.
Environmental: The Equipment Services Division strives to maintain current industry standards for vehicles and equipment. Adoption of this resolution will reduce environmental impact by acquiring newer equipment that uses less fuel and has lower tailpipe emissions.
Race & Equity: The equipment replacement acquisition gained from this cooperative agreement will support Oakland Public Works operations. As the City’s budgeted activities increasingly prioritize race & equity, these agreement services support that mission.
ACTION REQUESTED OF THE CITY COUNCIL
Staff Recommends That The City Council Adopt A Resolution, Awarding A Contract To Municipal Maintenance Equipment Inc., A Vac-On Local Authorized Dealer, In The Amount Not To Exceed Seven Hundred Seventy Five Thousand Dollars ($775,000.00) For The Purchase Of 1 (One) Jet Truck Vacuum Cleaner Model VPD3611HE/1300 In Accordance With Cooperative Agreement Sourcewell Contract No. 101221-VAC, Oakland Municipal Code Section 2.04.080, And City Council Budget Appropriations and Allocation in the Enterprise Sewer Fund 3100 As Adopted By The Fiscal Year 2023-25 Budget.
For questions regarding this report, please contact Joseph Williams, Equipment Services Manager, at (510) 615-5489.
Justin Johnson, City Administrator
Subject: Mission Critical OPW Storm Drain Flusher Truck Acquisition Date: May 13, 2024 Page 5
Public Works and Transportation Committee
June 11, 2024
Respectfully submitted,
MICHAEL KASHIWAGI
Director, Oakland Public Works
Reviewed by:
Richard Battersby, Assistant Director
Oakland Public Works
Prepared By
Joseph Williams, Equipment Services Manager
Oakland Public Works
Attachments (3):
A. Sourcewell Contract No. 101221-VAC, Contract, awarding Vac-On the winning bidder.
B. Vac-On Local Dealer Authorization Letter, Vac-On as the Cooperative Agreement Holder and manufacture authorizing Municipal Maintenance Equipment as the Local Dealer.
C. Municipal Maintenance Equipment (MMC) 2024 City of Oakland Business Tax License, proven as reliable vendor, MMC maintains their business license.