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4�owN of MEETING DATE: 11/05/12 ITEM NO: L tosA�oS COUNCIL AGENDA REPORT DATE: OCTOBER 22, 2012 TO: MAYOR AND TOWN COUNCIL FROM: GREG LARSON, TOWN MANAGER SUBJECT: AUTHORIZE THE TOWN MANAGER TO EXECUTE AN AGREEMENT WITH COAST COUNTIES PETERBUILT FOR THE PURCHASE OF A CATCH BASIN SEWER CLEANER IN AN AMOUNT NOT TO EXCEED $319,909 RECOMMENDATIONS: Authorize the Town Manager to execute an agreement with Coast Counties Peterbuilt for the purchase of a catch basin sewer cleaner in an amount not to exceed $319,909. BACKGROUND: As part of the FY 2012/13 Operating Budget, the Equipment Replacement Fund was approved, providing funds for replacement of high mileage or older vehicles that have become obsolete. Vehicles may also be replaced because they are not in compliance with regulatory measures, such as air emission standards or air quality board regulations. The Town's catch basin sewer cleaner is one of those vehicles that no longer meets the qualifications of the California Air Resource Board's fleet rules and is recommended for replacement. Additionally, there is a need for a new catch basin sewer cleaner because of new requirements based on the California Water Quality Control Board's stormwater permit. Town staff is required to perform ongoing maintenance of catch basins throughout the downtown area. Generally the Town Council does not review individual vehicle purchase requests. Fleet vehicle replacement purchases are reviewed annually through the Operating Budget and approved as part of the budget process. However, due to the purchase price of this vehicle, staff wishes to provide this information to Council for review and consideration. DISCUSSION: In December 2005, the California Air Resources Board implemented new, specific fleet rules and regulations, which included a mandate amount of diesel particulate matter emissions per agency. Under these new regulations, municipal agencies were given until January 2013 to remove or replace vehicles that are not in compliance. -� Cwt PREPARED BY: TODD CAPURSO DIRECTOR OF PARKS AND PUBLIC WORKS Reviewed by: Assistant Town Manager Town Attorney Finance N:\PPW \MANAGEMENT \COUNCIL \COUNCIL REPORTS\2012 Reports \110512 \Catch Basin Sewer Truck Vehicle Purchase.docx PAGE 2 OCTOBER 22, 2012 MAYOR AND TOWN COUNCIL SUBJECT: AUTHORIZE THE TOWN MANAGER TO EXECUTE AN AGREEMENT WITH COAST COUNTIES PETERBUILT FOR THE PURCHASE OF A CATCH BASIN SEWER CLEANER IN AN AMOUNT NOT TO EXCEED $319,909 DISCUSSION (cont'd): The current sewer cleaner which is more than 20 years old and was scheduled to be replaced seven years ago, prior to the Town transferring the sanitary sewer system to the West Valley Sanitation District (WVSD) in 2005. This vehicle is being used on a limited term basis due to the regulatory emission standards outlined by the resource board. In addition to compliance with fleet rules and regulations, Town staff is required to perform ongoing maintenance of catch basins throughout the downtown area. The California Regional Water Quality Control Board adopted a new Municipal Regional Stormwater Permit (MRP) in October 2009, establishing. requirements for National Pollution Discharge Elimination System (NPDES) for Bay Area counties. As a result of these new regulations, the Town installed 26 full trash capture devices in the downtown business district. The devices were funded through a grant from the San Francisco Estuary Partnership. The Town is responsible for the ongoing maintenance of the trash capture devices, which require a minimum of bi- annual cleaning, depending on the amount of debris that collects. During the peak storm weather season, more frequent cleaning may be required to prevent street flooding. The new catch basin sewer vehicle will provide the equipment resources necessary to perform these ongoing maintenance requests. The new vehicle will also assist with the maintenance of the newly constructed 42 -inch storm drain system along Wedgewood Avenue parallel to the La Rinconada golf course. In addition, there are multiple storm drain outfalls that filter into creek channels throughout Town that require ongoing maintenance by Town staff. During the wet weather season, these areas are subject to flooding. Requirements for storm drain system maintenance continue to increase, along with the additional trash capture devices, and storm sewer devices, which necessitates the purchase of a new catch basin sewer vehicle for the Town to respond to ongoing maintenance issues. Equipment Replacement Fund As part of the Town's Operating Budget, the Equipment Replacement Fund provides funding for the replacement acquisition of Town vehicles, equipment and information technology greater than $10,000. The Town's Equipment Replacement policy determines which assets should be replaced by evaluating predetermined age and /or mileage criteria. Through the Equipment Replacement Fund, Non -Point Source funds had been allocated to pay for replacement of the Town's street sweeper vehicle. In December 2011, the street sweeper vehicle caught on fire, which resulted in replacement of this asset sooner than anticipated. The replacement of this asset was paid for through the Town's insurance provider. As a result, the vehicle was replaced at no cost to the Town, and the funds allocated to this vehicle for replacement have become available to be re- allocated to other Non -Point Source- related equipment needs. PAGE 3 OCTOBER 22, 2012 MAYOR AND TOWN COUNCIL SUBJECT: AUTHORIZE THE TOWN MANAGER TO EXECUTE AN AGREEMENT WITH COAST COUNTIES PETERBUILT FOR THE PURCHASE OF A CATCH BASIN SEWER CLEANER IN AN AMOUNT NOT TO EXCEED $319,909 DISCUSSION (cont'dh As part of the FY 2012/13 Operating Budget, $320,000 is allocated in the Equipment Replacement Fund for purchase of a catch basin sewer cleaner. From this budget, approximately $150,000 is from Non -Point Source revenues. Approximately $170,000 is available from reallocation of vehicle replacement funds from vehicles that are no longer in service. There is approximately a $2,000,000 fund balance in the Equipment Replacement program account. The cost of this vehicle is $319,909, and will not jeopardize funds for future vehicle replacements for the Town's fleet and equipment. Purchasing Proposal The new catch basin sewer cleaner vehicle cost is based on a bid proposal from Coast Counties Peterbuilt, who prepared a bid for the City of San Jose. The City of San Jose bid documents contain language that allows other municipalities to purchase vehicles using their formal bid proposal documents. The bid proposal price is valid through November 10, 2012. Additionally, according to the Town's Purchasing Policy, the Town Manager is authorized to enter into cooperative purchasing agreements with other governmental entities without separate competitive bidding by the Town, if a governmental agency has solicited bids and awarded a contract for services or materials which the Town desires to obtain. The participation in such an agreement must be in agreement with the bidder who awarded the contract, and the Town Manager must determine that participation in such a group purchasing agreement is for the benefit of the Town. Alternative to Vehicle Replacement WVSD provides wastewater collection and disposal services for the Town of Los Gatos, as well as the cities of Campbell, Monte Sereno, portions of Saratoga, and some unincorporated areas within the County. WVSD's main responsibility is to provide ongoing maintenance of the cities' sanitary sewer system, including responding to sewer overflows during wet weather conditions within the hillside zones of the cities of Los Gatos and Saratoga. Given the size of the district's area of responsibility, the Town may not receive assistance during wet weather conditions due to the district's limited equipment capacity. If the Town contacts WVSD to provide additional services, it will be billed hourly or for overtime rates determined by the district. The purchase of this vehicle will allow staff to respond to storm sewer overflows during inclement weather conditions, and perform ongoing maintenance functions through -out the year, independent of WVSD. PAGE 4 OCTOBER 22, 2012 MAYOR AND TOWN COUNCIL SUBJECT: AUTHORIZE THE TOWN MANAGER TO EXECUTE AN AGREEMENT WITH COAST COUNTIES PETERBUILT FOR THE PURCHASE OF A CATCH BASIN SEWER CLEANER IN AN AMOUNT NOT TO EXCEED $319,909 CONCLUSION: Staff recommends that the Town Council authorize the Town Manager execute an agreement with Coast Counties Peterbuilt in the amount not to exceed $319,909. ENVIRONMENTAL ASSESSMENT: Purchase of a replacement catch basin sewer vehicle is not defined under CEQA, and no further action is required. FISCAL IMPACT: There are sufficient funds available in the Equipment Replacement Fund to purchase the catch basin sewer cleaner vehicle as described above.