To: Mark R. Hafner, City Manager
From: Alonzo Liñán, Director of Public Works
Subject:
Title
Consider a resolution approving the purchase of a 2024 VacCon 390H combination vacuum and hydro excavation truck ahead of the Fiscal Year 2023-24 budget adoption from Houston Freightliner, of Houston, Texas through the HGACBuy Purchasing Cooperative and authorizing the City Manager to execute all related purchase documents on behalf of the City of Keller, Texas.
Action Requested:
Approve the purchase of a VacCon vacuum and hydro excavation truck ahead of the formal Fiscal Year 2023-24 budget adoption from Houston Freightliner, of Houston, Texas through the HGACBuy Purchasing Cooperative in the amount of $541,897.75.
Background:
The requested vacuum and hydroexcavation truck replaces a 2013 VacCon, which meets replacement criteria, including age, mileage, hours, and general cost of maintenance. The current VacCon has 47,556 miles, and 4,925 hours of usage, which is considered high for a vehicle of this type. Maintenance costs in the current year are approaching $16,000 as parts become more scarce. It is being requested ahead of Fiscal Year 2023-24 budget adoption as long lead times are estimated to delay final delivery of the new vehicle by 12-16 months.
The City created a Fleet Management Plan during Fiscal Year 2011-2012 to provide standards and improve consistency and efficiency in the management and procurement of City vehicles and equipment. The plan established a Fleet Management Committee made up of representatives from Public Works, Parks, Finance, Administration, Police, Fire, Utility Billing and Building Services to implement fleet policies and review vehicle and equipment requests during the annual budget process. The Fleet Management Plan is applicable to all on-road City vehicles and heavy equipment in excess of 2,500 pounds.
During the initial establishment of the Fleet Management Plan, it was determined that the small-vehicle fleet would be budgeted via account transfers from their applicable operating funds at the start of the program. This was not applied to heavy equipment and/or fleet purchases such as dump trucks, loaders, excavators, tractors, and/or other specialized equipment at the time due to the general expense of these types of items. The purchase of this vacuum and hydro excavation truck will continue the process of rolling these heavy equipment and/or fleet purchases into the Fleet Replacement Fund and will continue with the additional purchases of heavy equipment and/or fleet items in the future.
During the Fiscal Year 2023-24 budget process, all vehicle/equipment requests were submitted to the City Manager for review. Because of the type and size of these items, this vacuum and hydro excavation truck and any additional future heavy equipment purchases are not subject to the terms of the City’s fleet agreement with Enterprise Fleet Management for the small-vehicle fleet.
HGACBuy is a purchasing program that allows state and local governments to benefit from the shared purchasing power of numerous state entities. A detailed bid sheet for the requested dump truck is included with this memo as an exhibit.
Financial Impact:
The funding for this item will be included in the fiscal year 2023-24 Public Works - Water & Wastewater Utility Fund budget. The total amount budgeted for this equipment is $541,897.75 which is to be funded from the Fleet Replacement Fund with funds from the Water & Wastewater Utility Fund.
Citizen Input/Board Review:
Not Applicable
Legal Review:
Not Applicable
Alternatives:
City Council has the following alternatives:
- Approve as submitted
- Approve with changes
- Denial
Council Action:
Consideration of the resolution as presented in the amount of $541,897.75.