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Home My WebLink About07-23-24 EO&WR Committee Packet 1 OTAY WATER DISTRICT ENGINEERING, OPERATIONS, & WATER RESOURCES COMMITTEE MEETING and SPECIAL MEETING OF THE BOARD OF DIRECTORS 2554 SWEETWATER SPRINGS BOULEVARD SPRING VALLEY, CALIFORNIA BOARDROOM TUESDAY JULY 23, 2024 12:00 P.M. This is a District Committee meeting. This meeting is being posted as a special meeting in order to comply with the Brown Act (Government Code Section §54954.2) in the event that a quorum of the Board is present. Items will be deliberated, however, no formal board actions will be taken at this meeting. The committee makes recommendations to the full Board for its consideration and formal action. AGENDA 1. ROLL CALL 2. PUBLIC PARTICIPATION – OPPORTUNITY FOR MEMBERS OF THE PUBLIC TO SPEAK TO THE BOARD ON ANY SUBJECT MATTER WITHIN THE BOARD’S JU- RISDICTION INCLUDING AN ITEM ON TODAY’S AGENDA. DISCUSSION ITEMS 3. AUTHORIZE THE GENERAL MANAGER TO ISSUE PURCHASE ORDERS OF UP TO THE BUDGETED AMOUNT, AND ANY INFLATION ADJUSTMENTS IN ADDITION TO THE BUDGETED AMOUNTS, WHEN PRICING FOR VEHICLES AND EQUIPMENT ARE AVAILABLE FOR THE PURCHASE OF SIX (6) FLEET VEHICLES, INCREASE CIP P2282 BY AN ADDITIONAL $200,000 FOR THE PURCHASE OF ONE (1) HY- DRO-EXCAVATOR, ONE (1) BACKHOE, AND ONE (1) EMERGENCY STAND-BY GENERATOR, FOR AN OVERALL AMOUNT OF $1,360,000 (CHARLES MEDEROS) [5 MINUTES] RECESS TO CLOSED SESSION 4. CLOSED SESSION a) CONFEFENCE WITH REAL PROPERTY NEGOTIATORS Pursuant to Califor- nia Government Code §54956.8 Property: SALT CREEK GOLF COURSE 525 HUNTE PARKWAY CHULA VISTA, CA 91914 Agency Negotiator: General Counsel Under Negotiation: Disposition of Property 2 RETURN TO OPEN SESSION 5. REPORT ON ANY ACTIONS TAKEN IN CLOSED SESSION. THE BOARD MAY ALSO TAKE ACTION ON ANY ITEMS POSTED IN CLOSED SESSION. 6. ADJOURNMENT BOARD MEMBERS ATTENDING: Mark Robak, Chair Ryan Keyes All items appearing on this agenda, whether or not expressly listed for action, may be de- liberated and may be subject to action by the Board. The agenda, and any attachments containing written information, are available at the Dis- trict’s website at www.otaywater.gov. Written changes to any items to be considered at the open meeting, or to any attachments, will be posted on the District’s website. Copies of the agenda and all attachments are also available by contacting the District Secretary at (619) 670-2253. If you have any disability which would require accommodation in order to enable you to participate in this meeting, please call the District Secretary at 619-670-2253 at least 24 hours prior to the meeting. Certification of Posting I certify that on July 19, 2024, I posted a copy of the foregoing agenda near the reg- ular meeting place of the Board of Directors of Otay Water District, said time being at least 24 hours in advance of the meeting of the Board of Directors (Government Code Section §54954.2). Executed at Spring Valley, California on July 19, 2024. /s/ Tita Ramos-Krogman, District Secretary STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: August 7, 2024 SUBMITTED BY: Charles Mederos, Utility Services Manager PROJECTS: P2282, P2286, P2688 DIV.NO. ALL APPROVED BY: Andrew Jackson, Chief of Water Operations Jose Martinez, General Manager SUBJECT: AUTHORIZE THE PURCHASE OF SIX FLEET VEHICLES, APPROVAL TO INCREASE CIP P2282 AN ADDITIONAL $200,000.00 FOR THE PURCHASE OF A HYDRO-EXCAVATOR WHEN PRICE AND UNIT IS AVAILABLE, ONE BACKHOE, ONE EMERGENCY STAND-BY GENERATOR, AND TO DECLARE AS SURPLUS UNITS #3476 AND #212, AND ONE GENSET. GENERAL MANAGER’S RECOMMENDATION: That the Board authorize the General Manager to issue purchase orders of up to the budgeted amount, and any inflation adjustments in addition to the budgeted amounts, when pricing for vehicles and equipment are available for the purchase of six fleet vehicles, increase CIP (Capital Improvement Project) P2282 by an additional $200,000.00 for the purchase of a Hydro-Excavator, one backhoe, and one emergency stand-by generator, as described below, in an overall amount of $1,360,000.00: •Three (3) E-Transit Vans, up to the budgeted amount of two (2) at $66,500.00 each and one (1) with a platform bed at$70,000.00, for a total amount of $203,000.00. •Two (2) Ford F-150, half-ton Pick-Up trucks, up to thebudgeted amount of $55,000.00 each for a total amount of$110,000.00. AGENDA ITEM 3 2 • One (1) Hydro-Excavator, Class 7 with automatic transmission of up to the increased budgeted amount of $801,000.00. • One (1) Backhoe up to budgeted amount of $170,000.00. • One (1) Emergency Stand-by Generator up to the budgeted amount of $76,000.00. Staff also recommends to surplus the following Units: #3476 a John Deere Backhoe, #212 a Hydro-Excavator, and one Emergency Standby Generator. COMMITTEE ACTION: See “Attachment A.” PURPOSE: To obtain Board authorization to purchase six fleet vehicles, one backhoe, and one emergency standby generator of up to the budgeted amounts and, if applicable, include any inflation adjustments, and increase CIP P2282 by an additional $200,000.00, for FY25 or when vehicles and equipment are available for purchase. Staff also recommends to surplus Units #3476 backhoe, #212 Hydro-Excavator, and one Emergency Standby Generator. ANALYSIS: There are six vehicles, one backhoe, and one emergency standby generator included for purchase in the approved FY25 budget. The window of opportunity to place orders for these vehicles is extremely narrow due to pent-up demand for fleet vehicles. For instance, during FY22, a class 7 commercial utility truck was ordered with a purchase order dated March 15, 2022, and was delivered in March 2024 (FY24). During FY23, two dump trucks, class 8 and 7 were ordered with purchase orders dated December 15, 2022, and delivered in January and February of 2024 (FY24). In addition, there was one Ford F-550 purchased in FY23 with a purchase order dated January 9, 2023, and was delivered in May 2024, one Class 7 Utility Truck and Class 5 Dump Truck purchased in FY24 with a purchase order dated December 22, 2023. The Class 5 Dump Truck was delivered in June 2024 and the class 7 Utility truck has a tentative delivery date of early FY25. This lead time is due to the high demand and short supply of these types of vehicles coupled with the California Air Resources Board (CARB) Clean Fleets Regulation that took effect January 2024. If the District waits to place orders until pricing becomes available later this calendar year and then 3 seek Board authorization, the District could be locked out of the opportunity to purchase during calendar year 2024 and will be subject to potentially higher costs due to inflation. As a remedy to this situation, staff plans to purchase the vehicles and equipment through Sourcewell’s Cooperative Agreements: 1) either with National Auto Fleet Group (NAFG) or 2) body equipment companies that are specialized in building certain vehicles, such as the hydro-excavator truck. It should be noted that certain commercial manufacturers allocate their production to the region then ultimately to local dealers. Thus, it is important for the District to issue a purchase order to the dealer(s) as soon as possible to get a build slot reserved. It is also important to note that in FY24, staff requested the Board to authorize the General Manager to issue purchase orders as fleet vehicles were made available and was able to secure these purchases and reserve a build slot for those fleet vehicles under production, therefore, avoiding extended lead times due to the short supply. Note: Cooperative/Joint Purchases are authorized under Section 6.2.3 of the Purchasing Manual. These purchases are exempt from the District’s competitive solicitation requirements so long as the contracts, schedules, and agreements are solicited in a manner consistent with the District’s purchasing policies. Sourcewell is a State of Minnesota’s local government unit and service cooperative created under the laws of the State of Minnesota that offers cooperative procurement solutions to government entities. Based on the aforementioned reasons, it is imperative to seek pre-authorization from the Board to secure the purchases of the vehicles, backhoe, and emergency standby generator as soon as possible. The requested six vehicles, backhoe, and generator will replace the units and equipment as described below (Attachment B). • Unit #185 (2008 Ford F250 – 84,003 miles). This vehicle is 16 years old and in need of replacement. This truck is equipped with a utility body and was assigned to an Electrician and replaced in FY23 with an E-Transit Van but held back and assigned to a Pump Mechanic. It is utilized to perform preventive and corrective maintenance on District assets. It will be replaced with an E-Transit (electric) Ford Van since it falls under the State Advanced Clean Fleet Regulation. • Unit #189 (2008 Ford F250 Pickup truck – 124,696 miles). This vehicle is assigned to Facility Maintenance, is 16 years old, and in need of replacement. It will be replaced with an E- 4 Transit Ford Van since it falls under the State Advanced Clean Fleet Regulation. • Unit #198 (2007 Ford F350 equipped with a flatbed – 64,417 miles). This vehicle is assigned to Utility Maintenance and is 17 years old and in need of replacement. It is utilized to carry supplies and perform traffic control and it is powered by a 6.0-liter diesel engine. It will be replaced with an E- Transit platform Ford Van in a cab and chassis configuration and outfitted with a flatbed for traffic control. Unit #198 also falls under the State Advanced Clean Fleet Regulation. • Unit #212 (2012 International/Vactor Hydro-Excavator Utility Maintenance – 46,972 miles). This vehicle is 12 years old and in need of replacement. The Hydro-Excavator is used to assist during excavations using high-pressure water and a powerful vacuum to break up the soil and immediately remove it by placing it in the unit's debris tank. The replacement of this unit was authorized by the Board at the Board meeting held on August 2, 2023, with a budgeted amount of $410,000.00. However, by the time staff was ready to issue a purchase order, the price was higher and continued to increase due to high demand and inflation costs. For this reason, staff is requesting to increase CIP P2282 by an additional $200,000.00 and execute a purchase order as soon as unit and pricing becomes available. This Hydro-excavator falls under the State Advanced Clean Fleet Regulation, but it will be offset by the early Zero Emissions Vehicle (ZEV) purchases/credits made in calendar year 2023. • Unit #226 (2017 Ford F150 – 83,916 miles). This vehicle is seven years old and in need of replacement. It is assigned to Water Systems section to monitor and operate the water distribution system. This vehicle travels more than 10,000 miles annually and it will be replaced in kind. • Unit #234 (2018 Ford F150 – 83,809 miles). This vehicle is six years old and in need of replacement. It is assigned to Water Systems section to monitor and operate the water distribution system. This vehicle travels more than 10,000 miles annually and is expected to have 100,000 miles at the time of replacement. It will be replaced in kind. • Unit #3476 (1999 John Deere Backhoe). The backhoe is 25 years old, powered by a Tier 1 emissions level diesel engine and in need of replacement. The backhoe is used by Utility Maintenance during replacements and repairs of service laterals and mains. The backhoe will be replaced in kind but with the latest emissions available in anticipation of the California Air Resources Board (CARB) phasing out Tier 1 emissions level. 5 • The 1200-1 Pump Station Emergency Standby Generator is a 1990 175Kw Tier zero emissions level with a single wall diesel fuel belly tank. The fuel tank is beginning to show signs of rust and needs replacement. It will be replaced in kind with Tier III emission level with a double contained diesel fuel tank. Since the District requires reliable equipment and vehicles for emergency response with the capacity to perform repairs in a timely manner, staff requests to obtain Board authorization to procure and purchase their replacements to maintain critical water and sewer services. Based on the system operation evaluation of workflow and the current market uncertainty of vehicle stock and CARB regulation, staff recommends that the Board to authorize the General Manager to issue purchase orders to purchase the vehicles and equipment requested in this report. FISCAL IMPACT: Joe Beachem, Chief Financial Officer The total budgeted cost for the six vehicles is $914,000.00, plus an additional request to increase CIP P2282 by $200,000.00 for a total cost of $1,114,000.00 which will be charged against the Vehicle Capital Purchases CIP P2282. The total budgeted cost for the backhoe is $170,000.00, which will be charged against the Field Equipment Capital Purchases CIP P2286. The total budgeted cost for the emergency standby generator is $76,000.00 which will be charged against the Standby Power Renovations – Potable Water Capital Purchases CIP P2688. The Finance Department has determined that 100 percent of the funds are available to cover the cost of the Capital Purchases. STRATEGIC GOAL: Operate the system to meet demand 24 hours a day, seven days a week. LEGAL IMPACT: None. Attachments: Attachment A – Committee Action Attachment B – Photos of Vehicles ATTACHMENT A SUBJECT/PROJECT: AUTHORIZE THE PURCHASE OF SIX FLEET VEHICLES, APROVAL TO INCREASE CIP P2282 AND ADDTIONAL $200,000.00 FOR THE PURCHASE OF A HYDRO-EXCVATOR WHEN UNIT AND PRICES BECOMES AVAILABLE, ONE BACKHOE, ONE EMERGENCY STAND-BY GENERATOR, AND TO DECLARE AS SURPLUS UNITS #3476 AND #212, AND ONE GENSET. COMMITTEE ACTION: The Engineering, Operations, and Water Resources Committee reviewed this item at a meeting held on July 23, 2024, and the following comments were made: NOTE: The “Committee Action” is written in anticipation of the Committee moving the item forward for board approval. This report will be sent to the Board as a committee approved item, or modified to reflect any discussion or changes as directed by the committee prior to presentation to the full board. ATTACHMENT B Unit 185, 2008 Ford F250 with 84,003 miles Unit 189, 2008 Ford F250 with 124,696 miles Unit 198, 2007 Ford F350 with 64,417 miles Unit 212, 2012 International Hydro-Excavator with 46,972 miles Unit 226, 2017 Ford F150 with 83,916 miles Unit 234, 2018 Ford F150 with 83,809 miles Unit 3476, 1999 John Deere Backhoe with 2652 hours Emergency Standby Generator 1200-1 Pump Station with 781 hours