 |  | 5919 MAIN STREET . NEW PORT RICHEY, FL 34652 . 727.853.1016 |
| TO: | City of New Port Richey City Council | | FROM: | Robert M Rivera, Director of Public Works | | DATE: | 11/21/2017 | | RE: | Jet/Vacuum Sewer Cleaner Lease to Purchase – Sewer Collections Division |
REQUEST:
Attached for review and consideration by City Council is a Proposal from Atlantic Machinery, Inc. for the lease/purchase of 2018 Combination Jet/Vacuum Sewer Cleaner in the amount of $413,036.00. Atlantic Machinery is the vendor/contract holder for VAC-CON products. The unit pricing is in accordance with the current National Joint Powers Alliance (NJPA) contract 022014-AMI.
DISCUSSION:
This unit is replacing the City’s 2003 Combination Jet/Vacuum Sewer Cleaner that currently has 75,000 miles on it and 16,866 hours of pumping activity or a converted total mileage of 1,011,960. This equipment is used by the Sewer Collections Division to clean manholes and sanitary sewer pipe as well as clear blockages and sewer backups. In addition, the Stormwater Utility uses this piece of equipment to perform similar activities within the City’s Stormwater System to meet the mandates required in the City’s current National Pollutant Discharge Elimination System (NPDES) permit. Prior to the attached proposal, our Fleet Maintenance and Utility staff undertook a review of available combination jet/vacuum sewer cleaner equipment. Subsequent to that review, our staff has concluded that the VAC-CON equipment performed at the highest level and represents the best value for acquisition by the City.
The City’s Fleet Maintenance Supervisor has recommended this piece of equipment be placed into the repurposed category and transferred into the Stormwater Utility. While this equipment is no longer dependable for its primary use in sewer collections it still can serve a purpose in the stormwater utility field as well as reduce the wear and tear on the proposed new piece of equipment due to the continual use by both utilities as is the current status.
RECOMMENDATION:
The action requested of Council, is to approve the attached proposal from Atlantic Machinery, Inc. for the total amount of $413,036.00 as well as the attached five (5) year lease/purchase agreement option One (1) from Leasing 2, Inc. a member of the association of governmental leasing and finance. Five annual payments of $89,379.28 at 3.23% A.P.R.
BUDGET/FISCAL IMPACT:
Funds for the leasing/purchasing agreement for the first year have been placed into the Sewer Collections Division 113 Capital Equipment/Improvement Program account 401-0113-535-64-15. For the subsequent four years, funds will be budgeted in the Sewer Collections Division 113 operating budgets. | | | |