ORDER-2016-114 : Authorization to Execute Lease Agreement: five- year lease agreement with All American Investment Group, LLC for the purchase of a new 2015 Vactor Sewer Truck.

Transcript (~14 min @ 18:30)

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▶ 17:56 Gail Infurna: for public participation alderman Medeiros makes a motion to open for public participation seconded by alderman Boisselle all those in favor of public participation say aye aye aye all those opposed we're now public participation this is the opportunity if anybody's out there emotional clothes second see you none alderman uh alderman MacMaster margolis makes a motion to To close public participation, seconded by Alderman Boisselle. All those in favor of closing public participation, say aye. Aye. All those opposed? Public participation is now closed. We have two orders before us this evening. Order number 2016-114, the authorization to execute lease agreement. year lease agreement with all american investment group llc for the purchase of a new 2015 vector sewer truck motion to spend the rules to bring forward superintendent alderman mcintyre margolis making suspension of the rules actually they're actually already suspended for this evening so we'll forego that mr shenna good evening everyone good evening uh the first

▶ 19:16 Speaker 5: order that's before you is authorization to execute a lease agreement for the purchase of a new vac the truck for the sewer and drain division in the Public Works Department in the spring of 2015 the water and sewer committee unanimously recommended that a new budget line item in the amount of seventy-five thousand dollars be included in the FY 16 sewer operating budget and this board was nice enough to approve that as part of the FY 16 budget once the with the approval of that line item we moved forward to procure a new factor truck for the division the vehicle is used to maintain sewer and system sewer and drain systems on a daily basis most importantly it's used for emergency response to sewer blocks which if not handled correctly and in a

▶ 20:11 Speaker 5: timely manner will also will typically result in flooding and damage to private properties and overflows onto public ways and streets the department has expended in excess of $45,000 over the past fiscal years and maintaining this vehicle the vehicle is 20 years old several issues remain in terms of repair and in terms of maintenance and time will only increase the expenditures and are required in order to keep this vehicle operable most importantly to consider is that when this vehicle is out of service the department has to rely on vendors or mutual aid stoneman has been very nice to us in the past ditto Wakefield in regards to helping us out when this vehicle was is down but again we rely on the phone call to another community that communities phone call to their employees the truck arriving and that just delays the ability for us to respond and clear blockages if approved this vehicle is an inventory and she should arrive in Melrose no later than April 1st in regards to in regards to procurement competitive bids were obtained from three different vendors all on state contracts CN Wood out of Woburn was the lowest and most responsive bidder and the vehicle will be procured at CN Wood through the National Joint Powers Alliance and NJPA it's a cooperative bid that the Public Works Department and the school department are both members of so the intent is to maintain the line item in the sewer operating budget for the next five fiscal years it's in there right now in this fiscal year at seventy thousand it will reduce to sixty eight thousand one hundred and twenty eight dollars and eighty nine cents this is a way to replace a critical piece of aging equipment that's very that the department depends on greatly without any further impact moving forward into other fiscal years on the water and rate and on the bonds and the debt that bonds create and not that's that's a summary I've provided all the information I've provided the lease the membership documentation the specifications on the vehicles and the notes from the committee meeting in 2015 which I believe all the camera toes he took part and if you have any questions i'm gladly committee member oh actually another committee

▶ 23:13 Speaker 2: member so president khan so just so anybody watching at home understands what we're doing mr shed the purchase price on this is approximately 391 000 is that correct let me just double check

▶ 23:26 Speaker 2: yes that's correct and it's a five-year term and a five-year payout correct and can you explain what happens at the end of the five years does this vehicle uh does the city have ownership of

▶ 23:38 Speaker 5: the vehicle or is it turned in no it's correct the vehicle the the city will assume ownership

▶ 23:45 Speaker 2: of the vehicle at the end of the term and what is a ballpark for the useful life of a vehicle

▶ 23:51 Speaker 5: of this nature 15 to 20 years is um is the norm we got 20 years worth of out of our last vehicle with technology that is was significantly um has significantly improved since then so we fully

▶ 24:08 Speaker 2: expect to get 20 years out of the next one okay so in in the best of possible worlds which we're never in uh we could potentially roll this line item out of the sewer budget after this vehicle is paid off in five years is that correct correct and what kind of a warranty are we getting from

▶ 24:26 Speaker 5: this company in woolburn relative to this vehicle uh five years on both the vector which is the piece in the back and on the truck uh two different vendors the truck is a freight liner and the nearest freight liner dealership for maintenance is in everett and the vector is in movement so they're both local and we can um we can get immediate response if required so this way the vehicle stays and stays in in the fleet okay so you have warranty from both

▶ 24:58 Speaker 2: of those entities relative to the components of the vehicle correct are any of the local communities in this area partnering to share any kind of uh trucks or vehicles of this nature well we looked

▶ 25:08 Speaker 5: into it a little bit um but you always end up end up in that situation where is the truck going to be where's the truck going to be home based you could alternate weeks where you have the truck one week i have the truck another week unfortunately at this point in time we we made a decision that it was best to stay on our own in this regard again the ability to call somebody in get in the truck and respond to a sewer block is very critical and my opinion and that of many in my staff that's why we recommend it and eventually the administration agree that we

▶ 25:47 Speaker 2: should have our own and i understand that these folks were on the state contract procurement list do we have any history of prior dealings with these two companies this is this will be our

▶ 25:57 Speaker 5: first major project on the ngpa but um city solicitor rob van campen totally reviewed all of the documentation and was in full agreement that the purchase could move forward yeah no no

▶ 26:11 Speaker 2: my question is have we dealt with either of these companies before we've dealt with cn wood

▶ 26:16 Speaker 5: for several years and our existing truck is from cn wood okay and how has our relationship worked

▶ 26:25 Speaker 5: with them very good very good in fact two years ago when the truck was on its last leg we were able to negotiate some repairs that really kept the truck going for a couple of years when it didn't have the right to so they've been very good to us we've been their response time is excellent and they're they're the local vector distributor and vector is the truck that has been around in this regard for several years there are other manufacturers that we have we looked into but we spoke at lent with the mwra and mwa operations and fleet and they agreed to just stick with what works and stick what's been what has been around the longest which is vector which is why we decided to go on this road that's all i have for now thank you thank you very much

▶ 27:14 Gail Infurna: president khan and my apologies alderman Lemmerman go right ahead thank you very much

▶ 27:20 Jennifer L. Lemmerman: thank you mr shanna you mentioned a little bit about what the vector truck does could you give us a sense of how often it's out um being used and kind of the demand in the city for the services

▶ 27:30 Speaker 5: that it provides well there are certain things we do on a bi-weekly basis we check low areas in the sewer system before rain events we go out and check low areas in the drain system we clean bait clean catch basins seasonally we have a program we like to do a little program in the spring coming out of winter a little program in the fall take after the leaves fall and typically we we try to add a third program in the summer as well and then it's there for emergencies I would say the truck goes out at least three times three times a week on on a rotate pretty much a weekly basis from April to December okay thank you so it's

▶ 28:12 Jennifer L. Lemmerman: used for prevention and maintenance as well as prevention great and I just want to make sure that I'm understanding correctly what we're what we're looking at tonight so last budget cycle this board voted for for a line item on this which would essentially be like the down payment on this lease if I'm understanding and the hope and the plan is to continue to level fund that line item through the budget through the life of this lease but that would be determined in the in the budget process right and so tonight what we're talking about is is actually just authorizing the entering into of the lease is that

▶ 28:47 Speaker 5: that's correct well we're enter authorizing the agreement to be executed

▶ 28:52 Jennifer L. Lemmerman: by the administration okay great thank you very much that's all I have thank

▶ 28:55 Gail Infurna: you thank you very much Alderman McAteer-Margolis thank you madam chairman

▶ 29:02 Mary Beth McAteer-Margolis: so in regards to the $75,000 mr. Shenna that we appropriated last year is that definitely is that whole amount going towards this lease or did you have to

▶ 29:13 Speaker 5: use part of that for maintenance of the old truck no no we we use the repair line items in the budget for the maintenance these 75,000 in full is going as a down payment it's actually listed in the in the documents and in the lease agreement as a down payment so when we accept the truck within the next couple weeks hopefully upon successful passage the $75,000 down payment will be

▶ 29:36 Mary Beth McAteer-Margolis: made but we will then have a new payment that we will need to make for two

▶ 29:42 Speaker 5: thousand sixty eight thousand one twenty four for the next five years starting next fiscal year

▶ 29:47 Mary Beth McAteer-Margolis: right so um 68 times so we are in fact paying a little bit more than the purchase price if we were to just buy it outright but obviously we're yeah there's interest there's interest in the

▶ 29:56 Speaker 5: lease agreement okay we have to cover all right thank you very much i know i have personally

▶ 30:03 Mary Beth McAteer-Margolis: benefited from that vehicle in my neighborhood and have seen it used many times around town so So I do know it's highly important to have it, I think.

▶ 30:13 Gail Infurna: Thank you. All set, Alderman Medeiros.

▶ 30:15 Monica C. Medeiros: Thank you. Yes, and I just, I want to echo that. I know it's a very important piece of equipment that has really been a lifesaver for

▶ 30:26 Monica C. Medeiros: a lot of homeowners that have benefited during these bad flooding incidents. In particular, I just wanted to talk to the maintenance too. And you're going and using this piece of equipment on some of those culverts and drains that are in, say, in Ward 2 that we just, over the past several years, have done massive amounts of works and really have invested a lot of public tax dollars in infrastructure. And I believe this vehicle will help, has helped, and will help, well, current vehicle and the future vehicle will help maintain that investment that's absolutely correct

▶ 31:06 Speaker 5: it's a very good point i think you've heard me say that in the last few years we want to try to we've been shifting towards maintaining parks and grounds infrastructure water fire hydrants we've invested greatly as a community in building things and this truck will help us and will assist us in maintaining them moving forward and it's also going to assist in the in the ini initiative that you know I'm sure we'll speak of more in the upcoming months but this is the type of truck that will help us clear sewer lines and clean clean sewer manholes so that we can identify ground infiltration okay thank you and I plan

▶ 31:47 Gail Infurna: to support this thank you awesome and we have noncommittee member alderman one

▶ 31:52 Peter D. Mortimer: of them alderman lemon might ask my questions thank you okay everybody else

▶ 31:58 Gail Infurna: said any further discussion seeing none all those in favor okay motion to recommend again MacMaster Margolis makes a motion to recommend seconded by Alderman Boisselle seeing no further discussion all those in favor all those opposed that order will be recommended to the full board and Mr. Shenna feel free to try them to truck out in the hot spots of Ward 5 you know we're there we have our second order tonight is order number two zero one six dash one one six except the grant in the amount of six hundred and forty one thousand dollars from the executive office of housing and economic development mass works infrastructure program said funds to be deposited into fund number four zero one nine and once again we have mr. Shanna to speak on