[12) a. Adopt a Resolution Authorizing creation of a new Capital Improvement Project “Asphalt Zipper Reclaimer Acquisition”, and authorizing the City Manager or designee to purchase or finance a 48-inch Reclaimer/Stabilizer from Asphalt Zipper, Inc. in an amount not to exceed $300,000.00 plus possible finance costs; and Find that this action is not a project as defined under the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3), no environmental review is required. (Hurlbert)]

ACQUISITION AND AUTHORIZING THE CITY MANAGER, OR DESIGNEE TO PURCHASE OR FINANCE A 48 INCH RECLAIMER STABILIZER FROM ASPHALT ZIPPER, INC IN AN AMOUNT NOT TO EXCEED $300,000 PLUS POSSIBLE FINANCE COSTS, AND FIND THAT THIS ACTION IS NOT A PROJECT AS DEFINED UNDER CALIFORNIA ENVIRONMENTAL QUALITY STATE ACT GUIDELINES.

THEREFORE, PURSUANT TO STATE GUIDELINES SECTION 15060 C3, NO ENVIRONMENTAL REVIEW IS REQUIRED.

MISTER HURLBERT.

YES, HONORABLE MAYOR AND MEMBERS OF THE COUNCIL.

THAT'S A MOUTHFUL.

BUT IF YOU RECALL, A COUPLE OF MEETINGS AGO, WE SAW A SHORT VIDEO OF THE DEMONSTRATION OF THIS MACHINE JUST TO REMIND EVERYONE, THIS IS A PIECE OF EQUIPMENT THAT IS ACTUALLY ATTACHED TO THE FRONT OF A STANDARD LOADER, AND IT IS USED TO GRIND UP TO 12IN DEEP, 48IN WIDE, AT AT PER PASS OF EXISTING ROADWAYS, OR IN OUR CASE, SPECIFICALLY ALLEYS.

WE DID HAVE THE SUCCESSFUL DEMONSTRATION OF THE PRODUCT, AND IT SPARKED THE INTEREST IN WHETHER A MACHINE LIKE THIS WOULD ACTUALLY

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BE ECONOMICAL OR WOULD PAY FOR ITSELF.

SO OUR PUBLIC WORKS DEPARTMENT, OUR DEPUTY PUBLIC WORKS ENGINEER, DID A PRETTY EXHAUSTIVE ANALYSIS ON THIS AND COMPARED IT TO FOR CURRENT JOBS THAT WE'RE WORKING ON, INCLUDING THE ALLEY JOB.

WHAT WE FOUND WAS THAT THE MACHINE, BY ELIMINATING THE PART OF THE GRINDING AND HAUL OFF, WHICH IS THE TYPICAL PROCESS WHERE THE OLD ASPHALT IS REMOVED, THEN THE BASE IS REPAIRED, NEW AGGREGATE PERHAPS IS ADDED, AND THEN THE NEW PAVEMENT IS BROUGHT IN.

THAT EXTRA REMOVAL AND HAULING IN ADDITIONAL MATERIALS ARE ELIMINATED.

WITH THIS PROCESS.

THE OLD PAVEMENT IS GROUND RIGHT DOWN AND ADDED TO THE EXISTING BASE.

IF ADDITIONAL BASE IS NEEDED, IT'S ADDED THE THE ZIPPER CAN ACTUALLY DO THAT INTEGRATION AND THEN NEW PAVING GOES OVER THE TOP ONCE IT'S BEEN PROPERLY COMPACTED.

SO AGAIN WE ANALYZE THESE FOUR PROJECTS.

THE THE SUMMARY IS IN YOUR AGENDA PACKET, AS WELL AS THE SPREADSHEET WHERE THE DIFFERENT ANALYSIS WAS DONE.

WE SHOWED THAT WE COULD SAVE UP TO 69% ON THAT PORTION OF THE PROJECT THE HAULING AND GRINDING PORTION OR REMOVAL, HAULING AND GRINDING. AND HERE'S THE BEST SUMMARY.

THIS PAGE HERE IN FRONT OF YOU SHOWS THE DIFFERENCE ON THAT TOP GRID.

YOU SEE, THE AVERAGE SAVINGS ACROSS THE FOUR PROJECTS WAS 69% FOR THAT THE COST USING THE ZIPPER AND DROVE THE COST PER SQUARE FOOT WAY DOWN BELOW MARKET RATES.

THE DEVICE IS I MEAN, I WANT TO WHEN A COMPANY SAYS THAT THEIR DEVICE IS EASY TO USE, THAT'S AN UNDERSTATEMENT.

HERE. AS I POINTED OUT IN THE STAFF REPORT, THE THE PIECE OF EQUIPMENT WAS BROUGHT HERE TO TOWN.

OUR TWO OPERATORS FROM OUR EXISTING STAFF WERE INTRODUCED TO IT FOR THE VERY FIRST TIME.

THERE WAS A QUICK OVERVIEW, A SAFETY TRAINING.

THEY JUMPED ON THE EQUIPMENT AND AND RAN IT AND COMPLETED THE JOB, INCLUDING THE STOPPING AND LOOKING AT IT AND TALKING ABOUT IT AND REDOING SOME SECTIONS JUST FOR PRACTICE IN UNDER FOUR HOURS, 500FT OF VALLEY.

SO AS I POINTED OUT IN THE REPORT, STAFF WAS POSITIVE THEY COULD DO IT IN LESS THAN HALF OF THAT TIME ONCE THEY GOT A LITTLE MORE PRACTICE.

SO IT SEEMS CLEAR JUST IN THESE FOUR JOBS THAT THE SAVINGS WAS OVER $100,000 AND THE $300,000 PRICE TAG ON THE DEVICE SEEMS LIKE IT WOULD BE PAID BACK IN A YEAR OR MAYBE TWO WITH JUST NOMINAL USE, EVEN WITH REDUCED USE, CERTAINLY DURING THE THIRD YEAR OF OWNERSHIP.

INTERESTINGLY, THE ANALYSIS OF THE WORK WENT ON AND I ASKED THEM TO INCLUDE, WELL, WHAT IF WE ALSO DUST OFF OUR PAVER THAT THE CITY ALREADY OWNS? AND WE DID THE PAVING PART.

THAT RESULTED IN ONLY AN ADDITIONAL 2.5% OF SAVINGS NOT WORTH THE THE RISK OR THE THE ENCUMBRANCE OF OUR STAFF TO DO THAT KIND OF WORK, AT LEAST NOT AT THIS POINT.

SO ON THIS SHEET AGAIN, THAT'S ON YOUR SCREEN.

WE SHOW IT'S A LITTLE CONFUSING, BUT I CAN SIMPLIFY IT.

THE RED NUMBERS MEAN HOW MUCH MONEY DO WE STILL OWE TO THE AMORTIZATION OF THE PIECE OF EQUIPMENT.

AND THEN FOR EACH YEAR OF OWNERSHIP, WHAT IS THE ACCUMULATED SAVINGS? ASSUMING THAT THESE MODELS PROVE TRUE.

AND AS YOU CAN SEE ON THE BOTTOM LINE, THE HIGHLIGHTED, IF WE PAY FOR IT CASH, WE SAVE 392, 392,000 AND CHANGE.

IF WE FINANCE IT, THE COST OF THE FINANCING IS ABOUT 30, A LITTLE UNDER $30,000.

WE WOULD STILL SAVE 366,000 AND NEARLY 367.

SO OUR FINANCE DIRECTOR IS NOT HERE WITH US TONIGHT, BUT WE HAVE DONE SOME ANALYSIS THERE.

THE CURRENT RATES THAT WE'RE WE ARE EARNING ON THE PAYMENT THAT WE GOT FROM HIGH SPEED RAIL, WHICH IS PAYING FOR THREE OF THESE FOUR JOBS, IS EARNING 4.75% APPROXIMATELY THE CURRENT

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FINANCE RATE FOR THIS PIECE OF EQUIPMENT IS 5.9, AND THERE ARE NO PAYMENTS DUE THE FIRST YEAR OF OWNERSHIP.

YOU DON'T OWE THE FIRST PAYMENT UNTIL THE END OF THE FIRST YEAR.

SO WHAT I'M PRESENTING TONIGHT IS THAT IT'S IT'S A CLOSE CALL.

THE TIME VALUE OF MONEY MAY DICTATE THAT FINANCING IS ACTUALLY A SMARTER THING FOR US TO DO.

ONCE WE DO GET FINAL QUOTES ON THE FINANCING COST, AND ESPECIALLY IN LIGHT OF THE POLICE DEPARTMENT'S START UP AND THE OTHER EXPENSES THAT WE HAVE COMING OUR WAY THAT WE KNOW ABOUT AND THOSE THAT WE DON'T, IT MAY MAKE MORE SENSE TO CONSERVE OUR CASH WHILE IT'S STILL EARNING THAT LEVEL OF REVENUE AND JUST PAY IT OFF OVER THE SIX YEAR PERIOD.

SO WHAT I'M REQUESTING TONIGHT IS ANY QUESTIONS DISCUSSION ABOUT THE MERIT OF LOOKING AT THIS.

MY RECOMMENDATION WOULD BE TO ACQUIRE THE PIECE OF EQUIPMENT.

I THINK THAT IT WILL CERTAINLY PAY FOR ITSELF IN NO TIME.

AND IT COULD PUT US IN A POSITION ONCE WE GET VERY GOOD AT IT, WHERE WE MIGHT HAVE THE NICEST ALLEYS IN THE IN THE COUNTY.

AFTER A FEW YEARS OF USING THIS THING, BECAUSE I THINK WE CAN GET A LOT MORE ALLEY WORK DONE PER YEAR THAN WE'RE DOING NOW.

BUT I'D LIKE THE FLEXIBILITY TO MAKE A FINAL DETERMINATION ON THE FINANCE VERSUS CASH PURCHASE AS PART OF YOUR APPROVAL TONIGHT, AND YOU'RE PART OF THE RESOLUTION THAT WOULD ALLOW US TO FURTHER ANALYZE THAT DECISION AND GO WHICHEVER WAY IT TURNS OUT TO BE BEST.

SO THERE ARE QUESTIONS HAPPY TO ADDRESS THOSE.

ARE THERE ANY PUBLIC COMMENTS AT THIS TIME? SEEING NONE I THINK IT'S A GREAT IDEA AND I'M OKAY WITH YOU MAKING THE DECISION WHEN THE TIME COMES AS TO WHETHER OR NOT WE FINANCE IT OR PAY IT ALL IN CASH. OKAY.

MAYOR PRO TEM GARCIA, I'M PRETTY MUCH ON THE SAME BOAT.

MAKES SENSE. OKAY.

MEMBER MEDINA.

DO WE HAVE A TARGET AS TO HOW MANY ALLEYS WE WOULD DO? I DO NOT, ALL OF THEM EVENTUALLY.

THE LIFE EXPECTANCY ON THIS PIECE OF EQUIPMENT IS CERTAINLY TEN YEARS OR MORE.

AND IT CAN BE REBUILT.

THE THE BREAKABLE PART OF THE MACHINERY OR THE BITS THAT ACTUALLY DO THE GRINDING.

AND THAT'S ONE THING I FAILED TO TO REINFORCE FROM THE STAFF REPORT.

IF WE APPROVE THIS PURCHASE BEFORE THE END OF THIS YEAR, WE CAN LOCK IN THE 2023 PRICES ON THE GENERATION SEVEN PIECE OF EQUIPMENT. AND WE GET AS PART OF THAT PROMOTIONAL PACKAGE THAT THEY HAVE, WE GET AN ADDITIONAL YEAR OF WARRANTY, DOUBLE THE WARRANTY AND A FULL SET OF REPLACEMENT BITS, WHICH IS WORTH ABOUT $3,000.

AND BECAUSE IT WON'T BE DELIVERED UNTIL EARLY SPRING, WE GET NEXT YEAR'S MODEL AT THAT PRICE.

SO WE WILL GET THE GENERATION EIGHT.

AND I INCLUDED IN YOUR PACKET WAS A COMPARISON OF THE GENERATION SEVEN AND GENERATION EIGHT.

SO YES, I THINK, YOU KNOW, BASED ON THE AMOUNT OF TIME IT TAKES TO DO THE WORK, I THINK THE FUNDING FOR THE PAVING PART OF IT WILL BE OUR CONSTRAINT, NOT THE ABILITY TO GO AND RECONDITION ALLEYS.

SO I THINK WE CAN DEFINITELY CUT TIME OFF OF THE PROCESS AND WE CAN GET A LOT MORE ALLEYS PER YEAR REBUILT, WHICH IS BADLY NEEDED, WE ALL KNOW.

OKAY.

MEMBER REYNA.

THANK YOU MAYOR. YOU KNOW, ABSOLUTELY YES.

RIGHT. WE NEED THAT A PIECE OF EQUIPMENT.

YOU'VE SPOKEN ABOUT IT, YOU'VE TRIED IT.

AND IT'S AN EXCELLENT TOOL FOR US TO DO THE ALLEYS.

IT WAS UNCLEAR TO ME ABOUT THE VERSION SEVEN, VERSION EIGHT.

I READ ABOUT IT, AND YOU MADE IT CLEAR NOW THAT WE WILL GET THE SEVENTH OR EIGHTH EDITION OF IT, BECAUSE IT IS A MUCH, MUCH BETTER PIECE OF EQUIPMENT. IT HAS A LOT MORE ADVANTAGES TO IT THAN THE VERSION SEVEN.

AND SO I'M VERY HAPPY ABOUT THAT.

THE ONLY QUESTION I WOULD HAVE AND AGAIN, I THINK YOU CAN DECIDE ON THAT IS, YOU KNOW, WHAT WE'RE EARNING NOW IN INTEREST MAY NOT BE WHAT WE'RE EARNING IN INTEREST A FEW MONTHS DOWN THE ROAD.

EXACTLY. AND SO THAT'S SOMETHING THAT, YOU KNOW, YOU DON'T HAVE A CRYSTAL BALL TO BE ABLE TO SAY, OKAY, THIS IS THE PERFECT THING TO DO.

AND I WOULD JUST CAUTION YOU ABOUT THAT BECAUSE AND AGAIN, WE ARE HAVING EXPENSES WITH OUR POLICE DEPARTMENT.

I LOVE THE IDEA THAT YOU'RE BEING VERY CAUTIOUS ABOUT IT AND TRYING TO SAVE THAT MONEY.

ULTIMATELY, AT THE END, THE SAVINGS, THE DIFFERENCE BETWEEN ONE AND THE OTHER IS IT CURRENTLY STANDS IS NOT THAT MUCH.

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BUT THAT MAY CHANGE, RIGHT? THAT MAY CHANGE IF THE INTEREST RATES ARE NOT PAYING AS MUCH AS WE'RE GETTING PAID NOW.

AND I THINK THAT ONE OF THE THINGS THAT WE'LL BE DISCUSSING WITH THE VENDOR IS THE ABILITY TO HAVE AN EARLY PAY OFF OPTION SO THAT WE DON'T HAVE TO SUFFER THROUGH AN EXTENDED PERIOD OF THAT.

WE WOULD PROBABLY STILL OWE SOME SORT OF MINIMUM FINANCE CHARGE JUST FOR USING THE MONEY FOR THAT YEAR, BUT THAT'S AT LEAST MY INITIAL THOUGHT ABOUT PROTECTING THE CITY FROM THAT DOWNSIDE.

LET'S SAY THE MONEY FUND THAT WE'RE INVESTED IN CLASS, THE CALIFORNIA CLASS IS WHERE WE HAVE THAT MONEY CURRENTLY.

IF IT DROPPED TO 3% OR 2%, THEN IT WOULD MAKE SENSE TO USE THAT CAPITAL AND PAY THAT OFF.

VERY GOOD. THAT SATISFIES MY, YOU KNOW, MY CONCERN.

I THINK THAT THAT WOULD BE PERFECT.

YEAH, I'M FOR IT.

ABSOLUTELY. MEMBER SALDANA.

I HAVE NO QUESTIONS. I JUST SUPPORT PRETTY MUCH A LOT OF THESE QUESTIONS WERE ALREADY ASKED.

YOU KNOW, I SUPPORT THE IDEA.

I MEAN, WHICHEVER WAY YOU GUYS GO, I SUPPORT YOU TO WHICHEVER WAY YOU WANT TO GO.

I APPRECIATE IT. OKAY.

I'D LIKE TO ENTERTAIN A MOTION FOR APPROVAL.

MOVE TO APPROVE MAYOR. SECOND.

BEFORE WE CONTINUE, JUST WANTED TO MAKE SURE THAT WE'RE APPROVING THE FINANCING PART.

YEAH. FINANCING THE EQUIPMENT OR PAYING IT ALL IN FULL.

MOVING TO MAKE HIM ALLOW HIM TO MAKE THE DECISION.

OKAY. THE RESOLUTION SPECIFIES BOTH OPTIONS.

GOT IT. OKAY, SO WE HAVE A MOTION FOR APPROVAL.

SECOND. SECONDED. OH, THERE YOU GO.

OKAY. SECONDED.

MADAM CLERK, CAN WE HAVE THE VOTE BY ROLL CALL? MOTION BY COUNCIL MEMBER REYNA.

SECONDED BY COUNCIL MEMBER MEDINA TO ADOPT THE RESOLUTION.

MOTION IS UNANIMOUSLY APPROVED.

[12) b. Discussion and Possible Minute Action Authorizing the City Manager to proceed with requesting bids for an On-Call Towing Services to be utilized on a rotation schedule for the Wasco Police Department. (Hurlbert) ]

MOVING ON TO ITEM B, DISCUSSION AND POSSIBLE MINUTE ACTION AUTHORIZING THE CITY MANAGER TO PROCEED WITH REQUESTING BIDS FOR AN ON CALL TOWING SERVICE TO BE UTILIZED ON A ROTATION SCHEDULE FOR THE WASCO POLICE DEPARTMENT.

MR. HURLBERT. YES.

HONORABLE MAYOR AND MEMBERS OF THE COUNCIL.

ONE OF THE CHALLENGES FOR MANY CITIES IS THE RELATIONSHIP BETWEEN THE POLICE DEPARTMENT AND THE TOWING COMPANIES.

THERE ARE OFTEN CHALLENGES WITH THAT.

AND SO THE CHIEF AND I HAVE BEEN DISCUSSING THIS, AND WE'D LIKE TO GET OUT AHEAD OF THAT.

OUR PROPOSAL IS TO CREATE A ROTATION POLICY WHERE WE GO BETWEEN A NUMBER OF COMPANIES.

IT'S NOT PROVEN TO BE A SMART STRATEGY TO HAVE JUST A MONOPOLISTIC CONTRACT WITH ONE TOWING COMPANY, OR TWO FOR THAT MATTER.

IT'S BETTER TO HAVE THAT AS OPEN AS POSSIBLE.

IT REDUCES THE OPPORTUNITY FOR PROBLEMS BETWEEN THE COMPANIES OR BETWEEN THE CITY AND THE COMPANIES.

SO OUR OUR APPROACH, OUR PROPOSED APPROACH IS TO ESTABLISH WHAT WE WOULD LIKE TO SEE AS FAR AS A ROTATION METHODOLOGY AND POLICY, AND THEN GO OUT WITH THAT BEING PART OF THE PROPOSAL PACKAGE TO SAY, OKAY, TOWING COMPANIES A THROUGH Z, ARE YOU INTERESTED IN BEING ON THIS ROTATION, SUBJECT TO THE TERMS THAT THE CITY HAS DEFINED RATHER THAN THE OTHER WAY AROUND, OF GETTING TEN DIVERSE KINDS OF PROPOSALS AND THEN HAVING TO COME UP WITH ONE POLICY THAT EVERYBODY AGREES TO, WE'LL JUST SET THE POLICY AHEAD OF TIME.

SO HOW WELL THAT WILL WORK OUT REMAINS TO BE SEEN.