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SR-205-003 (611) Purch:DH:RAH: F:\FINANCE\PURCH\STFRPTS\SRBD2878.DOC Council Meeting: November 9, 2004 Santa Monica, California TO: Mayor and City Council FROM: City Staff SUBJECT: Award Bid to Furnish and Deliver Two Truck Tractors, Bid #2878 Introduction This report recommends award of bid to furnish and deliver two truck tractors for the Solid Waste Management Division, Environmental & Public Works Management Department, in the total amount of $224,030.35, including applicable sales tax, funded by contributions from the Solid Waste Fund to the Vehicle Replacement Program. Background The diesel powered truck tractors will be used by Solid Waste Management personnel to pull 45-foot semi-trailers to various landfills. They will replace two tractors (a 1992 and a 1994) which are no longer cost effective to maintain and are part of the Vehicle Replacement Program. Discussion In June 2004, the City published Notices Inviting Bids to furnish and deliver two truck tractors in accordance with City specifications. Bids were received and publicly opened and read on July 27, 2004. Bid forms were sent to thirty-four vendors and notices were advertised in accordance with City Charter and Municipal Code provisions. Three bids 1 were received as follows: VENDOR AMOUNT FUEL SOURCE TEC of California, Inc. (Bid# 1) $185,608.52 Diesel Powered Boerner Truck Center $224,030.35 Diesel Powered TEC of California, Inc. (Bid# 2) $351,416.43 CNG Powered TEC of California, Inc. offered diesel powered truck tractors which do not meet City specifications. The cab is too small, they weigh 1500 lbs over the specification limit, and do not meet the City’s reduced emissions fuel policy. There are no plans in the immediate future to have the Mack engines certified for retrofit to CNG or dual-fuel. TEC of California, Inc. also offered two Compressed Natural Gas (CNG) powered truck tractors but they do not have the specified torque and horsepower that is required to pull the heavy semi-trailers to the landfills. The weight of the vehicles is almost 4,000 lbs over the specifications, which limits the load that can be hauled and requires more trips to be made to the landfills. In addition, the cab does not meet the specification of being a conventional design with the engine housed in front of the cab. Instead, it is a cab over engine design, which is a much smaller cab that is much less comfortable for the driver who sits in the cab for almost all of his/her workday. Boerner Truck Center offered truck tractors with a Caterpillar diesel engine that was previously certified to run on dual-fuel (diesel/CNG). Currently there are no CNG tractor engines available that will pull this load. These vehicles were bid in 2002 and no 2 suitable engine was available at that time either.The Caterpillar engine has the potential to be retrofitted to dual-fuel in the future, pending California Air Resources Board (CARB) certification. If the engine becomes certified the City may convert it to dual-fuel at a future date and additional cost. Staff has evaluated the bid submitted by Boerner Truck Center for two diesel powered truck tractors and finds that they meet City specifications, considering there are no CNG tractor engines available to pull such heavy loads. There is no CARB approved conversion kit available for the truck tractors at this time, and there is no estimate of when a CARB approved conversion kit will be available to convert the truck tractors to CNG. Budget/Financial Impact Budget authority for this purchase is in the Capital Improvement Budget account number C540167.589100, “Fleet Vehicles Replacement Program”. Recommendation It is recommended that the award of Bid #2878 be made to Boerner Truck Center as the best bidder, in the total amount of $224,030.35, including applicable sales tax. Prepared By: Rick Sikes, Fleet Superintendent Diane Howell, Purchasing Agent Richard Chiu, Buyer 3