sr-020811-3fCity Council Meeting: February 8, 2011
Agenda Item:
To: Mayor and City Council
From: Stephanie Negriff, Director of Transit Services
Subject: Cummins Natural Gas Engine Overhaul Services on Transit Buses
Recommended Action
Staff recommends that City Council authorize the City Manager to amend purchase
order No. 17635 to increase the annual amount and authorize complete allocation of
natural gas engine overhaul services provided by Cummins Cal Pacific from $200,000
to an amount not to exceed $500,000 annually for FY 2010-11 through FY 2012-13.
Executive Summary
Engine overhaul services are necessary as a normal part of wear-and tear throughout
the useful life of a transit coach. The Big Blue Bus has decided to increase the number
of engines being overhauled to help extend the life of the fleet. The engine overhauls
are necessary to keep buses from emitting harmful pollutants, maintain compliance with
California Air Resource Board rules and regulations, and keep buses operational. The
additional overhaul services total $500,000 per option year.
Background
On September 8, 2009, City Council awarded Bid No. 2978 to Cummins Cal Pacific and
Ironman Engine Renewal LLC. an annual estimated amount of $200,000 to provide
engine overhaul services on transit coaches powered by Cummins natural gas and bio-
diesel engines. The total estimated expenditure for the four-year term, FY 2009-10 to
FY 2012-13, is $800,000. The award was split 90% of anticipated work to Cummins Cal
Pacific to overhaul natural gas engines and 10% of anticipated work to Ironman
Renewal LLC. to overhaul Cummins bio-diesel engines.
Discussion
The natural gas engines being overhauled by Cummins Cal Pacific are six years old
and at the end of their useful life cycle of six years or 225,000 miles. As natural gas
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engines approach their useful life cycle, they wear and emit harmful carcinogenic
pollutants. To avoid this, it is necessary to overhaul engines before they wear out and
pollute the environment.
It is anticipated that in the current and subsequent option years, the quantity of engines
needing overhaul services will exceed Council award authority. Staff recommends
increasing the amount paid to Cummins Cal Pacific to $500,000 per option year.
Specifically, in FY 2010-11, Cummins Cal Pacific has overhauled nine natural gas
engines but an additional 12 engines need to be completed by the. end of the current
fiscal year. It is also projected that 21 engines will need to be overhauled in FY 2011-12
and FY 2012-13.
On September 2010, buses powered by Cummins bio-diesel engines were retired and
replaced with hybrid electric vehicles. Therefore, the need to split the award 90/10
between Cummins Cal Pacific and Ironman no longer. exists. Staff request that council
authorize complete allocation to Cummins Cal Pacific
Financial Impacts & Budget Actions
The new purchase order with Cummins Cal pacific will be $500,000 per option year.
Funds are available in account 0410106.589000, "Bus Component Replacement
Program."
Prepared by: Ralph Merced, Transit Maintenance Manager
Approved: Forwarded to Council
~`'rSt hanie Negriff Rod Gould
D ector of Transit Services City Manager
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