sr-022211-3fCity Council Meeting: February 22, 2011
Agenda Item: ~
To: Mayor and City Council
From: Stephanie Negriff, Director of Transit Services
Subject: Detroit Diesel Engine Overhaul Services on Transit Buses
Recommended Action
Staff recommends that City. Council to increase the bid award amount of Bid #2977
awarded to Ironman Renewal LLC and Harbor Diesel & Equipment, California based
companies, to provide engine overhaul services on transit coaches powered by Detroit
Diesel 50 Series engines by $750,000 for the remaining two and a half years of the four
year agreement. This will result in a new bid award amount of $2,500,000 for the four
year term.
Executive Summary
Engine overhaul services are necessary as a normal part of wear and tear throughout
the useful life of a transit coach. Repairs and overhauls are necessary to keep from
emitting harmful pollutants, maintain compliance with California Air Resource Board
rules and regulations, and keep buses operational. The increase of $750,000 will bring
the total expenditure for the four-year term to $2,500,000.
Background
On September 8. 2009, City Council awarded Bid No. 2977 to Ironman Renewal and
Harbor Diesel and Equipment in an annual amount of $400,000 to provide engine
overhaul services on transit coaches powered by Detroit Diesel Series 50 engines. The
total expenditure for the four-year term, FY 2009-10 to FY 2012-13; was $1,600,000.
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The award was split between Ironman Renewal LLC. to overhaul bio-diesel engines and
Harbor Diesel & Equipment to overhaul natural gas powered engines.
On July 13, 2010, City Council amended Bid # 2977 for Detroit Diesel 50 Series engine
overhaul services on transit buses during FY 2009-10 from Ironman Renewal LLC, by
$150,000 as the quantity of diesel engines needing overhaul services exceeded the
projected number and anticipated cost.
Discussion
The diesel engines being overhauled by Ironman Renewal LLC. are 14 years old and
the natural gas engines being overhauled by Harbor Diesel & Equipment are nine years
old. All engines have exceeded their useful life cycle of six years or 350,000 miles. As
diesel and natural gas 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.
Originally, the Big Blue Bus had planned to re-power the Detroit Diesel natural gas
engines with 2010 model year Cummins natural gas engines. However, as part of a cost
saving measure staff has opted to overhaul the existing engines. Therefore, it is
anticipated that in FY 10-11 and in subsequent option years, the quantity of engines
needing overhaul services will exceed Council award authority.
Financial Impacts & Budget Actions
The increase of $750,000 for the remaining two and a half years of the four year term
will bring the new amount awarded to Ironman Renewal and Harbor Diesel & Equipment
to $2,500,000 and Ironman Renewal LLC. and Harbor Diesel purchase orders will split
awarded amount of $750,000 annually as necessary. Funds are available in account
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0410106.589000, "Bus Component Replacement Program." Budget authority for
subsequent years will be requested in each. budget cycle for Council approval.
Prepared by: Ralph Merced, Transit Maintenance Manager
Approved:
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St anie Negriff
Dir~e~ for of Transit Services
Forwarded to Council:
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Rod Gould
City Manager
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