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sr-072412-3cCity Council Meeting: July 24, 2012 Agenda Item: 3-C To: Mayor and City Council From: Gigi Decavalles- Hughes, Director of Finance Subject: Heavy Duty Batteries Recommended Action Staff recommends that the City Council award Bid #3091 to Valley Power Systems, a California -based company, for the purchase and delivery of heavy duty batteries. The amount of the purchase order to be awarded to Valley Power Supply is for $120,000 for the first year with two additional one -year renewal options at a 4% increase per year, for a total not to'exceed contract amount of $375,000. Executive Summary Changing batteries on transit coaches and fire vehicles is a necessary and normal part of preventative maintenance. Transit buses use three different styles of heavy duty batteries; Fire Dept. vehicles use one type of battery. Following a formal bid process, Valley Power Systems is recommended to provide heavy duty batteries. The bid award is for specified batteries plus applicable sales tax for a one -year period with two additional one -year renewal options at a 4% increase per year, with the same terms and conditions as the first year period. The total annual expenditure is $120,000 for the first year for a total three -year contract amount not to exceed $375,000. Discussion Transit and fire equipment batteries require periodic service and replacement. The BBB's automated fleet management system, bus head signs, and the innovative and expanding technology used in fire vehicles creates a significant demand on the vehicles' electrical system. Changing batteries on transit coaches and fire vehicles is a necessary part of preventative maintenance. Transit Buses use three different styles of heavy duty batteries; Fire Department vehicles use one type of battery. Batteries to be purchased are heavy duty Model 8D batteries and Group 31 batteries. 1 Vendor Selection In April 2012, the City published Notices Inviting Bids to provide heavy duty batteries as required by the Big Blue Bus responsible for maintenance of transit coaches and Fire Department vehicles in accordance with City specifications. The bid was posted on the City's on -line bidding site, and notices were advertised in the Santa Monica Daily Press in accordance with City Charter and Municipal Code provisions. Three bids were received and publicly opened on May 1, 2012 per Attachment A. Bids were evaluated based on price, product availability, selection, quality of material, and compliance with City specifications. Valley Power Supply was the lowest bidder, provided the specified brands, and they have a good standing relationship with the City. Based on these criteria, Valley Power Supply is recommended as the best bidder to provide heavy duty batteries in accordance with the City specification. Financial Impacts & Budget Actions The amount of the purchase order to be awarded to Valley Power Supply is for $120,000 for the first year with two additional one -year renewal options at a 4% increase per year, for a total amount not to exceed $375,000. Funds in the amount of $125,000 are available in account number 41.111030, in the FY 2012 -13 Adopted Budget. Budget authority for subsequent years will be requested in each budget cycle for Council approval. Future funding is contingent upon Council approval. Prepared by: Kellee Mac Donald, Senior Buyer Approved: gi Decavalles -Hu rector of Finance Attachments: Attachment A — Pricing 2 Forwarded to Council: Rod Gould City Manager BID 3091 ATTACHMENT A BID DESCRIPTION: PROVIDE HEAVY DUTY BATTERIES AS REQUIRED BY THE BIG BLUE BUS ADVANCED BATTERY SYSTEMS, INC O'REILLY AUTO PARTS I VALLEY POWER SYSTEMS, INC CULVER CITY, CA SPRINGFIELD, MO I CITY OF INDUSTRY. CA DESCRIPTION PRICE PRICE PRICE PRICE W /CORE CHARGE DEKA 908DFT(LEAD ACID 1425 CCA, 440 MINIMUM RESERVE CAPACITY) $228.00 $201.591bidalternme $ 189.79 +$50.00 for CORE IF NOT RETURNED 239.79 DEKA SASD(AGM 1500 CCA, 517 MINIMUM RESERVE CAPACITY) $399.00 $409.99 bid alternate $37 8.19 +$48.00 for CORE IF NOT RETURNED 426.19 DEKA 7T31 (730 CCA, 190 min reserve capacity) $115.0 $90.99 bid alternate $94.07 +$18.00 for CORE IF NOT RETURNED 112.07 DEKA SA31 (925 CCA, 190 min reserve capacity) $185.00 $101.99 bid alternate $ 144.74 +$18.00 for CORE IF NOT RETURNED 162.74 Total $ 927.00 $ $04.56 $ 806.79 $ 940.79 TRAINING PRICE PER HOUR NO CHARGE NO CHARGE $95.00 CHARGING SYSTEMS DATA LOGGING PRICE PER HOUR NO CHARGE NO CHARGE $95.00 RENEWAL OPTIONS YEAR TWO INCREASE i 6% 10% 4% YEAR THREE INCREASE 5% 17 4%