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SR-11-26-2013-3JCity Council Meeting: November 26, 2013 Agenda Item: 3J To: Mayor and City Council From: Martin Pastucha, Director of Public Works Subject: Bid Award for Purchase of Cold Milling Machine Recommended Action Staff recommends that the City Council award Bid #4108 for the purchase and delivery of one Wirtgen compact cold milling machine to Nixon -Egli Equipment Co., a California - based company, in the amount of $144,484. Executive Summary This purchase would replace three vehicles that have reached the end of their useful life. In August 2013, the City solicited bids for the purchase of one new and unused Wirtgen compact cold milling machine. After reviewing the bid received, staff recommends Nixon -Egli Equipment Co. as the best bidder for the purchase and delivery of one Wirtgen cold milling machine in the amount of $144,484. Discussion The City replaces vehicles that have reached the end of their useful life through the vehicle replacement program. Due to changes in the operational needs of the Street and Fleet Services Division, the Wirtgen compact cold milling machine would replace three vehicles that have reached the end of their useful life. This vehicle would be used in asphalt paving and rehabilitation operations. The Wirtgen machine allows field crews to work in more restricted areas and gets closer to assets such as manholes without damaging the structures. It also reduces the amount of asphalt staff has to hand -dig around these types of structures. This purchase is exempt from the City's Reduced - Emissions Fuels Policy because off - road equipment of this type is not available in alternate fuels. The Wirtgen cold milling machine's diesel powered engine complies with all air quality regulations including the California Air Resources Board's Tier 4i emissions requirements. 1 Vendor Selection In August 2013, the City published Notices Inviting Bids to furnish and deliver one new and unused Wirtgen compact cold milling machine as required by the Street and Fleet Services Division. 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. There were 313 vendors notified and 13 downloaded the bid. One bid was received from Nixon Egli Equipment Co. and one "no bid" response was received from Quinn Co. and publicly opened on September 18, 2013 per Attachment A. The City's Purchasing Section conducted additional outreach to vendors who downloaded the bid to see why they did not submit a bid; no responses were received. The bid was evaluated based on price, quality of material, compliance with City specifications, and ability to provide the equipment. Quinn Co. provided a "no bid" response because they do not manufacture a compact cold milling machine. The price provided by Nixon Egli Equipment Co. for one Wirtgen compact cold milling machine is comparable with purchases by other municipalities. Past history with this vendor has shown they are responsive and have been accommodating to our training needs at no additional cost. Based upon these criteria, Nixon -Egli Equipment Co. is recommended as the best bidder for the purchase of one Wirtgen compact cold milling machine in accordance with City specifications. 6 Financial Impacts & Budget Actions The purchase order amount to be awarded to Nixon -Egli Equipment Co. is for an amount not to exceed $144,484. Funds are available in the FY 2013 -14 Capital Improvement Program budget in account C540167.589200. Prepared by: Thomas Bullers, Administrative Analyst Approved: I LL, " I -- Martin Pastucha Director of Public Works Attachments: A — Bid Summary Forwarded to Council: Rod Gould City Manager 3 Bid No. 4108 Bid Description: One New and Unused Wirtgen Cold Milling Machine Bid Close Date: 9/18/13 Nixon-Egli .Equipment Co. Ontario, CA Quinn Co, city of Industry, CA Item Description QTY Price Price 1 Wirtgen Cold Milling Machine, Model W35DC 1 $131,949.00 NO BID Sales Tax $12,535.16 Delivery $0.00 Other $0.00 Grand Total $144,484.16 Item Description Response 2 Delivery (ARO) 150 to 180 Days 3 Payment Terms Net 30 Days 4 Additional Vehicle Purchase Offer 3% increase 5 Vendor Comments Additional vehicle pure ase o er valid If purchase is made on or after January 2014.