Loading...
SR-05-13-2014-3FCity Council Meeting: May 13, 2014 Agenda Item: 3—F To: Mayor and City Council From: Martin Pastucha, Director of Public Works Subject: Purchase of One Additional CNG Side Loader Refuse Packer Unit Recommended Action Staff recommends that the City Council approve a change order to Purchase Order 360383 -OP in the amount of $288,717 with Boerner Truck Center, a California -based company, for the purchase and delivery of one additional compressed natural gas (CNG) side loader refuse packer unit. This would result in an amended purchase order with a new total amount not to exceed $1,115,605. Executive Summary On June 11 2013 Council awarded Bid #4056 to Boerner Truck Center for the purchase and delivery of three CNG side loader refuse packer units for $826,888 to replace three refuse loaders that had reached the end of their useful life. In the bid Boerner Truck Center provided pricing for the optional purchase of additional vehicles within one year for less than 5% price increase. Staff recommends Council exercise this option to purchase one additional CNG side loader from Boerner Truck Center for $288,717. This purchase would result in an amended purchase order total amount of $1,115,605. Discussion The City replaces vehicles that have reached the end of their useful life through the vehicle replacement program. On June 11, 2013 Council awarded Bid #4056 to Boerner Truck Center for the purchase and delivery of three CNG side loader refuse packer units for $826,888 to replace three refuse loaders that had reached the end of their useful life. The Notice Inviting Bids posted by the City was for four CNG side loader refuse packer units. After receiving the bid responses and analyzing the financial impact of replacing all four refuse loaders at once, staff determined that the useful life of one of the refuse loaders scheduled for replacement could be extended and the unit could remain in service for an additional year to decrease the impact to the budget. 1 The purchase of an additional CNG side loader refuse packer unit is to replace the refuse loader used by the City's Resource Recovery and Recycling (RRR) Division for residential and commercial refuse collection that has now reached the end of its useful life. This purchase meets the goals of the City's Reduced - Emissions Fuels Policy by reducing emissions and by using CNG fuel. Vendor Selection In March 2013, the City published Notices Inviting Bids to furnish and deliver four CNG side loader refuse packer units as required by the Fleet Management Division in accordance with City specifications. The bid was posted on the City's on -line bidding website and notices were advertised in the Santa Monica Daily Press in accordance with City Charter and Municipal Code provisions. Two bids were received and publicly opened on April 1, 2013. Bids were evaluated based on price, quality of material, and compliance with City specifications. Boerner Truck Center was the lowest and best bidder of the two bidders. The bid submitted by both vendors included an option to purchase additional vehicles within one year for less than 5% price increase to the unit price. Boerner Truck Center has confirmed an additional vehicle is available at the same terms and conditions as Bid #4056 with a 4.75% price increase. This would result in an additional vehicle purchase in the amount of $288,717. Boerner Truck Center is still the lowest and best bidder after the 4.75% increase is taken into consideration. 2 Financial Impacts & Budget Actions The change order to be awarded to Boerner Truck Center is $288,717, for an amended purchase order total not to exceed $1,115,605. Funds are available in the FY2013 -14 Capital Improvement Program budget in account C540167.589200. Prepared by: Heidi Said, Administrative Analyst Approved: Ma in Pastucha Director of Public Works Forwarded to Council: Rod Gould City Manager 3