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.
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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.
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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
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