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SR-06-24-2014-3CID City of Santa Monaca 17A 4 W - • • City Council Meeting: June 24, 2014 Agenda Item: To: Mayor and City Council From: Edward F. King, Director of Transit Services Subject: Liquid Natural Gas /Compressed Natural Gas Tank Refurbishment and Repair Services on Transit Buses Recommended Action Staff recommends that the City Council award Bid #4142 to Agility Fuel Systems, a California -based company, in an amount not to exceed $400,000 to provide bus Liquid Natural Gas /Compressed Natural Gas (LNG /CNG) tank refurbishment and repair services on transit buses, with two additional one -year renewal options in the amount of $800,000, for a total not to exceed $1,200,000 over a three -year period, with future year funding contingent on Council approval and budget adoption. Executive Summary Staff recommends award of bid to Agility Fuel Systems, to provide LNG /CNG tank refurbishment and repair services on transit buses at specified unit prices plus applicable sales tax. The award of the bid will enable the City to maintain the LNG /CNG fuel tanks and systems onboard transit buses to Original Equipment Manufacturer recommendations ensure regulatory compliance and maintain overall system safety and reliability. The total expenditure for the three -year term is $1,200,000. Discussion Of the City's fleet of 201 transit buses, 99 are Liquefied Natural Gas (LNG) and 100 are Compressed Natural Gas (CNG). The LNG and CNG transit buses require routine fuel tank and fuel system refurbishment and repair services. To ensure the safe operation of these alternative fueled vehicles, the Big Blue Bus performs LNG fuel system refurbishment and repair. In addition, the CNG fuel tanks require annual certification for compliance. Award of the methane fuel system refurbishment and repair services would enable the Big Blue Bus to maintain the LNG and CNG fuel systems to Original Equipment Manufacturer (OEM) standards and keep compliant with regulatory agency fleet fuel tank and system regulations. 1 Vendor Selection In April 2014, the City published Notices Inviting Bids to provide LNG /CNG tank refurbishment and repair services on transit buses as required by the Big Blue Bus 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 hundred twenty seven (327) vendors were notified, fifteen (15) vendors downloaded the bid and two (2) vendors attended the job walk. One bid was received and publicly opened on May 21, 2014 per Attachment A. The bid was evaluated on price, experience, performance, and compliance with City specifications. Based upon these criteria, Agility Fuel Systems is recommended as the best bidder for bus LNG /CNG tank refurbishment and repair services in accordance with City specifications. Financial Impacts & Budget Actions The purchase order to be awarded to Agility Fuel Systems is for an amount not to exceed $1,200,000. Funds in the amount of $400,000 are available in the FY 2014 -15 proposed Capital Improvement Program budget at account C410106.589000. Future year funding is contingent on Council approval and budget adoption. Prepared by: Getty Modica, Transit Maintenance Officer Approved: Edward F. King Director of Transit Services i Forwarded to Council: Rod Gould City Manager Attachments: Attachment A, Provide Bus LNG /CNG Tank Refurbishment Services Bid Results `a Parchaamg section BID #: F4142 BID CLOSE DATE: 512112014 1717 4th SL Suite 250 Santa Monica. CA S0401 TITLE: PROVIDE BUS LNG /CNG TANK REFURBISHMENT SERVICES AS Agility Fuel Systems `Santa Ana, CA ITEM / DESCRIPTION PERIOD 1 PERIOD 2 PERIOD 3 PRICING : TBD- 06130/16 07/01115 06/30/16 : 07/01/16 106130117 REFURBISHMENT OF ONE (1) BUS $ 2,352.00 $ 2,562.00 $ 277200 LABOR REFURBISHMENT OF ONE (1) BUS $ 3,221.00 $ 3,543.00 $ 3,897.00 PARTS SALES TAX (9.50%): $ 306.00 $ 336.59 $ 370.22 TRANSPORTATION FEES (ONE ROUND $ 690.00 $ 690.00 $ 690.00 TRIP IF APPLICABLE): TOTAL COST FOR REFURBISHMENT OF $ 6,569.00 $ 7,131.59 $ 7,729.22 ONE 1 BUS COST FOR ONE (1) REPLACEMENT LNG $ 14210.90 $ 15,631.99 $ 17,195.79 TANK (NEXGEN, CHART, HLNG115) SALES TAX (9.50%) $ 1,350.03 $ 1,485.04 $ 1,633.54 TOTAL COST FOR ONE (1) REPLACEMENT LNG TANK $ 15,560.93 $ 17,117.03 $ 18,828.73 NEXGEN /CHART, HLNG115 PRICING '( CONTINUED). THREE TANK LNG SYSTEM REFURBISHMENT NEW FLYER BUSES REFURBISHMENT OF ONE (1) BUS $ 3,696.00 $ 4,026.00 $ 4,356.00 ABOR REFURBISHMENT OF ONE (1) BUS $ 4064.00 $ 4,470.00 $ 4,917.00 PARTS LNG FUEL TANK MOUNTING CRADLE $ 8,612.53 $ 9,473.78 $ 10,421.16 REFURBISHMENT GALVANIZING SALES TAX (9.50%): $ 454.96 $ 500.41 $ 550.45 TRANSPORTATION FEES (ONE ROUND $ 690.00 $ 690.00 $ 690.00 TRIP ) (IF APPLICABLE): TOTAL COST FOR REFURBISHMENT OF $ 17517.49 $ 19,160.19 $ 20,934.61 ONE 1 BUS COST FOR ONE (1) REPLACEMENT LNG This tank part # is no longer manufactured. Please See notes below. TANK (TAYLOR- WHARTON 21X61', NG- Specified tank of part # NG -89V no longer manufactured by Taylor Wharton. PART CO3 ) Upon request, Agility Fuel Systems has the experience and resources to convert the existing system to accept other model tanks and/or to a CNG system. An additional option is a "special manufacturing run" by Taylor SAL (,50sU SALES TAX (9FOR TOTAL COST FOR ONE N WEAR N21X81NGTANK(TAYLOR- WHARTON 21X51 °, NG -69V, PART q: Wharton Of this dISCODIInnetl Tank With a minimum quantity order t0 be V088 00O3) determined by Taylor Wharton. PLEASE PROVIDE HOURLY LABOR RATED FOR OTHER REPAIRS OUTSIDE OF THE ABOVE SCOPE OF WORK. (2 AND 3 TANK .: LNG SYSTEM) , SERVICE AND REPAIR HOURLY LABOR $ 112.001 $ 122.00 $ 132.00 RATE EMERGENCY (AFTER HOURS) RATE: 1 $ 140.001 $ 150.001 $ 160.00 PERCENTAGE MARK UPON MATERIALS FOR RELATED TO BUT NOT INCLUDING 30% ABOVE SCOPE: COST+ CNGFUEL SYSTEM INSPECTION AND REPAIR ON SERVICE VEHICLES AND BUSES CNG tank inspection on buses (flat rate) $ 200.00 $ 215.00 $ 225.00 CNG tank inspection on service vehicles $ 150.00 $ 175.00 $ 20000 (flat rate CNG SERVICE AND REPAIR HOURLY $ 112.00 $ 122.00 $ 132.00 LABOR RATE EMERGENCY (AFTER HOURS) RATE: $ 140.00 $ 150.00 $ 160.00 PERCENTAGE MARK UP ON MATERIALS FOR RELATED TO BUT NOT INCLUDING 30% ABOVE SCOPE: COST+ VENDOR MEETS MINIMUM YES QUALIFICATIONS PERCENT OFF MANUFACTURER'S 5% TO 10% PRICE LIST FOR RELATED MISC ITEM PAYMENT TERMS NET 30 DAYS INSURANCE CAN COMPLY COME TO CSM TO CONDUCT BUSINESS YES DELIVER PARTS /PRODUCTS IN OWN YES VEHICLE