SR-01-13-2015-3KCity Council Meeting: January 13, 2015
Agenda Item: 3_ ,
To: Mayor and City Council
From: Martin Pastucha, Director of Public Works
Subject: Award Bid for the Purchase and Full Service Maintenance Agreements for
Three Tennant M30 Scrubber - Sweepers for Promenade Maintenance
Recommended Action
Staff recommends that the City Council:
1. Award Bid #4170 to Tennant Company, a Minnesota -based company, for the
purchase of three Tennant M30 scrubber - sweepers in the amount of $207,752.
2. Authorize the City Manager to negotiate and execute a contractual service
agreement with Tennant Company to provide full service maintenance of these
vehicles in an amount not to exceed $114,513 (includes a 15% contingency) for
one year, with two additional one -year renewal options in the amount of
$229,026 on the same terms and conditions, for a total amount not to exceed
$343,539 over a three -year period, with future year funding contingent on Council
budget approval.
Executive Summary
This purchase would replace three vehicles used by the Public Landscape Division for
maintenance of the street and sidewalk along the Third Street Promenade. In November
2014, the City solicited bids to provide three Tennant M30 scrubber - sweepers or
equivalent, including full service maintenance agreements. After reviewing the sole
responsive bid received, staff recommends Tennant Company as the best bidder for the
purchase of three Tennant M30 scrubber - sweepers in the amount of $207,752, and to
provide full service maintenance of these vehicles in an amount not to exceed $114,513
(includes a 15% contingency for unforeseen repairs outside of the service contract) for
one year, for an initial purchase total of $322,265. The award would include two
additional one -year renewal options in an amount not to exceed $229,026 on the same
terms and conditions for the maintenance portion, for a total amount not to exceed
$343,539 over a three -year period, with future year funding contingent on Council
budget approval.
This purchase meets the goals of the City's Reduced - Emissions Fuels Policy by utilizing
a vehicle powered using propane fuel.
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Discussion
The City replaces vehicles that have reached the end of their useful life through the
Equipment Replacement Program. The three vehicles to be replaced are used by the
Public Landscape Division for maintenance of the streets and sidewalks along the Third
Street Promenade. This purchase meets the goals of the City's Reduced - Emissions
Fuels Policy by reducing emissions and by using propane fuel.
Vendor Selection
In November 2014, the City published Notices Inviting Bids to provide three Tennant
M30 scrubber - sweepers or equivalent, and full service maintenance agreements, as
required by the Public Landscape Division and the Fleet Management Division 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. There were 478 vendors notified, and 22
vendors downloaded the bid. Three responses were received and publicly opened on
November 20, 2014 per Attachment A. Two were No Bids received from Gillig and
Waxie Sanitary Supply, which stated they are unable to supply the goods and /or
services specified. One responsive bid was received from Tennant Company.
The bid was evaluated based on the criteria in SMMC 2.24.072, including price, ability
to deliver, completeness of bid response, past experience, and quality of product.
Tennant Company was the sole responsive bidder and provided a complete bid
response including pricing for both the purchase and lease of the units and the cost of
full service maintenance agreements as requested in the bid.
This purchase, including full service maintenance, would replace three Tennant
sweepers /scrubbers used by Public Landscape to provide maintenance services at the
Third Street Promenade six hours a day, seven days a week. Staff determined that the
maintenance contract was the most cost - effective and productive way to maintain the
units at optimum functionality because the vendor services the units on -site, thereby
shortening the down -time of the vehicles. A maintenance contract has the additional
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advantage of predictable costs with fewer unforeseen out -of- pocket repair bills or
expenses. Based on these criteria, Tennant Company is recommended as the best
bidder to provide three Tennant M30 scrubber - sweepers including full service
maintenance agreements. Tennant Company is the incumbent, provides the level of
experience desired, and currently provides exemplary service for the three existing
Tennant M30 scrubber - sweepers.
Financial Impacts & Budget Actions
The contract to be awarded to Tennant Company is for an amount not to exceed
$322,265 in the first year (includes a 15% contingency for maintenance). Funds are
available in the FY 2014 -15 budget in division 54459. The contract will be charged to
the following accounts:
0540167.589200 $207,752
54459.555010 $114,513
TOTAL $322,265
The maintenance portion of the contract has two additional one -year renewal options on
the same terms and conditions in an amount not to exceed $114,513 for each year, for
a total of three years. Budget authority for subsequent budget years will be requested
in each budget for Council approval. Future contract renewals and funding is contingent
upon Council approval and budget adoption.
Prepared by: Heidi Duran, Administrative Analyst
Approved:
Forwarded to Council:
r y
Martin P tucha Rod Gould
Director of Public Works City Manager
Attachment: A — Bid Summary
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Bid# : 4170 - Promenade Maintenance Scrubbers - Sweepers
Bid Title: Provide Three (3) Tennant M30 Scrubber- Sweepers, or Equal, and Provide Full Service Maintenance Agreement, as Required
by Fleet Management
Bid Closing Date: 11120114
Tennant Sales and Services Company
701 North Lilac Drive
Glllig
Waxie Sanitary
Minneapolic, MN 55422
`Supply
Yes; Cannot furnish
Yes; Cannot furnish
goods /services as
goods /services as
specified -
No Bid Form?
-
specified -
We are unable to
Unable to supply
provide the
product
requested item or
equal to
Pricing
Description
Please State:
MANUFACTURER & PRODUCT #:
Tennant MM30
MODEL:
M 30 LP
YEAR:
2014
BID OPTION #1 - 36 MONTH LEASE 1,200 HOURSIYEAR
QTY
UNIT PRICE PER
EXTENDED
EXTENDED
DESCRIPTION FOR 36 MONTH
VEHICLE PER
AMOUNT PER
AMOUNT PER
LEASE
MONTH
MONTH (A X B)
LEASE TERM
(A)
(B)
(C)
(C X 36 MONTHS)
PURCHASE OF SWEEPER,
INCLUDING FULL SERVICE
MAINTENANCE AND PARTS
3
$ 2.687.11 /
MONTH
$ 8.061.33/
MONTH
$290,207.88
FOB SANTA MONICA, CA
• engine must be carB-
certified and have the highest
tier rating available at time of
lease
OPERATOR'S INSTRUCTION
MANUAL
3
INCLUDED
LUBRICATION INSTRUCTIONS
3
INCLUDED
SHOP MAINTENANCE MANUAL
3
INCLUDED
ILLUSTRATED PARTS BOOK
3
INCLUDED
TIRE FEE
3
$
SUBTOTAL
$290,207.88
SALES TAX (9.5 %)
$27,569.75
DELIVERY
$5,037.00
TIRE FEE
$
TRAINING
INCLUDED
OTHER (PLEASE EXPLAIN)
$
GRAND TOTAL OF LEASE INCLUDING FULL SERVICE MAINTENANCE &
PARTS FOR THE ENTIRE TERM OF THE LEASE
$322,814.63
Is a Security deposit required?
No
HOURLYALLOWANCE
Please indicate the annual Hourly
$ None listed
allowance
Amount per hour for excess usage
$
FULL SERVICE MAINTENANCE
Standard On Demand
Trip Charge (if applicable)
$107.00
$107i00
per visit
pervsit
Hourly Rate (if applicable)
$122.00
1$122. 00
per hour
I per hour
Site Visit (if applicable) *
$98.00
1$98.00
per hour
per hour
Please be sure to indicate that the full
maintenance agreement pertains to the
Included with Bid and Marked as applicable to the lease
lease.
Pricing good through:
12111/2014
BID OPTION #2 - PURCHASE
Did# : 4170 - Promenade Maintenance Scrubbers- Sweepers
Bid Title: Provide Three (3) Tennant M30 Scrubber - Sweepers, or Equal, and Provide Full Service Maintenance Agreement, as Required
by Fleet Management
Bid Closing Date: 11120114
Tennant Sales and Services Company
.701 North Lilac Drive
Gillig
Waxie Sanitary
Minneapolic, MN 55422
Supply
QTY
UNIT PRICE PER VEHICLE
EXTENDED
DESCRIPTION FOR PURCHASE
AMOUNT
(A)
(B)
(A X B)
PURCHASE OF SWEEPER,
INCLUDING FULL SERVICE
MAINTENANCE AND PARTS
3
$61,709.17
$185,127.51
FOB SANTA MONICA, CA
• engine must be carg-
certified and have the highest
tier rating available at time of
lease
OPERATOR'S INSTRUCTION
MANUAL
3
INCLUDED
LUBRICATION INSTRUCTIONS
3
INCLUDED
SHOP MAINTENANCE MANUAL
3
INCLUDED
ILLUSTRATED PARTS BOOK
3
$185,127.51
SUBTOTAL
$185,127.51
SALES TAX (9.8%)
$17,587.11
DELIVERY
3
$1,679.00
$5,037.00
TIRE FEE
3
$
$
TRAINING
11
INCLUDED
OTHER (PLEASE EXPLAIN) **
3
$33,192.00
$99,576.00
GRAND TOTAL OF PURCHASE INCLUDING FULL SERVICE MAINTENANCE &
PARTS FOR THE ENTIRE TERM OF THE LEASE
$307,327.62
Is a Security deposit required?
No
HOURLYALLOWANCE
allowance
$ None listed
Amount per hour for excess usage
$
FULL SERVICE MAINTENANCE
Standard On Demand
Trip Charge (if applicable)
$107.00
$107.00
per visit
per visit
Hourly Rate (if applicable)
$122.00
$122.00
per hour
per hour
Site Visit (if applicable) * °*
$98.00
$98.00
per hour
perhour
Please be sure to indicate that the full
maintenance agreement pertains to the
Included with Bid and Marked as applicable to the lease
lease.
Pricing good through:
1/11/2014
" Preventative Maintenance - Only applicable if full service
is declined. Prices on previous page include full service
Vendor Notes:
" Full Service Warranty
"* Preventative Maintenance - only applicable if full service
is not purchased. Price quoted includes service - full.
Do you come to CSM to conduct
Yes
business?
Do you deliver parts in your own company
Yes
vehicle?
Full service maintenance, including parts
Can comply
(for Both Lease and Purchase)
Vendor should respond within 3 hours
after call out. The time frame that it takes
Can comply
to repair the unit should be kept to a
minimum.
For leased vehicles, state delivery date
45 days
after purchase order is issued:
Payment Terms I
Net 30
Reference:
Agreement No. 10017
(CCS)