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SR 05-10-2016 3B City Council Report City Council Meeting: May 10, 2016 Agenda Item: 3.B To: Mayor and City Council From: Martin Pastucha, Director, Public Works, Street & Fleet Services Subject: Bid Award for the Purchase of One Fourteen Yard Compressed Natural Gas Dump Truck and One Compressed Natural Gas Stake Bed Truck Recommended Action Staff recommends that the City Council: 1. Award Bid #4239 to Los Angeles Freightliner, a California-based company for the purchase and delivery of one Compressed Natural Gas Dump Truck to support the Street Maintenance operation; and to Thorson Motor Company, a California-based company for the purchase and delivery of one Compressed Natural Gas Stake Bed Truck to support the operations of the Resource Recovery and Recycling Division; 2. Authorize the Purchasing Services Manager to issue a purchase order with Los Angeles Freightliner for the purchase and delivery of one Compressed Natural Gas Dump Truck in the amount not to exceed $219,328; and to issue a purchase order with Thorson Motor Company for the purchase and delivery of one Compressed Natural Gas Stake Bed Truck in the amount not to exceed $105,985. Executive Summary The City is responsible for pothole repair, sidewalk patching, repairing eroded and low This purchase would replace two dump trucks and one stake bed truck that have reached the end of their cost-effective useful life through the Vehicle Replacement Program. In March 2016, the City solicited bids for the purchase and delivery of two Compressed Natural Gas (CNG) fourteen yard cab-over-engine (COE) dump trucks and two CNG COE stake bed trucks with a minimum gross vehicle weight (GVW) of 16,500 pounds. After reviewing the bids received, staff recommends a split bid award as follows: Los Angeles Freightliner as the best bidder for the purchase and delivery of one CNG dump truck in the amount of $219,328; and Thorson Motor Company as the best bidder for one CNG stake bed truck in the amount of $105,985. This purchase meets -Emissions Fuels Policy by utilizing vehicles powered by CNG. 1 of 5 Discussion The City replaces vehicles that have reached the end of their cost-effective useful life through the Vehicle Replacement Program. The existing vehicles have a cost-effective useful life span of ten years. The vehicle that would be replaced by the stake bed was purchased in 2004 and is 12 years old. The first vehicle that would be replaced by the dump truck was purchased in 1999 and is 17 years old. The second vehicle that would be replaced by the dump truck was purchased in 2002 and is 14 years old. Stake Bed Truck Purchase The stake bed truck that would be purchased through this procurement would be used to support the Resource Recovery and Recycling Division anywhere from five to seven days per week and would be primarily used for the delivery of new refuse, recycling and organics containers, delivery and removal of metal and plastic bins to and from commercial customers, delivery and removal of carts and bins for special events, removal and disposal of special pickups, alley clean-ups, illegal dumps and storm generated debris, such as palm fronds. From July 1, 2015 through April 23rd, 2016, staff have received the following requests for which this vehicle would be utilized: 1,843 requests for cart removal, exchange or replacement. 3,095 request for special bulk items collection or illegal dump removals. 247 Government Outreach request for illegal dump removal. 421 special event cart delivery/removals. Los Angeles Freightliner took exception to the minimum GVW of 16,500 pounds and the tilt/dump body in its submittal for the stake beds. Los Angeles Freightliner submitted a bid with a minimum GVW of 14,500 pounds and no tilt/dump body in its submittal for the stake beds which accounts for the cost differential between the two stake bed bids. These exceptions are not acceptable and bid is considered non- responsive. A second stake bed truck for Street and Fleet Services Division will be rebid as a result of the cost of the stake bed bid price compared to the amount which has been accumulated for its replacement. The specifications for this truck are more stringent than needed for the Street Maintenance stake bed truck. The second stake bed originally intended to replace a unit for the Street Signs and Markings section of the Street and Fleet Services Division will not be purchased through this procurement and will have to be rebid after changing the bid specifications. This will allow us to secure a vehicle at lower cost and provide an opportunity for more dealers to provide bids. 2 of 5 Example of a CNG stake bed truck Dump Truck Purchase In light of the cost of the type of dump truck necessary for Street Maintenance operations, only one new larger dump truck would be purchased to replace two existing vehicles. The increase in the cost of production for this type of vehicle over the last 17 years has greatly outpaced the original cost of production for the vehicle being replaced. The dump truck would be used to support the Str Street Maintenance operation by hauling loose materials for both concrete and asphalt projects; to haul asphalt grinds from alleys, streets, parking lots, and the SM Airport, as well as other projects requiring asphalt milling. It would also be used to haul large quantities of hot asphalt from the asphalt plant for larger projects outside of the scope and capability of the patch trucks. In addition, the truck would be used to haul broken concrete from sidewalk removal and replacement projects throughout the city to the local dump and would also be used to haul large quantities of miscellaneous materials such as crushed base, crushed rock and dirt, and sand. In FY2014-15, 1,740 tons of material, equating to 3,480,000 pounds, was hauled and dumped at the collection facility by a total of five dump trucks in the Street Maintenance opIn the current fiscal year, a total of 1,326 tons of material, or 2,652,000 pounds, has been hauled and dumped at the collection facility so far. 3 of 5 Example of a CNG dump truck Vendor/Consultant Selection In March 2016, the City published Notices Inviting Bids for the purchase and delivery of two CNG fourteen yard COE dump trucks and two CNG COE stake bed trucks with a minimum gross vehicle weight (GVW) of 16,500 pounds, in accordance with City -line bidding site, and notices were advertised in the Santa Monica Daily Press in accordance with City Charter and Municipal Code provisions. A total of 683 vendors were notified and 17 vendors downloaded the bid. Two bids were received and publicly opened on March 15, 2016, per Attachment A. Two CNG fourteen yard COE dump trucks Los Angeles Freightliner $219,328 (pricing for one vehicle) Two CNG COE stake bed trucks Thorson Motor Company $105,985 (pricing for one vehicle) Procurement conducted additional outreach to vendors who downloaded the bid to see why they did not submit a bid; one response was received from Transwest Truck Center which stated it did not submit a bid because its sister company, Los Angeles Freightliner, submitted a bid. requirements. Alternative fuel vehicles operate on fuels other than gasoline or diesel in order to reduce greenhouse gas emission and pollution. These vehicles exceed the basic standards all new vehicles must meet to be sold in California and include low emission vehicles (LEVs) and zero emission vehicles (ZEVs). As a result, the majority of the trucks the City purchases cannot be simply purchased off the lot or from a regular dealer. Instead, an unleaded fueled vehicle on the lot must have its engine and fuel components removed and replaced with a CNG system. In some cases, a vehicle may be prebuilt as a CNG vehicle, however, only one brand may offer this option, and then the vehicle must also be California Air Resources Board (CARB) certified for the specific model year. The City has made a commitment to procurement decisions that minimize negative environmental impacts, resulting in a limited number of vendors being able to 4 of 5 The bid was evaluated based on the criteria in SMMC 2.24.072, including price, previous experience, ability to deliver, quality of product, and compliance with City specifications. Based on these criteria, staff recommends to split the award as follows: Los Angeles Freightliner as the best bidder for the purchase and delivery of one CNG dump truck in the amount of $219,328 for Street Maintenance and Thorson Motor Center as the best bidder for the purchase and delivery of one CNG stake bed truck for the Resource Recovery and Recycling Division in the amount of $105,985. Financial Impacts and Budget Actions The purchase order to be awarded to Los Angeles Freightliner for one CNG dump truck is for an amount not to exceed $219,328. Funds are available in the FY 2015-16 Capital Improvement Program budget in account C540167.589200. The purchase order to be awarded to Thorson Motor Company for one CNG stake bed truck is for an amount not to exceed $105,985. Funds are available in the FY 2015-16 Capital Improvement Program budget in account C540167.589200. Prepared By: Heidi Duran, Administrative Analyst Approved Forwarded to Council Attachments: A. Attachment A - Bid Summary 5 of 5 AttachmentABidSummary BidDescription:Furnishanddelivertwo(2)newandunused14YDCOEDumpTrucksandtwo(2)newandunused16,500lbminimum GVWRCNGCOEextendedcabandchassisasrequiredbyStreetManagement LOSANGELESTRUCKCENTERDBALOSPBLOADER BidNo.:4239 THORSONMOTORCOMPANYTRANSWESTTRUCKCENTER ANGELESFREIGHTLINERCORPORATION BidClosingDate:3/15/16 WHITTIER,CALIFORNIAPASADENA,CALIFORNIA DescriptionBidderExceptionsBidderExceptions (2)14YardCOEDumpTrucks NOBIDTranswestnobidthisbecauseLA ChassisSpecificationsNewandunused,currentmodelyearornewer,AutocarNOBIDBiddingas AsSpecified Freightlinerwhichisoneofourother ACMD64Class8CabOverEnginechassis,orequal,withallstandardfeatures.subcontractor storesbidthis. Year:2017 Make:Autocar Model:ACMD64 Thebiddershallbepreparedtodeliverallvehicleswithin120180calendardaysfrom 180230DaysARO receivingbidaward Deduct$5000ifPilotReviewcanbeconductedinAzusaatBody Notes: Co.,inlieuofAutocarinIndiana. PricingResponseResponse DescriptionQuantityUnitPriceExtendedPriceUnitPriceExtendedPrice Newandunused,currentmodelyearor newer,14YDDumpTruck,completewithall2$196,474.00$392,948.00 componentsasspecified Training2$750.00$1,500.00 Operator'sinstructionmanual2Included Shopservice/repairmaintenancemanuals2Included Completewiringdiagrams1Included Manufacturer'sproductliteraturewith 1Included specificationsonallcomponents Preventativemaintenanceschedules1Included Subtotal$394,448.00$0.00 SalesTax(9.5%)$37,472.56$0.00 Warranty:2$8,350.00$16,700.00 TireFee:2$17.50$35.00 Delivery:2Nocharge Other(Pleasedescribe):2None GrandTotal$448,655.56$0.00 Totalamountofbid$448,655.56 FourHundredFortyEightThousandSixHundredFiftyFiveDollars Totalamountofbidwritteninwords: andFiftySixCents Ifanincentivediscountprogramhasbeenincludedinthequotedprice,please None describe: Pleaseseewarrantystatementsattachedforalldetailsonboth Pleaseindicateallwarrantiesapplicabletothispurchase: trucksbid. Pleasestateguaranteeddeliverydate180230 Pleasedescribeanyadditionalfee&chargesnotlistedaboveNone Percentdiscountoffofmanufacturer'spricelistforrelatedmiscellaneousitemssuch 12%to27%offofretail asheavydutyfloormats,lights,andmirrors PaymentTermsZeropercentdiscountnet30days Pleasestateguaranteeddeliverydate180230 (2)16,500MinGVWStakeBeds NewcurrentmodelofCNGCaboverEngine,extendedcab&chassis.Acutawayvanmaybeconsidereddependingonoveralllengthandturningradius. ModelResponseResponse Stateyear,makeandmodel; 2016IsuzuNPR2016Pleasenote:IsuzuNPRHDCrewCabisGreencraft1061 builtasa"Onesizefitsall"styleoftruck, notfromamenuofoptionsaswithin StateWheelbase:176"WB150"AsSpecified sometruckslikeanAutocarora FreightlinerTruck,henceoncethemodel isselectedsoistheoptioncontent. Stateturningradius: 51.9FeetCurbtoCurb31.4' GVWR Asspecified Available19,500GVWatadditional 16,500lbs.minimumand20,000lbs.maximum14,500lb.GVWR AsSpecified16,500 costof+$15,000 Brakes ComplyExceptionAirBrakes Thebiddershallbepreparedtodeliverallvehicleswithin120180calendardaysfromre180230ARO PricingResponseResponse DescriptionQuantityUnitPriceExtendedPriceUnitPriceExtendedPrice ,,. Newandunusedcurrentmodel16500lb minimumGVWRCNGcaboverengine(COE), 2$78,909.00$157,818.00$96,778.00$193,556.00 extendedcabandchassiswith16footstake bedtruckwithdumpbodycompletewithall QuotingIsuzuNPE:14500GVWRlowcabforward,CNG,15.5' Note stakebedwithconventionalliftgate Operator'sinstructionmanual3IncludedIncluded Lubricationinstructions1IncludedIncluded Shopmaintenancemanuals1IncludedIncluded Illustratedpartsbook1IncludedIncluded Electricwiringschematic1IncludedIncluded Subtotal$157,818.00$193,556.00 SalesTax(9.5%)$14,992.71$18,387.82 Warranty:2Noaddedwarranty TireFee:2$10.50$21.00$12.25$24.50 Delivery:2NochargeNocharge Other(Pleasedescribe):2None Thetirechargewasnotextendedinthebidresponse.TheGrand Note:Totalonbidresultsreflectextendedtirecharge.Totalamountand writtenamountofbidrelectsthepriceinthebidresponse. GrandTotal$172,842.21$211,968.32 Totalamountofbid$172,821.21$211,968.32 OneHundredSeventyTwoThousand,EightHundredTwentyOneTwoHundredElevenThousand,NineHundredSixtyEight,andThirty Totalamountofbidwritteninwords: DollarsandTwentyOneCentsTwoCents Ifanincentivediscountprogramhasbeenincludedinthequotedprice,please None describe: Pleaseseewarrantystatementsattachedforalldetailsonboth Pleaseindicateallwarrantiesapplicabletothispurchase:3Years,36,000miles(basicchassis)5years60,000milesPowerTrain trucksbid. Pleasestateguaranteeddeliverydate180230180 Pleasedescribeanyadditionalfee&chargesnotlistedabovenone Percentdiscountoffofmanufacturer'spricelistforrelatedmiscellaneousitemssuch 12%to27%offofretail asheavydutyfloormats,lights,andmirrors PaymentTermsZeropercentdiscountnet30days AdditionalpurchaseofvehiclesAcknowledgementconfirmedAcknowledgementconfirmed GeneralResponseResponse Addendum#1CompleteComplete BusinessLicenseOutofCityBusinessLicense Oaks:IncompleteComplete Arizona:CompleteNopresenceCompleteNopresence