SR 02-14-2017 3B
Ci ty Council
Report
City Council Meeting : February 14, 2017
Agenda Item: 3.B
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To: Mayor and City Council
From: Susan Cline, Director , Public Works, Street & Fleet Services
Subject: Award Bid for Purchase of up to 13 Compressed Natural Gas Front Load
Refuse Packer Vehicles
Recommended Action
Staff recommends that the City Council:
1. Award Bid #4256 to Fred M. Boerner Motor Company, a California -based
company, for the purchase and delivery of six Compressed Natural Gas Front
Load Refuse Packer Vehicles with the option to purchase up to seven additional
Compressed Natural Gas Front Load Refuse Packer Vehicles for one year, with
one additional one -year renewal option ; and
2. Authorize the City Manager to negotiate and execute a contract with Fred M.
Boerner Motor Company, in an amount not to exceed $2,292,107 (including a
10% continge ncy and a 10% discount ) for year one, with one additional one -year
renewal option in the amount of 2,672,234 , for a total amount not to exceed
$4,964,341 over a 2 -year period , with future year funding contingent on Council
budget approval.
Executive Summa ry
The Resource Recovery and Recycling Division (RRR) is responsible for residential and
commercial refuse and recycling collection for the City of Santa Monica. This purchase
would replace up to 13 RRR collection vehicles that have reached the end of thei r cost -
effective useful lives through the Vehicle Replacement Program. In November 2016,
the City solicited bids for the purchase of six Compressed Natural Gas (CNG) Front
Load Refuse Packer Vehicles (Front Loaders) with the option to purchase up to seven
more vehicles at the same price, terms, and conditions . Staff recommends Fred M.
Boerner Motor Company as the best bidder for the purchase and delivery of up to 13
CNG Front Loaders with Crane Carrier LET -2 chassis, AMREP HX 450FL bodies, and
Loadman scal es for a total amount not to exceed $4,964,341 (including a 10%
contingency and a 10% discount ). This purchase meets the goals of the City’s
Reduced -Emissions Fuels Policy by utilizing vehicles equipped with the Cummins ISL -G
Near Zero Engine and powered by compressed natural gas.
Discussion
The City replaces vehicles that have reached the end of their cost -effective useful life
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based on age, mileage, and repair history in accordance with the Vehicle Replacement
Program. This purchase would replace up t o 13 vehicles in the Resource Recovery and
Recycling (RRR) Division. The existing vehicles have a cost -effective useful life span of
seven years based on industry standards as well as utilization and the environment in
which they are operated. The existing vehicles to be replaced were purchased between
2007 and 2011 and are between six and 10 years old. In addition, the total maintenance
cost over the life of the vehicle to -date is nearing or has exceeded the original value as
shown in the Vehicle Data tabl e below.
Vehicle Data
Unit # Year
Cost -
Effective
Useful Life
Age Replacement
FY
Original
Cost
Total
Maintenance
Cost
%
16086 2007 7 10 FY16/17 $221,124 $405,260 183%
16087 2007 7 10 FY17/18 $221,124 $359,870 163%
16088 2007 7 10 FY16/17 $221,124 $342,425 155%
16304 2009 7 8 FY16/17 $269,876 $259,206 96%
16305 2009 7 8 FY16/17 $269,876 $289,368 107%
16306 2009 7 8 FY16/17 $269,876 $243,418 90%
16307 2009 7 8 FY16/17 $269,876 $269,758 100%
16308 2009 7 8 FY16/17 $269,876 $277,215 103%
20046 2010 7 7 FY17/18 $253,604 $197,721 78%
20047 2010 7 7 FY17/18 $253,604 $172,708 68%
20048 2010 7 7 FY17/18 $253,604 $174,927 69%
20085 2011 7 6 FY17/18 $257,544 $180,770 70%
20086 2011 7 6 FY17/18 $257,544 $235,047 91%
Front Loaders are in operation for 7 hours per day, up to 7 days per week. Each vehicle
collects anywhere from 70 to 150 containers of refuse, organics, or recycling daily ,
which is approximately 11 to 24 tons (22,000 to 48,000lbs) of refuse on average per
day.
3 of 5
E xample of CNG Front Load Refuse Packer Vehicle
Staff recommends entering into a contract with Fred M. Boerner Motor Company to
guarantee the pricing as proposed, with the understanding that a modification would be
obtained separately through the term of t he contract to authorize the purchase of
additional vehicle quantities and configurations to be specified, in conformance with the
contract documents. A maximum of 13 CNG Front Loaders would be purchased under
this contract contingent on funding availabili ty.
Vendor Selection
In November 2016, the City published Notices Inviting Bids to furnish and deliver six
CNG Front Load Refuse Packer Vehicles with the option to purchase up to seven more
vehicles at the same price, terms, and conditions, 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. A total of 549 vendors were notified and 14 vendor s
downloaded the bid. Eight bids were received and publicly opened on November 1,
2016 , per Attachment A.
Staff recommend s Fred M. Boerner Motor Company’s Crane Carrier chassis and
AMREP body bid submittal as the best bid for the purchase and delivery of six new and
unused CNG Front Loaders as required by Fleet Management with the option to
purchase up to seven additional vehicles for a total of 13 vehicles .
4 of 5
Currently, 17 of the 19 existing Front Loaders in use by RRR are Crane Carrier chassis
with an AM REP body. Fleet standardization helps to streamline maintenance costs,
driver and mechanic training, as well as parts inventory management.
The Crane Carrier chassis has a lower cab front entry than other standard refuse
vehicle chassis. The lower cab front entry makes it easier and safer for an RRR
equipment operator and passenger side operator to enter and exit the vehicle.
Operators enter and exit the vehicle over 100 times per day. In addition, when RRR
equipment operators exit an alley, the lower c ab allows for greater visibility of oncoming
vehicle and pedestrian traffic.
Compared with similar bids for like chassis and body styles, the Fred M. Boerner Motor
Company bid price offers an overall lower cost when taking the 10% early payment
discount into account.
Bids were evaluated based on the criteria in SMMC 2.24.072, including price, ability to
deliver, quality of product, and compliance with City specifications. Fred M. Boerner Co.
submitted the lowest bid for the Crane Carrier chassis and AMR EP body configuration
when the 10% early payment discount is taken into account:
Bidder Configuration Bid Price with
Options
Bid Price with
Options and
Discounts
Fred M. Boerner Motor Company Crane Carrier / AMREP $5,014,485 $4,513,036
Los Angeles Fre ightliner Crane Carrier / AMREP $4,608,861 N/A
Los Angeles Freightliner Autocar/ Neway $4,257,421 N/A
Los Angeles Freightliner Autocar / AMREP $4,332,973 N/A
Los Angeles Freightliner Crane Carrier / Neway $4,372,810 N/A
Los Angeles Freightliner Autocar / McNeilus $4,529,617 N/A
Los Angeles Freightliner Crane Carrier / McNeilus $4,790,744 N/A
Fred M. Boerner Motor Company Crane Carrier / Neway $5,027,426 $4,524,684
After reviewing all bids, staff determined RRR does not operate Front Loa ders with
Neway or McNeilus bodies or Front Loaders with Autocar chassis and AMREP bodies
due to the high entry level cab. It would be more costly to stock New Way and/or
5 of 5
McNeilus parts and train staff on how to maintain this type of body and would be less
safe for the Front Loader operators to get in and out of an Autocar chassis. Based upon
these criteria, Fred M. Boerner Motor Company is recommended as the best bidder to
provide six CNG Front Loaders with the option to purchase up to seven additional CNG
Front Loaders over a one -year option period in accordance with City specifications.
Financial Impacts and Budget Actions
The contract to be awarded to Fred M. Boerner Company is for an amount not to
exceed $4,964,341 . Funds of $2,292,107 for six CNG Fron t Loaders are available in the
FY 2016 -17 Capital Improvement Program budget in account C540167.589200. Future
year funding for the additional seven CNG Front Loaders is contingent upon Council
budget approval.
Prepared By: Heidi Duran, Administrative Ana lyst
Approved
Forwarded to Council
Attachments:
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6
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DED INCLUDED INCLUDED INCLUDED
SU
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1
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0
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L
$ 1,843,520.00 SUBTOTAL $ 1,941,200.00 SUBTOTAL $ 1,793,804.00
SA
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A
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(
9
.
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(
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%
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$ 175,134.40 SALES TAX (9.5%) $ 184,414.00 SALES TAX (9.5%) $ 170,411.38
TR
A
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1
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$
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$
2
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7
0
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.00 $ 3,450.00 $ 20,700.00 $ 3,450.00 $ 20,700.00
5
Y
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A
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W
A
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A
N
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INCLUDED INCLUDED
5
Y
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$
8
7
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0
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.00 $ 11,049.00 $ 66,294.00 $ 5,800.00 $ 34,800.00
5
Y
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A
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Y
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6
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ED INCLUDED INCLUDED
5
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ED INCLUDED
TI
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6
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126.00 $ 21.00 $ 126.00 $ 21.00 $ 126.00
DE
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6
I
N
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INCLUDED INCLUDED INCLUDED INCLUDED
OT
H
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R
(
P
L
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A
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)
6
N
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$ 2,128,980.40 GRAND TOTAL $ 2,212,734.00 GRAND TOTAL $ 2,019,841.38
DI
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2,062,872.00 $ 285,180.00 $ 1,996,260.00
WE
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$ 2,147,565.00 SUBTOTAL $ 2,261,525.00 SUBTOTAL $ 2,089,563.00
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INCLUDED INCLUDED
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5
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$ 2,479,880.68 GRAND TOTAL $ 2,578,009.88 GRAND TOTAL $ 2,352,968.49
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Reference:
Contract No. 10424
(CCS)