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SR 04-18-2017 3H Ci ty Council Report City Council Meeting : April 18, 2017 Agenda Item: 3.H 1 of 4 To: Mayor and City Council From: Susan Cline, Director , Public Works, Street & Fleet Services Subject: Purchase of Three Compressed Natural Gas Regenerative Air Street Sweeper Vehicles Recommended Action Staff recommends that the City Council a uthorize the Purchasing Services Manager to issue a purchase order to Mar -Co Equipment Company, a California -based company, for the purchase and delivery of t hree Compressed Natural Gas Truck Mounted R egenerative Air Street Sweepers. This recommended award is made as an exception to the competitive bidding process pursuant to Section 2.24.080 (b) and is for a total amount not to exceed $956,389 . Executive Summary The City is responsible for street sweeping services in order to maintain the safety, environment and a esthetics of the streets through the removal of debris. This purchase would replace three vehicles that have reached the end of their cost effective useful life through the Vehicle Replacement Program. This recommended award is made as an exception to the competitive bidding process pursuant to SMMC Section 2.24.080 (b). Staff recommends that City Council authorize the Purchasing Services Manager to piggyback on Bid No. 4234 and issue a purchase order with Mar -Co Equipment Company for three CNG Truck Mounte d Regenerative Air Street Sweepers in an amount not to exceed $956,389. This purchase meets the goals of the City’s Reduced - Emissions Fuels Policy by utilizing a vehicle powered by CNG fuel. Background 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 five years based on industry standards as well as utilization and the environment in which they are operated. Swe eping vehicles are in operation six days and six nights per week (Sunday through Friday). Sweepers are in operation anywhere from six to twelve hours per day Sunday through Friday which includes both day and night shift s . In addition, these units are oper ated near the beach, resulting in premature wear due to salt air and sand exposure . Once the total maintenance cost reach es 50% 2 of 4 of the original cost, the unit is brought in for an assessment and staff determines if the vehicle needs to be replaced. The cur rent equipment was purchased in 2011 and is six years old. Vehicle Data Unit # Year Life Cycle Age Replacement FY Original Cost Total Maint % 20129 2011 5 6 FY17/18 $296,551.48 $181,118.58 61% 20130 2011 5 6 FY17/18 $296,551.48 $181,424.53 61% 20131 2 011 5 6 FY17/18 $296,551.48 $157,737.93 53% Discussion The truck mounted regenerative air street sweepers would be used to support street sweeping operations in the Resource Recovery and Recycling Division. Resource Recovery and Recycling currently emplo ys seven street sweepers, three of which would be replaced by the new vehicles. Street sweeping is necessary to maintain the safety , environment and aesthetics of the streets through the removal of debris. Street sweeping protects the environment by assist ing in the removal of metals, pesticides, herbicides, oil, and other pollutants and debris that may impact the storm water system. Street sweeping clears debris from the street and gutter which may impede motorists, bicyclists, or pedestrians. The City cu rrently sweeps over 26,000 curb miles and collects over 2,000 tons of sweeping debris annually. Example of a CNG truck mounted regenerative air street sweeper 3 of 4 Vendor selection In January 2016, the City solicited bids for the purchase of two Compressed Natural Gas (CNG) Truck Mounted Regenerative Air Street Sweepers. 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 578 vendors were notified and 16 vendors downloaded the bid. A total of 3 bids were received and publicly opened on January 21, 2016 per Attachment A. Bids were evaluated based on th e criteria in SMMC 2.24.072, including price, previous experience, ability to deliver, quality of product, and compliance with City specifications. Mar -Co Equipment Company is the second lowest bidder and submitted a competitive bid for a model which the C ity currently employs. The City utilizes multiple sweepers of this model for which Fleet Maintenance staff have been trained to maintain. Mar -co Equipment Company’s proposal was able to best meet the City’s requirements, including the ability to provide th e method of dumping required in the specification and the option to include a broom assisted pick -up head. On March 22, 2016 , per Attachment B, City Council awarded Bid No. 4234 to Mar -Co Equipment Company for the purchase and delivery of two CNG Truck M ounted Regenerative Air Street Sweepers. After the bid was awarded, three additional CNG truck mounted regenerative air street sweepers reached the end of their cost -effective useful life. Staff contacted Mar -Co Equipment Company and they agreed to provide three additional vehicles at the same price, terms, and conditions as stated in Bid No. 4234 , per Attachment C. Staff recommends that City Council authorize the Purchasing Services Manager to piggyback on Bid No. 4234 and issue a purchase order with Mar -Co Equipment Company for three CNG Truck Mounted Regenerative Air Street Sweepers in an amount not to exceed $956,389. This qualifies as an exception to the competitive process per SMMC Section 2.24.080 (b), where competitive bid procedures have already b een utilized. 4 of 4 Financial Impacts and Budget Actions The purchase order to be awarded to Mar -Co Equipment Company is for an amount not to exceed $956,389 . Funds are available in the FY 2016 -17 Capital Improvement Program budget in account C540167.589200. Prepared By: Heidi Duran, Administrative Analyst Approved Forwarded to Council Attachments: A. Bid Summary B. March 22 , 2016 Staff Report C. Mar -Co Letter D. Oaks Form DescriptionQuantity Unit PriceExtended PriceUnit PriceExtended PriceUnit PriceExtended Price Two (2) New and unused, CNG regenerative air street sweepers, complete with all components as specified 3$317,032.00$951,096.00$284,200.00$852,600.00$255,000.00$765,000.00 Operator's instruction manual6IncludedIncluded Operator's instructional DVD3IncludedIncluded OEM illustrated parts book3IncludedIncluded Shop maintenance manuals3IncludedIncluded OEM electric wiring schematic3IncludedIncluded Lubrication instructions3IncludedIncluded Parts manual for equipment added by end manufacturer3IncludedIncluded Electric wiring schematic for equipment added by end manufacturer3IncludedIncluded Hydraulic schematic for equipment added by end manufacturer3IncludedIncluded Preventative maintenance schedule1IncludedIncluded Diagnostic software1$3,800.00$3,800.00 Cummins Engine ‐Trans ‐ read only KEM engine cables & software $2875 $1,200.00$1,200.00 Additional abrasion protection3Included$975.00$2,925.00$0.00 Auxiliary hydraulic system shall operate hydraulic system when auxiliary engine is off to raise gutter broom, pick ‐up head and dump hopper 3$2,400.00$7,200.00$1,100.00$3,300.00Included Broom assisted pick ‐up head3$3,100.00$9,300.00$4,200.00$12,600.00Not available Warranty:3$0.003 year included$8,000.00$24,000.00Included Tire Fee:3$0.00Included$0.00$12.25$36.75 Delivery:3$0.00Included$0.00$4,250.00$12,750.00 Other (Please describe):3$0.00Included$0.00$0.00 Initial to confirm acknowledgement of additional purchase of vehicles AcknowledgedAcknowledged Included Payment Terms Net 30Net 30Net 30 Please describe any additional fee & charges not listed above $0.00 Included as above Included as above Included as above 210 Days Bumper ‐to ‐ Bumper Drive Train Chassis Engine Transmission Transmission 3 year 3,600 hours As required $1,100 each $4,200 each Bid Closing Date: 1/21/1 6 Model Year: Model: 2016 Freightliner M2 112 Emission Components Sweeper Engine Sweeper Assembly 3 year Haaker Equipment Company La Verne, California DescriptionBidder Exceptions Cab & Chassis Make &Model Make: Bid No.: 4234 288 Arizona:Complete DescriptionResponse Non ‐Discrimination Policy:Complete Grand Total$1,061,250.13 If an incentive discount program has been included in the quote price, please describe:‐ If additional fees were indicated in Pricing Section, please describe:‐ Non Collusion:Complete Oaks:Incomplete Please explain all basic warranties listed: Cab Corrosion Frame Mar ‐co Equipment Company Pomona, California Bidder Exceptions 2016 Freightliner M2 112 See attached specs. Total vehicle length (inches) Incomplete Complete Sweeper Shop, a DBA of Pro Sales Group, Inc Upland, California Bidder Exceptions 2017 Freightliner M2 Conventional Chassis N/A N/A Response Complete Complete Response $871,425.00 $84,963.94 $956,388.94 Included as above Included as above As specified Response Complete Complete Incomplete Complete Response $766,200.00 $70,873.50 $849,860.25 None ‐ 3 year 36,000 miles, Chassis and Sweeper 5 year 60,000 miles, Chassis 5 year 60,000 miles, Chassis 5 year 60,000 miles, Chassis 5 year Unlimited miles, Chassis 5 year Unlimited miles, Chassis 5 year Unlimited miles, Chassis 3 year 3,600 hours Auxiliary Hydraulic System shall operate hydraulic system when auxiliary engine is off to raise gutter broom, pick ‐up head and dump hopper $2400 plus tax Broom assisted pick ‐up head PricingResponse Subtotal$971,396.00 Sales Tax (9.75%)$89,854.13 Options As specified Freightliner 24 months Bumper to Bumper/ Unlimited Mileage 24 months/ Unlimited Mileage 24 months/ Unlimited Mileage 24 months/ Unlimited Mileage 60 Months 60 Months 180 ‐240 Days210 Days 60 Months 3 year/ 2,500 Hours Allison trans ‐ 5 years/unlimited mileage $675 Sweeper Engine Sweeper warranty attachedN/A Please explain any other applicable warranties to this purchase 1 year or 2,000 Hours N/A Sweeper Engine Please state optional warranty offerings and costs Bumper ‐to ‐ Bumper N/A 3 year offeredTruck basic 5 year/150K miles $3,200 Chassis Engine Truck engine ‐ 5 years/150k miles $4,125 Business License Out ‐of City Business LicenseNo license neededOut ‐of City Business License Bid Description: Furnish and deliver two (2) new and unused truck ‐mounted regenerative air street sweepers, as required by Fleet Management Curb ‐to curb turning diameter (feet)50.5 GVWR:33,000 # Unladen weight without equipment and supplies 19,700 # Weight of equipment and supplies & water 22,000 # Wheelbase (inches)176 Please state guaranteed delivery date 33,000 19255 est 21350 est 184 279 23.4 Notes:Vendor priced out for two Diagnostic software totaling $2400 making the grand total $569,602.5 Additional abrasion protection $950.00 each Delivery Requirements As specifiedAs specifiedAs specified ‐ 180 ‐210 Days ARO