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SR 12-18-2018 3B City Council Report City Council Meeting: December 18, 2018 Agenda Item: 3.B 1 of 6 To: Mayor and City Council From: Susan Cline, Director, Public Works, Street & Fleet Services Subject: Award Bid to Canadian Electric Vehicles Ltd. for the Purchase of up to 31 Might-E Electric Trucks Recommended Action Staff recommends that the City Council: 1. Award Bid #4299 to Canadian Electric Vehicles Ltd., a Canadian-based company, for the purchase and delivery of 25 Might-E Truck vehicles for the Public Works and Housing and Economic Development departments; and 2. Authorize the Procurement Manager to issue a purchase order with Canadian Electric Vehicles Ltd. for the purchase and delivery of 25 Might-E Truck vehicles in the amount not to exceed $1,383,995, with future year funding contingent on Council budget approval; and 3. Authorize the Procurement Manager to issue any necessary change orders to the purchase order in an amount not to exceed $332,159 for the purchase of up to an additional six vehicles for an additional 12 months after receipt of the purchase order, at the same price, terms and conditions. This would result in a revised purchase order total amount not to exceed $1,716,154, with future year funding contingent on Council budget approval. Summary Staff within various City divisions use neighborhood electric vehicle (NEV) dump-body trucks to transport equipment and materials, empty trash cans and pick up litter, and clean amenities in the downtown district. Staff also uses NEVs for weed abatement and to clean trash bin rooms in and around parking structures. This purchase would replace 25 electric vehicles that have reached the end of their cost-effective, useful life. In addition, staff is requesting the authority to purchase up to six additional trucks if necessary, to replace units that may be damaged beyond repair during City activities over the next 12 months. Staff recommends Canadian Electric Vehicles Ltd. as the best and only bidder for the purchase and delivery of up to 31 Might-E Truck Electric Vehicles with customized dump beds for a total amount not to exceed $1,716,154. This 2 of 6 purchase meets the goals of the City’s Reduced-Emissions Fuels Policy by utilizing vehicles powered by electricity. Discussion The City replaces vehicles that have reached the end of their cost-effective useful life based on age, mileage, and repair history in accordance with the Vehicle Replacement Program. In October 2018, the City solicited bids for the purchase of 25 electric- powered Might-E Truck neighborhood electric vehicles, or equal, with the option to purchase up to six additional NEVs at the same price, terms, and conditions. Additional purchasing language is included in the bid specification to allow for the procurement of an identical vehicle if, and when, additional vehicles are approved for replacement during the procurement process within the next 12 months. The Might-E Truck with dump bed specifications were developed considering the City’s Sustainable Fleet Administrative Instruction, as well as the user group’s operational requirements. Various electric vehicles were tested during the previous bid for extended battery life, reliability, reduced maintenance costs, and safety, by Park Maintenance and Promenade Maintenance including Miles, E-Rides, GEM, Mighty Truck, Advantage, and FireFly. Another vendor was chosen to supply the FireFly vehicle, but due to organizational changes, it was not able to produce or deliver the units to the City. The specifications in this bid included language requesting bids for the Might-E Truck vehicle, or an equivalent vehicle, giving vendors the option to take exception to or propose an alternative vehicle to meet the minimum requirements in order to meet operational needs. Based on the evaluation of the six vehicle types noted above, the Might-E Truck was the next vehicle model chosen, based on its quality and sturdiness. The base unit price for these vehicles is $41,659, including additional key sets and delivery. The average option pricing cost for each vehicle is $8,854, and includes items such as the dump body, a battery monitoring system, specialized tires to meet the functional requirements of each vehicle application, and a heavy-duty axle upgrade. This purchase would replace four vehicles used by staff in various divisions to haul equipment and supplies used as part of Cemetery, Farmers Market, and Pier Maintenance activities. Another seven vehicles would be used by Promenade 3 of 6 Maintenance staff in the downtown area to perform tasks that include emptying trash cans, picking up litter, cleaning amenities in the district, performing weed abatement, and cleaning trash bin rooms in the parking structures. These vehicles would be used by various maintenance workers and equipment operators and are not assigned to any one individual. The vehicles would be used during two shifts, seven days per week, year-round. The final 14 vehicles would be used by Park Maintenance staff to transport equipment and materials necessary to maintain 13 parks throughout the City as assigned below: 1. Marine Park – 1 Groundskeeper 2. Crescent Bay Park and Barnard Linear Park – 1 Groundskeeper 3. South Beach Park and Beach Park I – 1 Groundskeeper 4. Ocean View Park – 1 Groundskeeper 5. Reed Park – 1 Groundskeeper 6. Douglas Park – 1 Groundskeeper 7. Virginia Ave Park – 1 Groundskeeper 8. Memorial Park – 1 Groundskeeper 9. Hotchkiss Park and Joslyn Park – 1 Groundskeeper 10. Five sections of Palisades Park – 5 Groundskeepers The vehicles recommended for replacement were purchased between March 2008 and April 2014 and are between five and 10 years old. They have a cost-effective useful life span of six years based on industry standards, utilization, and the environment in which they are operated. The vehicle data table below shows the vehicle unit number, model year, cost-effective useful life, age, fuel type, replacement fiscal year, original cost, total maintenance cost over the life of the vehicle, and the percentage of the original cost that the maintenance cost has reached. 4 of 6 Replacing Unit # Model Year Age Original Cost Total Maintenance Cost % Maint. Cost to Original Cost 16098 2008 10 $29,811 $92,489 310% 16189 2008 10 $23,706 $32,698 138% 16190 2008 10 $23,706 $57,685 243% 16210 2008 10 $24,504 $25,007 102% 16211 2008 10 $25,327 $40,030 158% 16212 2008 10 $24,504 $31,063 127% 16213 2008 10 $24,504 $30,273 124% 16214 2008 10 $25,327 $31,262 123% 16215 2008 10 $24,504 $51,245 209% 16216 2008 10 $24,504 $51,907 212% 16217 2008 10 $24,504 $34,692 142% 16218 2008 10 $25,327 $35,596 141% 16219 2008 10 $24,504 $21,983 90% 16220 2008 10 $24,504 $34,619 141% 16221 2008 10 $25,327 $39,011 154% 16222 2008 10 $25,327 $29,641 117% 16297* 2009 9 $98,812 $17,727 18% 20073 2011 7 $18,182 $11,139 61% 20185 2009 9 $12,920 $34,335 266% 20186 2009 9 $12,920 $31,552 244% 20187 2009 9 $12,920 $57,405 444% 20276 2014 5 $39,661 $48,144 121% 20277 2014 5 $39,661 $39,899 101% 20278 2014 5 $39,661 $41,336 104% 20279 2014 5 $39,661 $35,561 90% *Unit 16297 is a 2009 Electric Ford Ranger Pickup Truck. The high original cost is due to the cost to retrofit an unleaded Ford Ranger to an electric Ford Ranger. The unit will no longer hold a charge long enough for staff to transport equipment from one location to another and is almost never used. This has negatively affected the efficiency of Park Maintenance’s day-to-day operations. In addition, Ford and the subcontractor no longer provide repair and parts support for this unit. Staff attempted to replace 17 of these vehicles in FY2016-17 with a different vendor, but the vendor was unable to produce the vehicles due to organizational changes within the company, and the purchase order was terminated. Staff do not anticipate the same problem with Canadian Electric Vehicles, Ltd. They were able to define a clear delivery schedule in their bid, and stated that production on the next model would begin on 5 of 6 January 15, 2019. Since then, another eight vehicles have been approved for replacement by the Director of Public Works. Vendor Selection The locations in which these vehicles are used include the Municipal Pier, City parks, the downtown district, including the 3rd St Promenade, the Cemetery, and the Farmers’ Markets. As such, full-size trucks are not appropriate to navigate in the locations with tighter spaces and greater foot traffic. These smaller neighborhood electric trucks are purpose-built with dump bodies to transport and dump various materials. They also need a tighter turning radius when driving in smaller, congested areas. Of the six vehicles reviewed, one is now no longer made and three had issues with either a weak turning radius, or they did not offer a dump body. This creates a very limited marketplace to purchase vehicles that meet the functional requirements of the City. Bid Data Bid Posting Date Bid Posted On Bid Advertised In (City Charter & Municipal Code) # of Vendors Downloaded # of Submittals Received Date Publicly Opened 10/04/2018 City's Online Bidding Site Santa Monica Daily Press 10 1 10/23/2018 Submittals Received Selection Criteria Canadian Electric Vehicles Ltd. $1,255,324 Municipal Code SMMC 2.24.072 Evaluation Criteria Price, previous experience, ability to deliver, quality of product, and compliance with City specifications. Best and Only Bidder Canadian Electric Vehicles Ltd. Additional Vendor Outreach and Justification to Award Procurement conducted additional outreach to vendors who downloaded the bid to see why they did not submit a bid, and no responses were received. Canadian Electric Vehicles Ltd. met all substantial aspects of the bid specifications. Exceptions were taken related to model year changes and producing improvements to the vehicles. They offered the option to purchase an additional six vehicles within a 12-month period, if necessary. Based on these criteria, Canadian Electric Vehicles Ltd. is recommended as the best and only bidder. 6 of 6 Financial Impacts and Budget Actions Staff seeks authority to award a purchase order with Canadian Electric Vehicles Ltd. for the purchase of up to 31 Might-E Truck neighborhood electric vehicles. Purchase Order Request Request Amount FY 2018-19 Budget CIP Account # Total Purchase Order Amount $1,716,154 C7000010.689000 $1,716,154 Since this is a Canadian-based company, the City would pay the taxes on the purchase in the amount of $128,671 directly to the Board of Equalization, resulting in a requested amount of $1,716,154. Future year funding is contingent on Council budget approval. Prepared By: Ryan Kraemer, Senior Administrative Analyst Approved Forwarded to Council Attachments: A. Canadian Electric Vehicles Ltd Oaks Form