SR 12-18-2018 3B
City Council
Report
City Council Meeting: December 18, 2018
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 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
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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
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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.
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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
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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.
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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