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CC- Approval of a Purchase Order with McNeilus Truck and Manufacturing Inc. for the Replacement of On-Vehicle Compressed Natural Gas Tank Cylinders for an Amount Not-to-Exceed $504,190 ($490,204 Base Proposal Plus $14,706 in Contingency Authority)
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Contact Person/Dept: Paul Condran/Transportation
Phone Number: (310) 253-6520
Fiscal Impact: Yes [X] No [] General Fund: Yes [] No [X]
Public Hearing: [] Action Item: [] Attachments: Yes [] No [X]
Commission Action Required: Yes [] No [X] Date:
Commission Name:
Public Notification: (E-Mail) Meetings and Agendas - City Council (05/17/16)
Department Approval: Art Ida (5/12/16)
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RECOMMENDATION
Staff recommends the City Council approve a purchase order with McNeilus Truck & Manufacturing Inc. in an amount not-to-exceed $504,910 ($490,204 Base Proposal Plus $14,706 in Contingency Authority) for the replacement of ninety-six (96) on-vehicle compressed natural gas (CNG) tank cylinders.
BACKGROUND
For nearly twenty years, Culver City has owned and operated Compressed Natural Gas (CNG) vehicles. Today, the City operates a fleet of approximately 100 CNG vehicles, and in Fiscal Year 2014-15 CNG accounted for more than 80% of the City’s total dispensed fuel.
Pursuant to the National Fire Protection Association Codes and Standards, NFPA-52, and the Natural Gas Vehicle Regulations 2nd Edition (NGV2), CNG tank manufacturers must list the expiration dates on each CNG tank cylinder. These cylinders generally last for fifteen years, and expire at the manufacturer’s end-of-life dates. Unless the tanks are replaced, these CNG vehicles are required to be taken out of service. Culver City is in possession of twelve transit buses (seven tanks per vehicle) and two refuse vehicles (four tanks per vehicle) that are approaching their tank cylinder expiration date of July 2016. New natural gas fuel cylinder tanks are certified for twenty years.
DISCUSSION
On March 15, 2016, staff released a Request for Proposals (RFP #1591) to qualified firms to remove and dispose of expiring tanks, to purchase and install new tanks, to test and certify the newly installed tanks, and to prepare and submit the documentation necessary for tank certification. Additionally, the request was posted on the City’s website, and published in the March 17, 2016 edition of the Culver City News.
Two (2) contractors responded with the following proposals:
Complete Coach Works
Cost per Transit Bus - $35,693.89
Total Cost for Twelve (12) Transit Buses - $428,326.68
Cost per Refuse Vehicle - $20,614.17
Total Cost for Two (2) Refuse Vehicles - $41,228.34
Tax - $37,033.14
Total Cost: $506,588.16
McNeilus Truck & Manufacturing, Inc.
Cost per Transit Bus (before discount*) - $35,392.75
Total Cost for Twelve (12) Transit Buses (after discount*) - $420,465.87
Total Cost per Refuse Vehicle - $16,739.12
Total Cost for Two (2) Refuse Vehicles - $33,478.24
Tax - $36,259.72
*The Vendor is offering a 1% discount on each of the 12 buses.
Total Cost (after discount*): $490,203.83
Staff reviewed both proposals, and found the proposal documents submitted by McNeilus Truck & Manufacturing Inc. to be the most responsive and complete. Transportation Department staff recommends McNeilus Truck & Manufacturing Inc. be awarded the project for the natural tank replacements.
FISCAL ANALYSIS
Sufficient funding is available for tank replacements on transit buses in Transportation Account number 20370300.732120. Sufficient funding for tank replacements on refuse vehicles is available from Refuse Fund account number 20260400.600800.
Summary total of anticipated expenses under these terms:
Base Proposal: $490,204
3% Contingency: $ 14,706
Total Contract Expense: $504,910
ATTACHMENTS
None
RECOMMENDED MOTIONS
That the City Council:
1) Approve a purchase order with McNeilus Truck & Manufacturing Inc. in an amount not-to-exceed $504,910 ($490,204 base proposal plus $14,706 in contingency authority) for the replacement of on-vehicle compressed natural gas tank cylinders; and,
2) Authorize the City Attorney to review/prepare the necessary documents; and,
3) Authorize the City Manager to execute such documents on behalf of the City.