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HomeMy WebLinkAboutStaff Report 446-09TO: HONORABLE CITY COUNCIL FROM: CITY MANAGER DEPARTMENT: PUBLIC WORKS DATE: DECEMBER 7, 2009 CMR:446:09 REPORT TYPE: CONSENT SUBJECT: Approval of a Purchase Order with Ironman Parts and Services in an Amount Not to Exceed $14,932 and a Purchase Order with Peterson Power Systems in an Amount Not to Exceed $261,567 for the Purchase and Installation of Diesel Emissions Retrofit Devices on a Total of Ten Heavy Duty Diesel Powered Trucks RECOMMENDA TION Staff recommends that Council: 1. Approve and authorize the City Manager or his designee to execute a purchase order with Ironman Parts and Services in the amount of $14,931.20; for the purchase and installation of a required best available control technology (BACT) diesel emissions retrofit device, cQmmonlyknown as a diesel particulate filter (DPF) on one heavy duty diesel powered truck. 2. Approve and authorize the City Manager or his designee to execute a purchase order with Peterson Power Systems in the amount of $261,566.19; for the purchase and installation of required best available control technology (BACT) diesel emissions retrofit devices, commonly known as diesel particulate filters (DPF) on a total of nine heavy duty diesel powered trucks. DISCUSSION The California Air Resources Board (CARB), established in 1967, requires the installation of diesel emission retrofit devices on certain City-owned heavy duty diesel powered trucks. California is the only state that is currently pennitted to have such a regulatory agency. The stated goals of the CARB include: attaining and maintaining healthy air quality; protecting the public from exposure to toxic air contaminants; and providing innovative approaches for complying with air pollution rules and regulations Diesel exhaUst contains a variety of harmful gases and over 40 other known cancer-causing compounds. In 1998, California identified diesel particulate matter as a toxic air contaminant based on its potential to cause cancer, premature death, and other health problems. The CARB Fleet Rule for Public Agencies and Utilities specifies compliance deadlines for installation of best available control technology (BACT), also known as diesel particulate tilters (DPF) on medium duty and heavy duty diesel powered vehicles. At the time the CARB diesel emissions reduction rules were established, the City's fleet included 51 vehicles that were subject to the regulations. The 51 vehicles are divided into three groups, CMR:446:09 Page I of3 based on engine production year. Group 1 consists of vehicles from 1960-1987, Group 2 from 1988-2002, and Group 3 from 2003-2006. The CARB Fleet Rule requires that 60% of the vehicles in each group be retrofitted with BACT devices by the compliance deadline of December 31,2009 and that the remaining vehicles be retrofitted by December 31,2011. The City's fleet includes one vehicle in Group 1, 36 vehicles in Group 2, and 14 vehicles in Group 3. The vehicle in Group 1 has a low use exemption. This exemption applies to vehicles which travel less than 1,000 miles per year and operate less than 100 hours per year. The 60% rule for Group 2 requires that 22 of the 36 vehicles be in compliance by December 31, 2009. Currently, eight vehicles have been retrofitted, 10 have been retired, two have been scrapped, and two have low use exemptions. No action is required for Group 2 at this time. The 14 remaining vehicles in Group 2 must be compliant by December 31, 2011. We anticipate that eight of those vehicles will remain in the fleet, and the other six will be retired. None of the 14 vehicles in Group 3 have been retrofitted. At this time, we intend to retrofit 10 of the Group 3 vehicles with the CARB required diesel particulate filters. The four remaining vehicles in Group 3 will require the installation of retrofit devices by December 31, 2011. Vehicle Replacement Fund Capital Improvement Project VR-07002 was established to facilitate compliance with the CARB requirements; it authorizes the purchase and installation of diesel emission retrofit devices for City-owned heavy duty diesel powered trucks. A Request for Quotation (RFQ) for diesel emissions retrofit devices was sent to 13 vendors on October 15, 2009. Bids were received from five qualified vendors on November 10, 2009 as listed on the attached bid summary (Attachment A). Bids ranged from a high of $291,519 of $120,342 (the low bidder did not bid all items). Staff has reviewed all bids submitted and recommends that the bids submitted by Ironman Parts and Services (item #1 only) and Peterson Power Systems (items #2 through #10) be accepted and that Ironman Parts and Services and Peterson Power Systems be declared the lowest responsible bidders. The base bid from A-Z Bus Sales did not meet specifications, therefore their bid was considered non-responsive. Western Truck Center did not bid on all items therefore their bid was considered non-responsive. The bid from Ironman Parts and Services was the lowest bid for item #1. Their DPF devices did not meet specifications for items #2 through #10. The bid from Peterson Power Systems was the lowest bid for items #2 through #10 meeting all the specifications. Staff has checked references supplied by the vendor for previous contracts and has found no significant complaints. RESOURCE IMPACT Funds have been budgeted for this purchase order In Vehicle Replacement Fund Capital Improvement Project VR-07002. CMR:446:09 Page 2 of3 POLICY IMPLICATIONS 'Ibis project furthers several initiatives outlined in the City's Comprehensive Plan. These initiatives include Policy N-21, Policy N-26, and Program N-27. ENVIRONMENTAL REVIEW This project is exempt under Section 15301 of the CEQA Guidelines. ATTACHMENTS Attachment A: Bid Summary PREPARED BY: DEPARTMENT HEAD: CITY MANAGER APPROVAL: CMR:446:09 JOHN MORAN 7lJ~-- GLENN S. ROBERTS Director of Public Works CityN,Ia~ Page 3 of3 BID SUMMARY Diesel Emissions Retrofit Installation RFQ134327 Western Truck Center A-Z Bus Sales A-Z Bus Sales (Alternate Bid) Emissions Retrofit Group Peterson Power Systems Ironman Parts and Service ATTACHMENT A Bid Total $120,341.55 Bid Total $192,600.00 Bid Total $306,233.09 Bid Total $291,519.04 Bid Total $261,566.19 Bid Total $152,559.62