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Home My WebLink About05 PURCHASE SWEEPERS 11-15-04 AGENDA REPORT Agenda Item 5 Reviewed: tß: City Manager Finance Director MEETING DATE: NOVEMBER 15, 2004 TO: FROM: WILLIAM H. HUSTON, CITY MANAGER PUBLIC WORKS DEPARTMENT / FIELD SERVICES DIVISION SUBJECT: CAPITAL PURCHASE / BIDDING EXCEPTION FOR PURCHASE OF TWO ALTERNATIVE FUEL (PROPANE) STREET SWEEPERS SUMMARY The City's Field Services Division is proposing to purchase two alternative fuel (propane) street sweepers by utilizing the competitive bid process used by the County of Los Angeles for similar sweepers. An exception to the City's Purchasing Policy and Regulations is also requested to accommodate this purchase. RECOMMENDATION It is recommended that the City Council approve an exception to the City's Purchasing Policy and Regulations in accordance with Section 1624 of the Purchasing Rules and Regulations and award the purchase of two alternative fuel street sweepers to Haaker Equipment Company for a total cost of $380,771.26. FISCAL IMPACT The City's Vehicle Lease Fund for Fiscal Year 2004-2005 provides adequate funds for the purchase of two alternative fuel street sweepers. By utilizing the competitive bid process from the County of Los Angeles, the two proposed alternative fuel street sweepers will be purchased for a total cost of $380,771.26, including all additions, deletions and tax. BACKGROUND The City's Vehicle Lease Fund scheduled two street sweepers to be replaced in Fiscal Year 2001- 2002. The South Coast Air Quality Management District (SCAQMD) proposed a new Fleet Rule (1186.1) requiring all public agencies to purchase an alternative fuel engine after June 30, 2002. The SCAQMD recognized the possible cost increase of purchasing alternative fuel street sweepers and has indicated their willingness to work with local agencies to provide supplemental funds for any cost increases. During the last two years staff has worked with the SCAQMD to receive supplemental funds from various programs for this incremental cost, but for a number of reasons has had no success to date in securing such additional funding. Additionally, staff has been requesting additional monies be added to the Lease Fund to help make up for the cost increases and has postponed the purchase of the two sweepers while pursuing supplemental funds. The incremental cost for alternative fuel engines is estimated to be about $50,000 per sweeper. S""O "RV"OS""m'. ",.MGEND' HEMS"""m,",,"" S"""""",..R" 'w~.'oc Capital Purchase/Bidding Exception for Purchase of Two Alternative Fuel (Propane) Street Sweepers November 15,2004 Page 2 The City's Field Services Maintenance Facility has an existing alternative fuel (propane) source. Other alternative fuel sources are expensive to construct and not within a reasonable distance to the City. The City's only viable alternative fuel option for the purchase of alternative fuel street sweepers is propane. Staff requested a courtesy quote for two alternative fuel street sweepers in July 2003 from Haaker Equipment Company. The quote was for a total of $417,811.40, which was approximately $37,000 more than the cost utilizing the County of Los Angeles' bid process. There have been at least two price increases since the July 2003 quote due to the increasing costs of steel and manufactured parts for an alternative fuel street sweepers. To avoid a price increase from Haaker Equipment Company, the purchase of two alternative fuel street sweepers needed to be completed by October 31, 2004. However Haaker Equipment Company agreed to honor the bid price solicited by the County of Los Angeles for their potential purchase of five alternative fuel street sweepers if the City of Tustin would provide them with an Intent to Purchase Statement (See attached Haaker Proposal). Staff provided the Intent to Purchase Statement noting that ultimately the Tustin City Council would provide the final decision to purchase the two alternative fuel street sweepers. Haaker Equipment Company agreed to honor the purchase price until the Tustin City Council made their final decision. Staff has reviewed Los Angeles County's bid process and has determined that it is similar in principle to that of the City of Tustin. Staff has also reviewed the Los Angeles County alternative fuel street sweeper specification and has determined that it is similar to the City of Tustin's needs, with minor modifications for certain items. The City of Tustin has requested an add/delete modification resulting in a $681.00 price reduction from the County of Los Angeles' bid price. It is recommended that the Tustin City Council approve an award of contract to Haaker Equipment Company to purchase two alternative fuel (propane) street sweepers for a total cost of $380,771.26 and approve an exception to Section 1624 of the City's PurchasilJ Rules & Regulations. cz;;¿. ~ ¡Ç ~ ¿ rÞc. Tim D. Serle( Director of Public Works/City Engineer JJ~ ~~ Wisam Altowaiji Field Services Manager Attachment: Haaker Equipment Company Proposal S"".,C.~ci"'~'"OO'C~ci""=""",...."M'=",'",'",'Sw,,,,.Ooc HAAKER EQUIPMENT COMPANY -. . SINCE 1972 A C~LIFORNIA CORPORATION 2070 N. WHITE AVENUE LA VERNE, CALIFORNIA 91750 (909) 598-2708 . FAX (909) 598-1427 PARTS DEPT. FAX (909) 594-0498 www.haaker.com (ØJ October 22, 2004 Mr. Sam Altowaiji Field Services Manager CITY OF TUSTIN 300 Centennial Way Tustin, California 92780 Fax: (714) 259-8128 Dear Sam, Haaker Equipment Company is pleased to offer the City of Tustin an add-on purchase of Two (2) ELGIN Crosswind LPG p<>wered street sweepers to the following: Los .Angeles County AGPS, Int;)rnal Services Department, Purchase Order No. 31047454, dated 6/4YØ4. Purchase Order Amount Sweeper Per Los Angeles County Specification .................................$ 177,373.00 California Sales Tax @ 8.2;;%............................................................... 14.633.27 Total Amount Of Order .......................................................................$ 192,006.27 The following are additions and deletions to meet the City of Tustin's Technical Specifications for Two (2) LPG Six Wheel Regenerative Air Street Sweepers. Additional Items ,¡ Smart Back.Up Alarm ,¡ Bendix AD-9 Air Dryer ,¡ Dual Horns ,¡ Three (3) Key Sets ,¡ Perry Water Conditioner ,¡ Hydraulic Oil Temperature Gauge ,¡ Two (2) Inspection Doors ,¡ Hopper Lining ,¡ Beacon With Guard Additional Items Subtotal........................................................................$ 6,315.00 :. ~ e e Deleted Items ,¡ Tachograph ,¡ Hydraulic Oil Low Level Shutdown ,¡ Rear Hood ,¡ Spotlights ,¡ Extra Gutter Broom Lights ,¡ SMV ,¡ Arm Rests ,¡ Tool Kit ,¡ Step Modification ,¡ Floor Mats ,¡ Hydraulic Tilt Cab ,¡ Weigh Units ,¡ Hopper Up Alarm ,¡ Extra Gutterbrooms ,¡ Double Wide Drag Shoes ,¡ Center Broom Deleted Items Subtotal........................................................................... ($ 6,996.00) Total Items Difference (Delete) ........................................................"............ ($ 681.00) Los Angeles County Sweeper Price..........................................................$ 177,373.00 Total Deletions............................................................................................. (681.00) Add-on Price to City of Tustin...................................................................$ 176,692.00 California SalesTax @ 7.75%.................................................................... 13.693.63 TOTAL F.O.B. TUSTIN, CA: ................................................................$ 190,385.63 , Optional Items 1. 9.14: 9.15, 9.16 and 9.18 - Hydraulic Wandering Hose..........................$ 2,795.00 + Sales Tax 2. 9.22 - Two 4' Tube On Rear ...................................................................$ 1,166.00 + Sales Tax 3. 23.0 - Fleet Minder Base And Software (One Required)........................$ 1,167.00 + Sales Tax 4. 23.0 - Fleet Minder equipment per unit...................................................$ 1,855.00 + Sales Tax Due to a price increase ITom Elgin Sweeper Company on October 1, 2004 that is not in this price, our offer is good until October 31, 2004. After November 1, 2004 the price increase of $ 6,932.00 will be added to the total cost. Thank you for your consideration and we look forward to your response. PS/cyh