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Home My WebLink About17 - Compressed Natural Gas Refuse TrucksCITY OF NEWPORT BEACH CITY COUNCIL STAFF REPORT Agenda Item No. 17 July 14, 2009 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Mark Harmon, General Services Director 949 - 644 -3055 or mharmon @city.newport - beach.ca.us Homer Bludau, City Manager 949/644 -3000 or hbludauna city.newport- beach.ca.us SUBJECT: Authorization to Purchase Four (4) Compressed Natural Gas (CNG) Refuse Collection Trucks ISSUE: Should the City Council authorize the purchase of two (2) CNG front loader refuse collection trucks and two (2) CNG rear loader refuse collection trucks, and approve a budget amendment to supplement the funding of this purchase? RECOMMENDATION: Authorize the purchase of two (2) Autocar WXLL64 /ACX64 CNG front loader refuse collection trucks from Carmenita Truck Center in the amount of $244,461 apiece; authorize the purchase of two (2) Peterbilt 320 CNG rear loader refuse collection trucks from Rush Truck Center in the amount of $203,691 apiece; and approve the attached budget amendment transferring $154,000 from un- appropriated AQMD Fund surplus to Account 2766 -9108 (AQMD Division - Alternative Fuel Vehicles) to supplement the funding of this purchase. DISCUSSION: Background: City crews and equipment are responsible for servicing approximately 70% of the residential refuse collection accounts in Newport Beach. To accomplish this, the General Services Department utilizes two different type trucks; the front loader collection vehicle for wider streets in mostly single family residential areas, and the smaller rear loader truck designed to work in narrow alley ways and crowded streets. The City currently operates 25 of these refuse collection vehicles. CNG Refuse Collection Truck Purchase July 14, 2009 Page 2 In 2001, the Air Quality Management District (AQMD), concerned with air quality problems in the District, adopted several rules that mandate the type of vehicles agencies may purchase when replacing heavy equipment. AQMD Rule 1193 applies directly to refuse collection equipment, and requires that all new trucks purchased must be powered by a clean air fuel approved by AQMD. For heavy trucks, this fuel would be compressed natural gas (CNG), liquefied natural gas (LNG), or propane. Since the implementation of the AQMD requirements, the City has deferred replacing refuse collection equipment until such time as an alternative fuel program could be established. The two necessary components of an alternative fuel program are a fueling station and a fleet maintenance shop capable of working on natural gas vehicles. In June 2008, Council approved an agreement with Clean Energy, Inc., to install a CNG fueling station at the City Maintenance Yard. In addition to this the City Council, as part of the 2009/10 budget, approved funding for the renovation of the existing fleet maintenance shop to accommodate the maintenance and repairs of CNG equipment. The next step in the program is the purchase of replacement trucks that are powered by clean burning, CNG fuel. City Council Policy F -9 recommends the replacement of refuse collection vehicles every 8 years or 100,000 miles. Staff is recommending the replacement of the following vehicles with this purchase: Vehicle No. Year Mileage 5005 1996 89,000 5029 1994 126,000 5007 1994 128,500 5011 1994 120,000 The four trucks listed above have exceeded their established service capacity and have become unreliable and costly to maintain. Competitive Bids Front Loader Refuse Trucks- On May 5, 2009, the City received five proposals for front loader refuse collection trucks (attachment ii) per the specifications issued by the City. The lowest responsive bid for the two trucks was submitted by Carmenita Truck Center in the amount of $488,922, with a delivery date from 140 to 210 days. CNG Refuse Collection Truck Purchase July 14, 2009 Page 3 Rear Loader Refuse Trucks- On May 5, 2009, the City received eight proposals for rear loader refuse collection trucks (attachment iii) per the specifications issued by the City. The lowest responsive bid for the two trucks was submitted by Rush Truck Center in the amount of $407,382, with a delivery date of 150 days. Environmental Review: The City Council's approval of this item does not require environmental review. Public Notice: The agenda item has been noticed according to the Brown Act (72 hours in advance of meeting at which the City Council considers the item). Financial Information: The total cost for the purchase of the four refuse collection vehicles is $896,304. Staff is recommending the funding for the purchase of these vehicles come from two separate funding sources: FY2009/2010 Budget- The equipment replacement budget for this fiscal year includes $1,400,000 for the purchase of CNG alternative fuel equipment. Staff is recommending that $742,304 of these funds be directed towards the purchase of the new refuse trucks. AQMD Fund Surplus (2766 Funds)- Assembly Bill 2766 requires the Department of Motor Vehicles (DMV) to collect a registration surcharge of $4.00 per vehicle to fund clean air programs. Forty percent of the AB2766 funds collected by the DMV are returned to cities and counties to fund local programs that reduce air pollution. The current balance of the City's AQMD Surplus Fund is approximately $450,000. One of the most effective uses of these funds is to fund the differential cost between a clean air vehicle and the same vehicle using conventional fuel. Staff has determined, through discussions with the equipment manufacturers, that the extra cost of the four refuse trucks due to the CNG equipment is $154,000. - FY09110 Budgeted Funds: $742,304 - AQMD Fund Surplus: $154,000 TOTAL COST OF EQUIPMENT: $896,304 CNG Refuse Collection Truck Purchase July 14, 2009 Page 4 In addition to the above, staff has submitted a grant application to the AQMD to assist in funding this purchase. We will know the status of that application in approximately one month. Any grant funds received will reduce the impact to the Equipment Replacement Fund. Submitted by: D Homer Bluda City Manager Reviewed by: Prepared by: General Services Director � 4i r Dennis Danner Administrative Services Director Attachments: i. Budget Amendment ii. Front Loader Bid Results iii. Rear Loader Bid Results RECAPITULATION FOR: (2) CNG- Equipped Front - Loading Refuse Trucks RFP NO. 4 -22 P.O. NO. 30_ A total of five (5) Proposals were received from three (3) firms that provide CNG- Equipped Refuse Trucks The results are shown below: SubTotal Carmenita Rush Truck Carmenita Truck Los Angeles Los Angeles Tax Truck Center Center Center Freightliner Freightliner Tire Recycling Fee James Kevin James Ron Ron Delivery Charges Blakely Voss Blakely Creighton Creighton Cab /Chassis Aulocar WXLL64 Peterbilt 320 Aulocar WXLL64 Autocar ACX64 Aulocar ACX64 Body Mammoth Weslem New Way Mammoth Amrep New Way Mammoth Amrep Quantity 1 220,644.00 224,800.00 228,935.00 229,388.00 234,535.00 2 441,288.00 449,600.00 457,870.00 458,776.00 469,070.00 SubTotal 441,288.00 449,600.00 457,870.00 458,776.00 469,070.00 Tax 38,612.70 39,340.00 40,063.63 40,142.90 41,043.63 Tire Recycling Fee 21.00 21.00 21.00 21.00 21.00 Delivery Charges 9,000.00 0.00 0.00 0.00 0.00 Total $488.921.70 $488.961.00 $497.954.63 $498.939.90 $510.134.63 Rank LOWEST 2nd Lowest Difference LOWEST $39.30 Terns Net 30 Days Net 30 Days Delivery 140 -210 Days 150 Days Quote # 3rd Lowest 4th Lowest HIGHEST $9,032.92 $10,018.20 $21,212.93 Net 30 Days Net 30 Days Net 30 Days 140 -210 Days 180 -220 Days 210 Days Notes: 1. The Cab /Chassis and Body for each proposal are listed above. RECAPITULATION FOR: .(2) CNG- Equipped Rear- Loading Refuse Trucks RFP NO. 4-23 P.O. NO. 30_ A total of eight (8) Proposals were received from three (3) firms that provide CNG- Equipped Refuse Trucks The results are shown below. Rush Truck Rush Truck Carmenita Truck Rush Truck Carmenita Truck Carmenita Los Angeles Los Angeles Center Center Center Center Center Truck Center Freightllner Frelghlliner Kevin Kevin James K.V. 3atras lames Ron Ron Vets Voss Blakely Voss Blakely Blakely Creghton Creighmn Cab /Chassis Peteralit $20 Pelelbie 320 Aulocar ACX42 Peta,pli 320 Autaar ACX42 Aut%ar ACX42 A.ulocar ACX42 Autocar ACX42 Body Peck.MO RIM New Way Viper 13 Pak -Mor R lee New Way Viper t6 Naw Way Viper 13 New Way Viperie New Way Viperl6 McNeilus McVi,Pak Quantity 1 186,759.00 187,292.00 184,492.00 189,190.00 185,100,00 166,923.00 196,124.00 198,336.00 2 373,518.00 374,584.00 368,984.00 378,380.00 370,2011.00 373,846.00 392,248.00 392,672.00 SubTotal 373 518.00 374,584.00 368,994.00 378,380.00 370,200.00 373,846.00 392,248.00 392,672.00 Tax 32,682.83 32,778,10 32,286.10 33,108.25 32,392.50 32,711,53 34,321.70 34,358.80 Tire Recycling Fee 21.00 21.00 21.00 21.00 21.00 21.00 21.00 21.00 Delivery Charges 0.00 0.00 9,000.00 0.00 9,000.00 9,000,00 0.00 0,00 Total $408,221.83 $407,381.10 $410,291.10 $411,509.25 $411,613.50 $415,578.53 $428,590.70 $427,051.80 Rank LOWEST 2nd Lowest 3rd Lowest 4th Lowest 5th Lowest 6th Lowest 7th Lowest HIGHEST Difference LOWEST $1,159.27 $4,069.27 $5,287.42 $5.391.67 $9,356.70 $20,368.88 $20,829.98 Terms Net 30 Days Net 30 Days Net 30 Days Net 30 Days Net 30 Days Net 30 Days Net 30 Days Net 30 Days Delivery 150 Days 150 Days 140 -260 Days 150 Days 140.260 Days 140 -210 Days 180.210 Days 180 Days Quote # Notes: 1. The CahiChassis and Body for each proposal are listed above. City of Newport Beach NO. BA- 10BA -002 BUDGET AMENDMENT 2009 -10 EFFECT ON BUDGETARY FUND BALANCE: Increase Revenue Estimates X Increase Expenditure Appropriations AND Transfer Budget Appropriations SOURCE: from existing budget appropriations from additional estimated revenues PX from unappropriated fund balance r ivn: This budget amendment is requested to provide for the following: AMOUNT: $1sa,000.00 Increase in Budgetary Fund Balance X Decrease in Budgetary Fund Balance No effect on Budgetary Fund Balance To increase expenditure appropriations from the AQMD fund balance to supplement funding for the purchase of four CNG refuse trucks. ACCOUNTING ENTRY: BUDGETARY FUND BALANCE Fund Account 290 3605 REVENUE ESTIMATES (3601) Fund /Division Account EXPENDITURE APPROPRIATIONS (3603) Description AQMD - Fund Balance Description Signed: Signed: Signed: Services Director City Manager Cu=- ,i Debit Credit $154,000.00 - Automatic $154,000.00 Date ate City Council Approval City Clerk Date Description Division Number 2766 AQMD Account Number 9108 Alternative Fuel Vehicles Division Number Account Number Division Number Account Number Division Number Account Number Signed: Signed: Signed: Services Director City Manager Cu=- ,i Debit Credit $154,000.00 - Automatic $154,000.00 Date ate City Council Approval City Clerk Date