City Council
Report
City Council Meeting: April 26, 2022
Agenda Item: 3.F
1 of 4
To: Mayor and City Council
From: Edward F King, Director, Department of Transportation, Transit Maintenance Subject: Award Bid and Enter into Agreement with 3L Executive Services to provide bus fuel system repairs for Department of Transportation Recommended Action
Staff recommends that the City Council:
1. Award Bid # 4420 to 3L Executive Services for inspection and repairs of transit bus compressed natural gas fuel systems and tanks for the Department of Transportation and Fleet Management.
2. Authorize the City Manager to negotiate and execute an agreement with 3L Executive Services, in an amount not to exceed $856,568 which includes a $77,870 contingency over a five-year period with future year funding contingent on Council budget approval.
Executive Summary
The City of Santa Monica’s Department of Transportation (DOT) operates 176 transit buses fueled by renewable natural gas. These buses operate on compressed natural gas (CNG) which is stored in high-pressure tanks at pressures up to 3,600 pounds per square inch (PSI). Due to the inherent risk associated with high-pressure storage of natural gas, CNG tanks must be inspected annually to ensure their safe operating condition. In addition, CNG tanks and other fuel system components need periodic repairs and replacement to address wear and damage that occur in the normal operation of CNG buses and vehicles. Staff recommends awarding Bid #4420 to 3L Executive Services (3L) to provide inspection and repair services to DOT and Public Works Fleet Management natural gas-powered vehicles. The award to 3L would allow these departments to maintain their CNG fleets’ safety sensitive fuel systems in a state of good repair. The agreement for five years would be in an amount not to exceed 2 of 4
$152,650 for the first year, with the total five-year contract amount not to exceed $856,568, which includes a 10% contingency and a 3% cost escalator in year four and a 4% cost escalator in year five.
Discussion
DOT operates a fleet of 176 buses that operate using compressed natural gas fuel stored in pressurized tanks on the buses’ roofs. Public Works’ fleet of CNG vehicles include an additional 237 sedans, trucks, cargo vans, trash trucks, dump trucks, tool trucks, water trucks, and sewer jetter vehicles. In addition to the CNG tanks, which store fuel at pressures up to 3,600 PSI, the buses’ fuel systems include other components and high-pressure lines that are subject to wear under normal operating conditions.
Regular inspections are necessary to ensure that all safety devices in the fuel systems are working properly to prevent fuel leaks and to maintain the fuel system in a state of good repair. The vendor would be responsible for annual inspections of CNG fuel tanks, repairs and replacement of damaged fuel tanks, and inspections and repairs to the fuel systems on transit buses.
DOT and Fleet Management have historically contracted fuel system repairs due to the need for specialized technical skills and certifications for CNG tank inspections, space required to remove and replace damaged or inoperable fuel tanks, and special capital equipment needed to remove, refurbish, or replace fuel tanks in accordance with guidance set forth in the “Contract and As-Needed Staffing Review Policy, Practice, Recommendations” report approved by Council on January 13th, 2015. Bid #4420 requires the vendor to provide the facilities and equipment needed to remove and replace CNG tanks saving the City costs associated with the purchase, storage, and replacement of equipment. Based on the need for additional staff, training, space and equipment, staff recommends award of Bid #4420 to 3L executive services.
Vendor Selection
Bidder Recommendation
Best Bidder 3L Executive Services
Evaluation Criteria Price, quality of services offered, ability to perform all 3 of 4
services, bidder experience and history providing these services to the Department of Transportation
Municipal Code SMMC 2.24.180
Submittals Received
3L Executive Services $ 856,568
Specialty Fleet Services $ 984,890
Bid Data
Date
Posted Posted On
Advertised in
(City Charter & SMMC)
Vendors
Downloaded
Date Publicly
Opened
1/12/2022 ProcureNow
Santa Monica Daily
Press 12 1/26/2022
Best Bidder Justification
Bids were evaluated based on the criteria in SMMC 2.24.180 including price, ability to provide the services according to City specifications included in the bid, experience, reputation, and training of the bidder. 3L Executive services was the lowest cost bidder. Additionally, they have a positive history providing this service to the Department of Transportation with no complaints regarding their workmanship.
Financial Impacts and Budget Actions
Staff seeks authority to approve funding from the DOT’s Big Blue Bus fund and the Vehicle Management fund to award a contract with 3L Executive Services to provide repairs to CNG fuel system on transit buses and other City vehicles at the DOT and Fleet Management facilities. Funds in the amount of $60,000 are available in DOT’s capital budget for the remainder of fiscal year 2021-2022, and funds in the amount of $20,000 are available in Fleet Management’s budget. Future year funding is contingent on Council budget approval.
Contract Request
FY 2021-22 Budget Department/CIP Account
#
Total 5-year Contract
Amount
Request Amount
$60,000 C6004750.689000 $656,568
$15,000 70500001.529001 $150,000
$5,000 70500001.529020 $50,000
4 of 4
$80,000 Contract Total $856,568
Prepared By: David Nanjo, Administrative Analyst
Approved Forwarded to Council
Attachments:
A. 3L Oaks