City Council
Report
City Council Meeting: May 24, 2022
Agenda Item: 3.B
1 of 4
To: Mayor and City Council
From: Edward F King, Director, Department of Transportation, Transit Maintenance Subject: Award Bid and Execute a Purchase Order with Toxguard to provide coolant for Department of Transportation transit buses
Recommended Action
Staff recommends that the City Council:
1. Award Bid #4405 to Toxguard Fluid Technologies for the purchase of pre-mixed coolant for heavy-duty engines in transit buses for the Department of Transportation;
2. Authorize the Procurement Manager to issue a purchase order with Toxguard Fluid Technologies for heavy-duty engine coolant in the amount not to exceed $394,925, which includes a $35,902 contingency, over a five-year period with future year funding contingent on Council budget approval.
Summary
The City of Santa Monica’s Department of Transportation (DOT), Big Blue Bus (BBB) division, currently operates 176 transit buses fueled by renewable natural gas and 19 battery electric transit buses. These vehicles require liquid coolant to ensure their natural gas engines and battery systems remain at safe operating temperatures and to ensure that the vehicles are maintained in good operating condition. Through normal operation, coolant becomes contaminated and needs to be replaced as part of DOT’s preventative maintenance process. Staff recommends awarding bid #4405 to Toxguard Fluid Technologies for the purchase and delivery of pre-mixed coolant for transit buses in an amount not to exceed $394,925 over a five-year period including a 10% contingency.
2 of 4
Discussion
Santa Monica’s DOT purchases high quality coolants that comply with Original Equipment Manufacturer (OEM) specifications and standards to protect its transit bus engine and battery systems. Coolant on transit buses maintains engine and battery temperatures at an optimal operating condition, preventing excess temperatures from damaging critical operating components. The periodic replacement of coolant with OEM-approved fluids ensures reliability and operating efficiency of transit buses and extends the cost-effective useful life of the City’s bus fleet. The natural gas engines and battery-electric bus (BEB) battery packs require specific coolant fluids to achieve their expected lifecycles and to meet the equipment manufacturer’s warranty terms.
Bid #4405 was posted on January 28, 2021. Staff initially estimated that purchases under this bid would not exceed the threshold for Council authority, as the estimate was for approximately $50,000. An award was made to Toxguard on an interim basis to better evaluate the volume of product needed. However, as service levels increased after COVID, more coolant than initially anticipated was required, and the first year’s expenditures were higher than forecasted and a multi-year contract would require Council authority. Funds in the amount of $58,065 were expended in the first year of the bid term.
Staff recommends that a formal award be made to Toxguard and seeks Council authority for the remaining four years of the bid term.
The award of bid #4405 would enable DOT to perform regular preventative maintenance to ensure its fleet of transit buses remains in a state of good repair. During normal operation, engine coolant deteriorates as it cools engines and accumulates contaminates that could damage engine components. Every 24,000 miles, transit buses have their coolant fluids changed to prevent engines from sustaining undue wear.
Vendor Selection
Bidder Recommendation
Best Bidder Toxguard Fluid Technologies
3 of 4
Evaluation Criteria
Price, quality of materials, ability to provide all materials, bidder experience and history providing these services to the
Department of Transportation
Municipal Code SMMC 2.24.180
Submittals Received
Toxguard Fluid Technologies $394,925
Van De Pol Petroleum $395,125
Bid Data
Date
Posted Posted On
Advertised in
(City Charter & SMMC)
Vendors
Downloaded
Date Publicly
Opened
1/28/2021 ProcureNow Santa Monica Daily Press 12 2/16/2021 Best Bidder Justification
Bids were evaluated based on the criteria in SMMC 2.24.180 including price, ability to provide the materials according to City specifications included in the bid, experience, reputation, and training of the bidder. Toxguard Fluid Technologies was the lowest cost bidder. Additionally, they have a positive history providing this service to the Department of Transportation with no complaints regarding their products.
Financial Impacts and Budget Actions
Staff seeks authority to approve funding from the Big Blue Bus (BBB) Fund to award a purchase order with Toxguard Fluid Technologies over a five-year period to provide premixed coolant for transit buses. Future year funding is contingent on Council budget approval.
Purchase Order Request
FY 2022-23
Budget
Request Amount
Department/CIP Account # Total Contract Amount
$67,611 60600008.529300 $394,925
4 of 4
Purchase Order Request
FY 2022-23 Budget
Request Amount
Expenditures to
date
Future Years’
Request Amount
Department/CIP
Account #
Total Contract
Amount
$67,611 $58,065 $269,249 60600008.529300 $394,925
Prepared By: David Nanjo, Administrative Analyst
Approved Forwarded to Council