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Home My Public Portal About11) 7E Contract with RDO Agriculture Equipment for three electric vehiclesDATE: TO: FROM: AGENDA PARKS AND RECREATION DEPARTMENT ITEM 7. E. MEMORANDUM February 5 , 2019 The Honorable City Council Bryan Cook, City Manager By: Cathy Burroughs , Director of Parks and Recreation SUBJECT: AWARD OF CONTRACT TO ROO AGRICULTURE EQUIPMENT CO. FOR PURCHASE OF THREE ELECTRIC VEHICLES FOR THE PARKS AND RECREATION DEPARTMENT RECOMMENDATION: The City Council is requested to award a contract to ROO Agriculture Equipment Co. for the purchase of three (3) electric utility vehicles for use in the Parks and Recreation Department. BACKGROUND: 1 . On June 19, 2018, the City Council adopted the 2018-19 Fiscal Year (FY) budget which included Air Quality Management District (AQMD), AB 2766 Subvention Funds, for the purchase of two electric utility vehicles. 2. On July 3, 2018, the City Council adopted Resolution 18-5342 authorizing staff to apply for funding through the MSRC 's Clean Transportation Funding Local Partnership Program. If approved, the funds would be used to supplement the AQMD funds for the purchase of the electric vehicles. 3. On September 12 , 2018 , the City was notified that the South Coast Air Quality Management District Governing Board approved the MSRC funding for the purchase of the electric vehicles in the amount of $16,000 . 4. On October 15 , 2018 , the City released a Request for Quotations (RFQ) for the purchase of two (2) Polaris Ranger EV (or equiva lent) electric utility vehicles . The bid notice was published on the City's website and sent directly to seven (7) local Polaris dealers. The deadline to submit quotes was November 5, 2018 . One bid was received by the published due date, from ROO Agriculture Equipment Co. (ROO). The bid from ROO was for John Deere electric vehicles, not Polaris Rangers. City Council February 5, 2019 Page 2 of 4 5. On January 4, 2019, staff contacted additional Polaris Ranger dealers in an effort to obtain a quote for the Polaris Ranger EV. One quote was received, from Bert's Mega Mall in Covina, California. The price was substantially more than that from ROO for the John Deere vehicles. 6. On January 9, 2019, staff contacted the MSRC representative to determine if the electric vehicles were required to be Polaris Rangers (as identified in the grant proposal) or if they could be another make (i.e. John Deere). We were advised that they could be another model as long as they were completely electric. 7. On January 15, 2019, staff was informed that the City should draw down on its AQMD funds to avoid potential lapses. At that time, staff recommended the City purchase three (3) electric vehicles instead of two (2). 8. On January 17, 2019, staff contacted ROO and Bert's Mega Mall to obtain updated quotes for the purchase of three (3) electric utility vehicles instead of two (2). ROO responded with a lower price per vehicle, providing a multi-vehicle discount; Bert's Mega Mall stated the price would remain the same. ANALYSIS: As part of the City's FY 2018-19 budget, staff included $32,000 in AQMD funds for the purchase of two (2) electric utility vehicles to replace two (2) 2002 electric GEM carts. The electric carts are used on a regular basis for routine maintenance tasks in the park and in support of community events (i.e. collecting and dumping trash, hauling equipment and supplies, etc.). The GEM carts are in extremely poor condition, one is unusable. The estimated cost for each vehicle, identified at that time as a Polaris Ranger EV, was $16,000. Subsequent to adoption of the FY 2018-19 budget, staff applied for a grant through the MSRC's Local Government Match Program which, if approved, would cover half the cost of the electric vehicles. The sole mission of the MSRC, which was established by the California Legislature in 1990, is to invest funds to reduce air pollution generated by mobile sources. The Local Government Partnership Program sets aside a pro-rata share of MSRC funding for each city and county within the South Coast AQMD who participate in the AB 2766 Subvention Fund Program. The funding allocation is based upon the amount of AB 2766 Subvention Funds each jurisdiction receives. The MSRC highly recommends that the participating cities and counties use, to the maximum extent possible, their AB 2766 Subvention Funds as a match. Although not required by the MSRC, staff solicited proposals for the purchase of the electric vehicles through an RFQ. The RFQ was published on the City's website and sent directly to seven authorized Polaris Ranger dealers. Only one bid was received by the published due date, from ROO. Their bid was for a comparable electric utility vehicle, a John Deere TE. Because the Polaris Ranger EV was specifically identified as the vehicle City Council February 5, 2019 Page 3 of 4 the City planned to purchase in the MSRC proposal, staff was unsure if their bid could be accepted. As such, staff directly contacted local authorized Polaris Ranger dealers, including Temple City Power Sports and Bert's Mega Mall in an effort to obtain additional quotes. Temple City Power Sports advised staff that they could not provide the requested vehicles. Bert's Mega Mall provided a quote which was significantly higher than ROO's quote for the John Deere TE. Below is a summary of the quotes received: VENDOR MAKE/MODEL PRICENEHICLE TOTAL ROO Agriculture Equipment John Deere TC $12,230.88 $24,461.76 Bert's Mega Mall Polaris Ranger EV $17,771.00 $35,542.00 Because of the significant price difference, staff contacted the MSRC to inquire if the John Deere vehicles could be purchased, or if the grant contract required the vehicles to be Polaris Rangers. We were advised that the John Deere electric vehicles were acceptable. Per the grant requirements, only half the cost of each vehicle is covered by MSRC funds, therefore, based on the quote from ROO, the City would spend $12,230.88 in AQMD funds and $12,230.88 in MSRC funds. The table below identifies the funding source and unspent funds if the City were to purchase two (2) John Deere electric vehicles: AQMD MSRC FY 2018-19 Adopted Budget $32,000.00 $0 Approval of MSRC Proposal $16,000.00 $16,000.00 Quote from John Deere $12,230.88 $12,230.88 Unspent Funds $19,769.12 $ 3,769.12 Because additional AQMD funds were available, staff recommended the purchase of a third electric utility vehicle for use in the parks. With the option under consideration to purchase three (3) electric vehicles, staff again contacted ROO and Bert's Mega Mall to determine if the price per vehicle would remain the same. ROO provided a 1% multi- vehicle discount. The total cost for three (3) electric vehicles through ROO was $36,189.76. Bart's Mega Mall indicated the price would remain the same for a total cost of $53,313. It should be noted that the quote from ROO for the John Deere vehicles is through a Sourcewell Contract (formerly NJPA) which is a contract purchasing cooperative. The purchase of three (3) electric vehicles for use in the Parks and Recreation Department would allow staff to more effectively and efficiently complete their daily tasks, allow for back up vehicles when needed for the Parks and Recreation Department, or other departments, and would encumber AQMD funds that might otherwise be lost. Attached (Attachment "A") is the Quote Summary for the purchase of three (3) John Deere TE electric utility vehicles from ROO. Staff recommends the City Council award a contract to ROO, in an amount not to exceed $37,000, for the purchase of three (3) electric utility vehicles. City Council February 5, 2019 Page 4 of 4 CITY STRATEGIC GOALS: Awarding this contract to ROO Agriculture Equipment Co will further the City's Strategic Goal of Good Governance. FISCAL IMPACT: The City Council, as part of the FY 2018-19 City Budget, has appropriated $32,000 in AQMD funds for the purchase of two (2) electric utility vehicles. An MSRC grant has been secured in an amount up to $16,000, or one-half the cost of two (2) vehicles ($12,008). The total cost for the three (3) vehicles is $36,189.76. A budget amendment, in the amount of $5,000 is required from AQMD funds for the initial purchase of the three (3) electric vehicles, however $12,008 would be reimbursed back to the AQMD fund through the MSRC grant. ATTACHMENT: A Quote Summary-John Deere, ROO Agriculture Equipment Co D JOHNDEERE ALL PURCHASE ORDERS MUST BE MADE OUT TO (VENDOR): Deere & Company 2000 John Deere Run Cary, NC 27513 FED ID: 36-2382580; DUNS#: 60-7690989 Prepared For: City Of Temple City 5938 Kauffman Ave Temple City , CA 91780 Sourcewell Member# 72567 Equipment Summary JOHN DEERE TE (Model Year 19) ATTACHMENT A ALL PURCHASE ORDERS MUST BE SENT TO DELIVERING DEALER: ROO Agriculture Equipment Co 83-300 Avenue 45 Indio, CA 92201 760-342-8900 act-ind@rdoequipment.com Quote Summary Delivering Dealer: ROO Agriculture Equipment Co Spencer Nelson 83-300 Avenue 45 Indio, CA 92201 Phone: 760-342-8900 snelson@rdoequipment.com Quote 10: 18433594 Created On: 26 October 2018 Last Modified On: 17 January 2019 Expiration Date: 11 February 2019 Selling Price Qty Extended $ 11 ,116.67 X = $ 11 ,116.67 Contract: Sourcewell Grounds Maintenance 062117 -DAC (PG NB CG 70) Price Effective Date: J anuary 10, 2 019 JOHN DEERE TE (Model Year 19) $ 10,966.67 X Contract: Sourcewell Grounds Maintenance 062117-DAC (PG NB CG 70) Price Effective Date: January 10, 2019 Equipment Total *Includes Fees and Non-contract item s Quote Summary Equipment Total Trade In SubTotal County Tax - (9.50%) Est. Service Agreement Tax Total Down Payment Re ntal Appli ed Balance Due 2 = $21,933.34 $33,050.01 $33,050.01 $33,050.01 $3,168.25 $0.00 $36,218.26 (0.00) (0.00) $36,218.26 Salesperson : X ____ _ Accepted By: X ____ _ Confide ntial D JOHNDEERE ALLPURCHASEORDERSMUSTBEMADEOUT TO (VENDOR): Deere & Company 2000 John Deere Run Cary, NC 27513 FED ID: 36-2382580; DUNS#: 60-7690989 Salesperson : X ALL PURCHASE ORDERS MUST BE SENT TO DELIVERING DEALER: ROO Agriculture Equipment Co 8 3-300 Avenue 45 Indio, CA 92201 760-342-8900 act-ind@rdoequipment.com Accepted By: X ____ _ Confidential g JOHN DEERE Selling Equipment Quote ld: 18433594 Customer Name: CITY OF TEMPLE CITY ALL PURCHASE ORDERS MUST BE MADE OUT TO (VENDOR): ALL PURCHASE ORDERS MUST BE SENT TO DELIVERING DEALER: Deere & Company 2000 John Deere Run Cary, NC 27513 FED 10: 36-2382580; DUNS#: 60-7690989 ROO Agriculture Equipm ent Co 83-300 Avenue 45 Indio , CA 92201 760-342-8900 act-ind@rdoequipment.com JOHN DEERE TE (Model Year 19) Hours: Stock Number: Contract: Sourcewell Grounds Maintenance 062117-DAC (PG NB CG 70) Price Effective Date: January 10, 2 019 Selling Price * $ 111116.67 * Price per item -includes Fees and Non-contract items Code Description Qty List Price Discount% Discount Contract Extended Amount Price Contract Price 5594M TE (Model Year 19) 1 $ 12 ,249.00 16.00 $ 1,959.8 4 $ 10 ,289.16 $ 10,289.16 Standard Options -Per Unit 001A US/Canada 1 $0.00 16.00 $0.00 $0.00 $0.00 0501 PR -Base 1 $0.00 16.00 $0.00 $0.00 $0.00 1015 Turf Tires 1 $0 .00 16.00 $0.00 $0.00 $0.00 2016 Non Adjustable Seat 1 $0.00 16.00 $0.00 $0.00 $0.00 300 1 Deluxe Ca rgo Box with Paint 1 $0.00 16.00 $0.00 $0 .00 $0.00 and Reflectors 3100 Cargo Box Manual Lift 1 $0.00 16.00 $0.00 $0.00 $0.00 3301 48-V Headlig ht s 1 $0.00 16.00 $0.00 $0.00 $0.00 40 99 L ess Front Protection 1 $0.00 16.00 $0.00 $0.00 $0.00 Package 4199 Less Rear Protection 1 $0.00 16.00 $0.00 $0.00 $0.00 Package 6018 Less Rear Receiver Hitc h 1 $0.00 16.0 0 $0.00 $0.00 $0.00 Standard Options Total $0.00 $0.00 $0.00 $0.00 Dealer Attachments/Non-Contract/Open Market Open Wiedmann Canopy 1 $952 .38 16.00 $152.38 $800.00 $800 .00 Market Item Dealer Attachments Total $952.38 $ 152.38 $ 800.00 $800.00 Value Added Services $0.00 $0.00 $0.00 Total - Other Charges Fre ight 1 $ 150.00 $ 150.00 $ 150.00 Other Charges Total $ 150.00 $ 150.00 $ 150.00 Confidential JOHN DEERE Selling Equipment Quote ld: 18433594 Customer Name: CITY OF TEMPLE CITY ALL PURCHASE ORDERS MUST BE MADE OUT TO (VENDOR): ALL PURCHASE ORDERS MUST BE SENT TO DELIVERING DEALER : De ere & Company 2000 John Deere Run Cary, NC 27513 FED ID: 36-2382580; DUNS#: 60-7690989 Suggested Price ROO Agriculture Equi pmen t Co 83-300 Avenue 45 Indi o, CA 92201 760-342 -8900 act-ind@rdoequipment.com Additional Discounts $11,239.16 Multi-unit Discount 1 Additional Discount Total $ 122.49 $ -122.49 $ -122.49 $ 122.49 $ -122.49 $ -122.49 Total Selling Price $ 13,351.38 $2,234.71 $11,116.67 $11 ,116.67 JOHN DEERE TE (Model Year 19) Equipment Notes: Hours: Stock Number: Contract: Sourcewell Ground s Maintenance 062117-DAC (PG NB CG 70) Price Effective Date: January 10, 2019 Selling Price * $ 10,966.67 * Price per item -includes Fees and Non-contract item s Code Description Qty List Price Discount% Discount Contract Extended Amount Price Contract 5594M TE (Model Yea r 19) 2 $ 12,249.00 Price 16.00 $ 1,959 .84 $ 10,289.16 $ 20,578.32 001A 0501 1015 20 16 3001 3100 3301 4099 4199 60 18 Open Market Item Standard Options -Per Unit US/Ca nada 2 $0.00 16 .00 $0.00 PR -Base 2 $0.00 16.00 $0.00 Turf T ires 2 $0.00 16.00 $0.00 Non Adjustable Seat 2 $0.00 16 .00 $0.00 Delu xe Cargo Box with Paint 2 $0.00 16.00 $0.00 an d Reflectors Cargo Box Manual Lift 2 $0.00 16.00 $0 .00 48-V Headlig hts 2 $0.00 16.00 $0.00 Less Front Protection 2 $0.00 16.00 $0.00 Pa ckage Less Rear Protectio n 2 $0.00 16.00 $0.00 Package Less Rear Receiver Hitc h 2 $0.00 16.00 $0.00 Standard Options Total $0.00 $0.00 Dealer Attachments/Non-Contract/Open Market Wiedmann Canopy 2 $952.38 16.00 $ 152.38 Confidential $0.00 $0.00 $0.00 $0.00 $0 .00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0 .00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $800.00 $ 1,600 .00 D JOHN DEERE Selling Equipment Quote ld: 18433594 Customer Name: CITY OF TEMPLE CITY ALLPURCHASEORDERSMUSTBEMADEOUT TO (VENDOR): Deere & Company 2000 John Deere Run Cary, NC 27513 FED ID: 36-2382580; DUNS#: 60-7690989 ALLPURCHASEORDERSMUSTBESENT TO DELIVERING DEALER : RDO Agriculture Equipment Co 83-300 Avenue 45 Indio, CA 92201 760-342 -8900 act-ind@rdoequipment.com Dealer Attachments Total $952.38 $ 152.38 $ 800.00 $ 1,600.00 Value Added Services Total Suggested Price Multi-unit Discount Additional Discount Total $0.00 Additional Discounts 2 $0.00 $0.00 $22,178.32 $ 122.49 $ -122.49 $ -244 .98 $ 122.49 $ -122.49 $ -244.98 Total Selling Price $ 13,201.38 $ 2,234.71 $ 10,966.67 $ 21,933.34 Confidential