Resolution 12-11RECORD OF RESOLUTIONS
Stank, Inc., Forth No. 3000.5
Resolution No.
12 -11
Passed 20
A RESOLUTION WAIVING COMPETITIVE BIDDING
REQUIREMENTS, PURSUANT TO SECTION 8.04
(`CONTRACTING PROCEDURES'), PARAGRAPH (C)
( "WAIVER OF COMPETITIVE BIDDING "), FOR THE
PURCHASE OF COMPRESSED NATURAL GAS (CNG)
VEHICLE CONVERSION HITS, AND AUTHORIZING
THE CITY MANAGER TO ENTER INTO A
CONTRACT WITH ALTECH ECO CORPORATION.
WHEREAS, Section 8.04(c) of the Revised Dublin Charter authorizes City Council, by a
vote of no less than five (5) members, to waive competitive bidding requirements if
Council determines that an item is available and can be acquired only from a single source
or when it is in the best interest of the City to do so; and
WHEREAS, it is necessary for the City of Dublin to purchase compressed natural gas
conversion kits for forty -four vehicles that will be purchased in 2011; and
WHEREAS, a bid opening for the above mentioned compressed natural gas conversion
kits was held on Monday, November 29, 2010, resulting in no bids being received; and
WHEREAS, a subsequent agreement, pursued by the City to purchase conversion kits
from a third parry designed to pass through to the City a percentage of available tax credits
through a reduction in the total purchase price, was not able to be executed; and
WHEREAS, Council has determined that it is in the best interest of the City to waive
competitive bidding for this project.
WHEREAS, Council has determined that the quote submitted by Altech Eco Corporation
in the amount of approximately $465,000 is fair and appropriate.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Dublin, State of
Ohio, —q— of the elected members concurring:
Section 1. That competitive bidding requirements are hereby waived for the procurement
of compressed natural gas conversion kits.
Section 2 . That the City Manager is hereby authorized to enter into an agreement with
Altech Eco Corporation for the purchase of compressed natural gas conversion kits.
Section 3. That this Resolution shall take effect and be in force on the earliest date
permitted by law.
Passed this Z-11- day of 2011
May PrOi ling O fficer
ATTEST: u
V I_I ✓�
Clerk of Council
CrrY OF DUBLIN_
Office of the City Manager
5200 Emerald Parkway • Dublin, OH 43017 -1090
Phone: 614 - 410 -4400 • Fax: 614 - 410 -4490
To: Members of Dublin City Council
From: Marsha Grigsby, City Manager \-�.
Date: March 24, 2011
Initiated By: Michelle L. Crandall, Director of Administrative Services
Memo
Re: Resolution 12 -11 Waiving Competitive Bidding for Purchase of Compressed Natural
Gas (CNG) Conversion Kits
Summary
Resolution 12 -11 waives competitive bidding and permits the City to purchase forty -four
compressed natural gas (CNG) conversion kits directly from the manufacturer, Altech Eco
Corporation. The total cost of these conversion kits is estimated to be approximately $465,000.
Please refer to attached memorandum that was included in Council's March 14 meeting packet, for
details related to this resolution.
Recommendation
Staff recommends passage of Resolution 12 -11. If you have questions or comments regarding this
memorandum, please contact Michelle Crandall at 410 -4403 (desk) or 206 -4886 (mobile).
Office of the City Manager
5200 Emerald Parkway • Dublin, OH 43017 -1090
CITY OF DUBLIN- Phone: 614 - 4104400 • Fax: 614 -410 -4490 Memo
To: Members of Dublin City Council
From: Marsha Grigsby, City Manager ��
Date: March 10, 2011
Initiated By: Michelle L. Crandall, Director of Administrative Services
Re: Update on Purchase of CNG Conversion Kits
Summary
In December 2010, Council approved a resolution waiving competitive bidding for the purchase
of 44 compressed natural gas (CNG) conversion kits from Wagner Motors (attached). Tied to
this purchase was the negotiation of federal tax credits available for this type of alternative fuel
purchase, which expired on December 31, 2010. Unfortunately, this agreement could not be
executed, due to the fact that the CNG conversion kits that would have been purchased as part of
the agreement had not yet received necessary EPA certifications for the 2011 models. An
attempt was made to identify 2010 vehicles for conversion with the 2010 EPA - certified
conversion kits, however, the vehicle types and specifications needed were not available.
Ultimately, this resulted in a potential $340,000 in "pass—through' ' tax credits that was not able
to be realized.
At Council's March 28 meeting, staff will bring forward a new resolution, once again requesting
that Council waive competitive bidding to permit the City to purchase the conversion kits
directly from the manufacturer. The total cost of the 44 conversion kits will be approximately
$465,000. Forty -one of the vehicles will be converted using the City's in -house technicians,
saving approximately $82,000 of installation costs. Funding for this project is included in the
2011 CIP.
A portion of the cost of the conversion kits will be reimbursed through the Department of Energy
(DOE) grant. The total project cost for the CNG fueling station, modifications to the fleet
maintenance building, and purchase and conversion of 44 vehicles is estimated at approximately
$3.7 million. The DOE grant will reimburse approximately $1.5 million. Additionally, IGS has
agreed to a $275,000 contribution.
Recommendation
For information only. If you have questions or comments regarding this memorandum, please
contact Michelle Crandall at 410 -4403 (desk) or 206 -4886 (mobile).
RECORD OF RESOLUTIONS
loo. Fmm No .3 45
Resolution No
55-10
Passed 1 20
A RESOLUTION WAIVING COMPETITIVE BIDDING
REQUIREMENTS, PURSUANT TO SECTION 8.04
(`CONTRACTING PROCEDURES'), PARAGRAPH (C)
( "WAIVER OF COMPETITIVE BIDDING ") FOR THE
PURCHASE OF COMPRESSED NATURAL GAS (CNG)
VEHICLE CONVERSION HITS AND AUTHORIZING
THE CITY MANAGER TO ENTER INTO A
CONTRACT WITH WAGNER MOTORS.
WHEREAS, Section 8.04(c) of the Revised Dublin Charter authorizes City Council,
by a vote of no less than five (5) members, to waive competitive bidding requirements
if Council determines that an item is available and can be acquired only from a single
source or when it is in the best interest of the City to do so; and
WHEREAS, it is necessary for the City of Dublin to purchase compressed natural gas
conversion kits for 44 vehicles that will be purchased in 2011; and
WHEREAS, a bid opening for the above mentioned compressed natural gas
conversion kits was held on Monday, November 29, 2010, resulting in no bids being
received; and
WHEREAS, there is an opportunity for the City to realize substantial savings by
purchasing conversion kits from a third party who would agree to pass through to the
City a percentage of available tax credits through a reduction in the total purchase
price; and
WHEREAS, Council has determined that it is in the best interest of the City to waive
competitive bidding for this project.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Dublin,
State of Ohio, —7— of the elected members concurring that:
Section 1. Competitive bidding requirements are hereby waived for the procurement
of compressed natural gas conversion kits.
Section 2 . The City Manager is hereby authorized to enter into an agreement with
Wagner Motors for the purchase of compressed natural gas conversion kits.
Section 3. This Resolution shall take effect and be in force upon passage in
accordance with Section 4.04(a) of the Revised Charter.
Passed this Lj�_ day of , 2010.
Mayor - Pres&g Officer
ATTEST:
Clerk of Council
Office of the City Manager
5200 Emerald Parkway, Dublin, Ohio 43017
CITY OF oteun Phone: 614 - 410 -4400
To: Members of Dublin City Council
From: Marsha I. Grigsby, City Manager \�
Date: December 2, 2010
Initiated By: Michelle L. Crandall, Director of Administrative Services
Memo
Re: Resolution 55 -10 - Waiving Competitive Bidding for the Purchase of CNG
Conversion Kits
Summary
As Council is aware, the City was awarded a Department of Energy Grant though Clean Fuels
Ohio to convert a portion of the City's fleet to compressed natural gas (CNG), to design and
build a CNG fueling station and to make modifications to the fleet maintenance building in order
to be able to service CNG vehicles. On Monday, November 29, a bid opening was scheduled for
the purchase of 44 compressed natural gas conversion kits to be installed on vehicles that will be
purchased in 2011. The City has been working with Ergo Consulting to assist with development
of bid specifications and to address bidder inquiries. Purchase price for all 44 kits is estimated at
approximately $465,000.
Several prospective bidders requested copies of the bid documents, but ultimately no bids were
received for this project Based on inquiries from prospective bidders, it is Staff's understanding
that no bids were received due to the following two reasons:
1. The bid specifications were written solely for the conversion kits and did not include the
vehicle conversions (installation of the kits on the vehicles). Several inquires were
received from potential bidders wanting to supply the kits and complete the conversions,
due to the fact that there is a greater margin of profit associated with the conversion of
the vehicles. However, the City, after analyzing the costs and benefits of outsourcing the
conversions, determined it would be more cost effective to use in -house technicians to
complete the conversions. Therefore, this was not included as part of the bid package.
2. The bid included an alternate (optional) bid for the sharing of tax credits available for the
purchase of the conversion kits. In total, $340,000 in tax credits are available if the kits
are purchased by December 31, 2010 (see table on page 2). While interest in this
optional bid was expressed by several car dealerships, the understanding of the tax laws
and associated approval processes within the corporations precluded a timely response.
Following the bid opening deadline, Ergo Consulting was contacted by Wagner Motors, a car
dealership located in Fostoria interested in purchasing the conversion kits and negotiating a pass -
through to the City of a percentage of the available tax credits. Wagner Motors was a recipient
of Department of Energy funding for CNG vehicles and is familiar with the tax credit laws and
procedures. Ergo is currently assisting the City with reviewing and negotiating a potential
agreement with Wagner. If this agreement is successfully negotiated, the City would expect
Memo re. Purchase of CNG Conversion Kits
December 2, 2010
Page 2 of 3
substantial savings to be realized, dependent upon the percentage of tax credits that would be
passed along as part of the agreement.
Due to the competitive bidding requirements stipulated as part of this Federal grant, the City has
submitted to the Department of Energy (via Clean Fuels Ohio - the state granting organization) a
vendor justification form requesting that the competitive bidding requirements be waived for
purchase of the conversion kits and specifying Wagner Motors as the selected vendor. Staff is
cautiously confident that the vendor justification request will be approved, based on similar
requests being approved for other grantees.
Should this agreement not be successfully negotiated or the City not be permitted by the
Department of Energy to pursue the agreement, staff would prepare a subsequent resolution for
Council's consideration, again requesting waiver of the competitive bidding requirements and
allowing for the purchase of conversion kits directly from a preferred manufacturer. This would
also require approval from the Department of Energy (via Clean Fuels Ohio). No tax credits
would be included with this option.
Staff is requesting Council waive the competitive bidding requirements based on the following
justification:
1. A bid for the conversion kits was advertised for 30 days resulting in no bids being
received.
2. The opportunity exists to purchase the kits through a third party and realize substantial
costs savings that would not be available by purchasing the kits directly from a
manufacturer.
Recommendation
Staff recommends approval of Resolution 55 -10, waiving the competitive bidding requirements
and allowing the City Manager to enter into a contact with Wagner Motors for the purchase of 44
compressed natural gas (CNG) conversion kits.
Memo re. Purchase of CNG Conversion Kits
December 2, 2010
Page 3 of 3
City of Dublin
Compressed Natural Gas Conversion Kits
Available Tax Credits /Vehicle
Vehicle Type
Number of Vehicles
I Tax CreditfVehicle
Total Tax Credit
F -250
Fort 40
$8,000
$ 320,000
Fusion
Two 2
$4,000
$ 8,000
Transit Connect
One 1
$4,000
$ 4,000
F -350
One 1
$8,000
$ 8,000
Total
Forty -four 44
$ 340,000
Note: Amount of tax credit determined based on gross vehicle weight (GVW)
GVW 8,500 — 14,000 pounds = $8,000 /vehicle
GVW < 8,500 pounds = $4,000 /vehicle