18 Staff Report - Equipment Retrofit and Installation14~ N ap MEETING DATE: 06115/09
ITEM NO:
VI1i~s'cAt~S COUNCIL AGENDA REPORT
DATE: JUNE 2, 2009
TO: MAYOR AND TOWN COUNCIL
FROM: GREG LARSON, TOWN MANAGER
SUBJECT: EOUIPMENT RETROFIT AND INSTALLATION
ADOPT RESOLUTION AUTHORIZING THE TOWN MANAGER TO
EXECUTE AN AGREEMENT WITH EMISSIONS RETROFIT GROUP
FOR THE PURCHASE AND INSTALLATION OF FIVE (5) DIESEL
PARTICULATE FILTERS IN AN AMOUNT NOT TO EXCEED $82,325.
RECOMMENDATION:
Adopt a Resolution (Attachment 1) authorizing the Town Manager to execute an
agreement with Emissions Retrofit Group (Exhibit A) for the purchase and installation of
five diesel particulate filters (DPF) in an amount not to exceed $82,325.
BACKGROUND:
The equipment replacement schedule was part of the adopted FY 2008/09 Operating
Budget and included funding to purchase and install five diesel particulate filters. This
project is inclusive of one regeneration panel, which will be purchased and installed in the
Service Center. The regeneration process is acritical function for the disposal of tiny soot
participle generated from diesel engines exhaust. The regeneration process converts the
particulate material into ash. The ash is then removed by Vehicle Maintenance staff and
sent to a hazardous waste station.
On December 8, 2005 the California Air Resources Board (ARB) adopted a fleet rule to
reduce diesel particulate matter (PM) emissions from fleets operated by public agencies
and utilities. Diesel PM emissions are tiny soot participles from diesel engines and were
identified as a toxic air contaminate in 1998. The exposure to diesel PM is a significant
health hazard, particularly to children whose lungs are still developing and the elderly who
may have other serious health problems.
PREPARED BY: TODD CAPURSO
Director of Parks and Public Works
Reviewed by: -Assistant Town ManagerTown Attorney Cleric Administrator
Finance Community 13evelopment
7
NAPPVAMANACrEMENTICOUNC11ACOUNCIL REPORTS12009 reportslJune MEquipment Retrofit. Jun1509.doc
PAGE 2
JUNE 2, 2009
MAYOR AND TOWN COUNCIL
SUBJECT: EQUIPMENT RETROFIT AND INSTALLATION
BACKGROUND (cont'd):
Municipalities that own or lease on-road diesel fueled heavy-duty vehicles with a 1960 to
2006 model-year median heavy-duty engine, and manufacturer gross vehicle rating greater
than 14,000 pounds, are required to retro-fit existing exhaust systems with updated diesel
particulate filter systems approved by the ARB.
Based on the adopted fleet rule, five diesel powered trucks fall within the current ARB
guidelines and are required to be retrofitted with new DPF systems.
DISCUSSION:
For purchases over $50,000 the Town's bid process requires public advertising and the
preparation of plans and specifications. The Town Code authorizes the reliance on other
municipal agencies competitive bidding processes as an exception to the requirements that
Town staff obtain competitive bids prior to purchasing such equipment and services. The
City of Woodland Purchasing Division advertised plans and specification for DPF system
purchase and installation and awarded a contract to Emissions Retrofit Group on March 02,
2009.
The DPF exhaust systems supplied by Emissions Retrofit Group have received an
executive order verifying the product line meets ARB requirements reducing emissions of
diesel particulate matter (PM) consistent with a level 3 devise (greater than or equal to 85
percent reductions) Title 13, California Code Regulation (CCR) sections 2702 for on-road
vehicles that use heavy-duty diesel engines of all model years up through and including
2006.
Staff will continue to purchase alternative fueled vehicles wherever possible and continue
to evaluate the need for diesel powered vehicles. Diesel powered vehicles purchased after
2007 meet the ARB regulations to reduced PM based on updated engine control and
exhaust systems. Additional cost associated with DPF updates with not be required after
this installation process.
CONCLUSION:
Staff recommends the purchase and installation of five diesel particulate filters from
Emissions Retrofit Group in an amount not to exceed $82,325.
ENVIRONMENTAL ASSESSMENT:
This is not a project defined under CEQA, and no further action is required.
PAGE 3
JUNE 2, 2009
MAYOR AND TOWN COUNCIL
SUBJECT: EQUIPMENT RETROFIT AND INSTALLATION
FISCAL IMPACT:
There are sufficient funds in the FY 2008109 Equipment Replacement Fund for this project.
Attachments-
Resolution authorizing the Town Manager to execute an agreement with Emissions Retrofit
Group (Exhibit A).
Attachment 1
RESOLUTION
RESOLUTION OF THE TOWN COUNCIL
OF THE TOWN OF LOS GATOS
AUTHORIZING THE TOWN MANAGER TO
EXECUTE AN AGREEMENT WITH EMISSIONS RETROFIT GROUP
FOR THE PURCHASE AND INSTALLATION OF FIVE DIESEL
PARTICULATE FILTERS IN AN AMOUNT NOT TO EXCEED $82,325.00
WHEREAS, The Town Code authorizes on the reliance of other municipal agencies
competitive bidding process as an exception to the requirements that Town staff obtain competitive
bids prior to purchasing such equipment; and
WHEREAS, The City of Woodland Purchasing Division advertised plans and
specification for diesel particulate filters system purchase and installation service, and declared
that Emissions Retrofit Group to be the lowest responsible bidder,
NOW, THEREFORE, BE IT RESOLVED by the Tow Council of the Town of Los
Gatos that Emissions Retrofit Group is declared to be the lowest responsible bidder and that the
Town Manager is authorized to execute an agreement (attached as Exhibit A) for said project on
behalf of the Town in an amount not to exceed $82,325.
PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of Los
Gatos, California, held on the 15`E' day of June, 2009 by the following vote.
COUNCIL MEMBERS:
AYES:
NAYS:
ABSENT:
ABSTAIN:
SIGNED:
MAYOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
ATTEST:
CLERK ADMINISTRATOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
EXHIBIT A
CONTRACT
THIS AGREEMENT is between the Town of Los Gatos (hereinafter referred to
as "Owner") and Emissions Retrofit Group (hereinafter referred to as "Contractor").
Owner and Contractor, for the consideration hereinafter named, agree as follows:
A. SCOPE OF WORK
Contractor shall furnish all materials and perform all of the work for the purchase and
installation of five (5) Diesel Particulate Filter (DPF) systems including one (t) hybrid
regeneration station rated at 480v 3-phase. All vehicle DPF systems will be installed by
the contractor onsfte at the Town of Los Gatos Service Center 41 Miles Avenue
between the hours of 7:00 a.m. & 3:30 p.m. Monday thru Friday except for holidays &
weekends in accordance with the Contract Documents.
B. CONTRACT PRICE
As full compensation for furnishing all materials and for doing all the work contemplated
and embraced in this Contract, also for all foss or damage arising out of the nature of
the work aforesaid, or from the actions of the elements, or from any unforeseen
difficulties or obstructions which may arise or be encountered in the prosecution of the
work until its acceptance by Owner, and for all risks of every description connected with
the Work, also for all expenses incurred by or in consequence of the suspension or
discontinuance of work, and for well and faithfully completing the Work, and the whole
thereof, in the manner and according to the Contract Documents, Owner shall pay
(eighty-two thousand three hundred twenty-five dollars), $82,325.00, which shall
supersede any other amount specified in the Contract Documents.
C. CONTRACT DOCUMENTS
All rights and obligations of Owner and Contractor are fully set forth and described in
the Contract Documents. All parts of the Contract Documents are intended to be
correlated so that any work called for in one part and not mentioned in the other, or vice
versa, is to be executed the same as if mentioned in all said documents.
D. BEGINNING OF WORK
Following the execution of this Contract and the approval of bonds and insurance
policies and certificates, Owner shall issue a Notice to Proceed with the Work.
Commencing work or the entrance of equipment or materials on the site of the Work by
Contractor before receipt of the Notice to Proceed is at the sole risk and expense of
Contractor, and the Contractor shall be fully liable for any damage or injury sustained by
Owner or third persons resulting there from.
BOND FOR SECURITY OF
LABORERS AND MATERIALPERSONS
WHEREAS, the Town Council of the Town of Los Gatos, State of California, and
Emissions Retrofit Group (hereinafter designated as "Principal") have entered into a
Contract whereby Principal agrees to install and complete certain designated public
improvements, which said Contract, dated /P k A , 2009 and identified as
purchase and installation of five (5) Diesel Particulate Filter (DPF) systems including
one (1) hybrid regeneration station rated at 480v 3-phase, is hereby referred to and
made a part hereof; and
WHEREAS, under the terms of said Contract, Principal is required before entering upon the
performance of the Work, to file a good and sufficient payment bond with the Town of Los
Gatos to secure the claims to which reference is made in Title 15 (commencing with §3082)
of Part 4 of Division 3 of the Civil Code of the State of California.
NOW, THEREFORE, said Principal and the undersigned as Corporate Surety, are held
firmly bound unto the Town of Los Gatos and all Contractors, subcontractors, laborers,
material persons and other persons employed in the performance of the aforesaid Contract
and referred to in the aforesaid Code of Civil Procedure in the sum of (eighty-two thousand
three hundred twenty-five dollars), $82,325,00, for materials furnished or labor thereon of
any kind, or for amounts due under the Unemployment Insurance Act with respect to such
work or labor, that said Surety will pay the same in an amount not exceeding the amount
herein above set forth, and also in case suit is brought upon this bond, will pay, in addition
to the face amount thereof, costs and reasonable expenses and fees, including reasonable
attorney's fees, incurred by the Town in successfully enforcing such obligation, to be
awarded and fixed by the court, and to be taxed as costs and to be included in the
judgment therein rendered.
It is hereby expressly stipulated and agreed that this bond shall inure to the benefit of any
and all persons, companies and corporations entitled to file claims under Title 15
(commencing with § 3082) of Part 4 of Division 3 of the Civil Code, so as to give a right of
action to them or their assigns in any suit brought upon this bond.
Should the condition of this bond be fully performed, then this obligation shall become null
and void, otherwise it shall be and remain in full force and effect.
The Surety hereby stipulates and agrees that no change, extension of time, alteration or
addition to the terms of said Contract or the Specifications accompanying the same shall in
any manner affect its obligations on this bond, and it does hereby waive notice of any such
change, extension, alteration or addition.
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E. TIME OF COMPLETION
The Work called for herein shall be fully completed within One hundred twenty days
(129) working days of Contractor's receipt of the Notice to Proceed. Purchase of
equipment and installation services is based on the attached list (as set fourth in Exhibit
A).
F. CORRECTION OF WORK AFTER ACCEPTANCE AND
FINAL PAYMENT BY TOWN
Contractor shall remedy any defects due to faulty materials and/or workmanship and
pay for any damages to other work and/or existing facilities resulting there from which
shall appear within a period of 60 months or five years from the date of completion of
installation and purchase of the Diesel Particulate Filter (DPF) systems.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of
day of /0 Z , 2009.
TOWN OF LOS GATOS, by.
Greg Larson
Town Manager
RECOMMEND BY:
Todd Capurso, Director
Parks and Public Works
CONTRACTOR, by:
Emissions Retrofit Group
41z<
Signature)
(Print Name)
APPROVED AS TO FORM:
Orry P. Korb
Town Attorney
ATTEST:
(Address, City, State, Zip)
4'1 ~ b 4C-) ;7- s-~ S;~ 0
(California Automotive Repair (BAR)
License Number)
Jackie Rose
Clerk Administrator
FAITHFUL PERFORMANCE BOND
WHEREAS, the Town Council of the Town of Los Gatos, State of California, and
Emissions Retrofit Group (herein designated as "Principal") have entered into an
agreement whereby Principal agrees to install and complete certain designated public
improvements, which said Contract, dated 1,5 , 2009, and identified as
purchase and installation of five (5) Diesel Particulate Filter (DPF) systems
including one (1) hybrid regeneration station rated at 480v 3-phase, is hereby
referred to and made a part hereof; and
WHEREAS, said Principal is required under the terms of said agreement to furnish a
bond of the faithful performance of said agreement.
NOW. THEREFORE, we, the Principal and ~ IF1 crrnu,
as Surety, are held and firmly bound unto the Town of Los Gatos (hereinafter called
"Town"), in the penal sum of (eighty-two thousand three hundred twenty-five dollars),
$82,325.00, lawful money of the United States, for the payment of which sum well and
truly to be made, we bind ourselves, our heirs, successors, executors and
administrators, jointly and severally, formally by these presents.
The condition of this obligation is such that if the above bounded Principal, his/her or its
heirs, executors, administrators, successors or assigns, shall in all things stand to and
abide by, and well and truly keep and perform the covenants, conditions and provisions
in the said Contract and any alteration thereof made as therein provided, on his or their
part, to be kept and performed at the time and in the manner therein specified, and in all
respects according to their true intent and meaning, and shall indemnify and save
harmless Town, its officers, agents and employees, as therein stipulated, and this
obligation shall become null and void; otherwise it shall be and remain in full force and
effect.
Principal and Surety further agree that upon Town's final acceptance of the Work, 10%
of this bond shall remain in effect to guarantee the repair and/or replacement of
defective materials and/or workmanship, 2 years after Town's final acceptance of the
Work.
As a part of the obligation secured hereby and in addition to the face amount specified
therefore, there shall be included costs and reasonable expenses and fees, including
reasonable attorney's fees, incurred by Town in successfully enforcing such obligation,
all to be taxed as costs and included in any judgment rendered.
The Surety hereby stipulates and agrees that no change, extension of time, alteration or
addition to the terms of the Contract or to the Work to be performed hereunder or the
specifications accompanying the same shall in any way affect its obligations on this
bond, and it does hereby waive notice of any such change, extension of time, alteration
or addition to the terms of the Contract or to the Work or to the Specifications.
IN WITNESS WHEREOF, this instrument has been duly executed by the Principal and
Surety above named, on 00 ?4,4?' , 2009.
NOTE: Attach Notary Acknowledgment for signatures of those executing for Principal and
Surety.
PRINCIPAL: SURETY:
(Seal) (Seal)
(Principal) (Surety)
(Address) (Address)
(City, State, Zip)
(City, State, Zip)
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