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1 Date 6/30/2017 6/30/2017: 6/26/2017: Approval EY MY By RW AE MT BY...jil 0.'1 1 Los Angeles World Airports REPORT TO THE B A - e OF AIRPORT COMMISSIONERS Meeting Date:, A irdro, /. Approved : aiph -,... Director of Maintenance Services Reviewed b :. I Michael R. Christensen, Deputy Executive Director CAO Review: 1 $2, Reviewed for I City orn Finance 1 Witl i/a i 0 v Deborah Flint - Chief ecutive e, ficer Procurement 1 Guest Experience 1 7/13/2017 I Completed Pending N/A Status I ZIY N NA 1 CEQA 6/26/ N 1 EY EN Gnnd 1 1 ON 1 SUBJECT: Join State of California Contract No and Award of Contract to Winner Chevrolet Authorization to join State of California Contract No D with Winner Chevrolet and award a two-year contract for the purchase of up to 81 four-door electric sedans to be used at Los Angeles International Airport (LAX) for a total amount not-to-exceed $3,106,000. RECOMMENDATIONS: Management RECOMMENDS that the Board of Airport Commissioners: 1. ADOPT the Staff Report. 2. DETERMINE that this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Article II, Section 2.f of the Los Angeles City CEQA Guidelines. 3. FIND that this action complies with Los Angeles City Charter Section 371(e)(8) and competitive bidding for this action would not be practicable or advantageous. 4. APPROVE the joining of State of California Contract No D with Winner Chevrolet to award a two-year contract for the purchase of up to 81 four-door electric sedans to be used at LAX for a total amount not-to-exceed $3,106, AUTHORIZE the Chief Executive Officer to execute the contract after approval as to form by the City Attorney. Page 1
2 DISCUSSION: 1. Purpose To establish a two-year contract to purchase up to 81 four-door electric sedans to be used at LAX. 2. Prior Related Actions April 6, Resolution No The Board of Airport Commissioners adopted the Los Angeles World Airports' Alternative Fuels Vehicle Program. The proposed policy provided guidelines governing LAWA's identification and replacement of its own traditional fossil fuel powered vehicles and equipment with alternative fuel vehicles, where possible. January 14, Resolution No , (DA-4785) The Board of Airport Commissioners awarded a contract to DCH Gardena Honda for 15 Honda Civic GX sedans fueled by compressed natural gas, for an amount not-to-exceed $404, June 15, 2017 The Board of Airport Commissioners adopted the Electric Vehicle Purchasing Policy for LAWA's light-duty fleet vehicles. 3. Current Action LAWA's Maintenance Services Division (MSD) is responsible for vehicle and equipment replacement. Cars, trucks, utility vehicles, and specialized equipment items are evaluated on a regular basis for replacement. Through this action, staff will replace up to 81 vehicles at the end of their useful life, including sedans and Sport Utility Vehicles (SUVs), with fully electric sedans. Replacement of these vehicles will increase availability, reliability, operational safety, and delivery of services while decreasing emissions and maintenance costs. Light-duty vehicles that are fueled by compressed natural gas (CNG) are no longer available. In order to remain in compliance with LAWA's Alternative Fuels Vehicle requirements and meet service requirements, staff determined the best replacement alternative would be the new generation of extended-range fully electric sedans. During Fiscal Year (FY) , staff will replace 51 vehicles for an estimated cost of $1,935,000. Thirty vehicles will be replaced in FY at an estimated cost of $1,171,000. The requested contract amount breaks down as follows: Fiscal Year No. of Replaced Vehicles Totals $1,935, * $1,171,000 Total 81 $3,106,000 *Estimated replacement Page 2
3 As the State of California contract allows price increases of up to 3% for newer model year vehicles, the FY Price per Vehicle represents a 3% increase over FY The breakdown of costs per vehicle is as follows: Fiscal Year Price per Vehicle Sales Tax Fees Total $34, $3, $ $37, $35, $3, $ $39, Infrastructure required to charge the vehicles procured under this request will be purchased and installed by the Facilities Maintenance and Utilities Group (FMUG). FMUG plans to install chargers in the locations identified by the Planning and Development Group (PDG) with the first group of 51 chargers, required to support the FY electric sedan purchase, being installed at locations that may include the Administration West Building, Administration East Building, the 96th Street Police Station and the Maintenance Services Division (MSD) maintenance yard. Subsequent charger installations, including those required to support the FY electric sedan purchase, along with future LAWA fleet and public electric vehicle requirements, will be determined as part of the PDG's electric vehicle charger study that is expected to be completed by early The estimated vehicle charger costs, including both materials and labor, for the first 51 chargers required to support the FY electric sedan purchase, using LAWA's historic average actual cost of $10,227 per charger, plus a 10% contingency, totals $573,735 and is included in the FY Maintenance Services Division operating budget. Funding for the additional 30 electric vehicle chargers required to support the FY electric sedan purchase will be requested through the annual budget process. Procurement Process LAWA joined the City of Los Angeles' inter-agency bid with the Los Angeles Department of Water and Power, Los Angeles Harbor Department, County of Los Angeles, and the Los Angeles County Metropolitan Transportation Authority. The participating agencies' purpose was to leverage their combined buying power in order to achieve an economy of scale. The City posted Request for Bid No on the Los Angeles Business Assistance Virtual Network on January 27, It closed on February 15, 2017 with two bids, one of which did not meet specification. Consequently, the City of Los Angeles withdrew its bid on April 14, Staff conducted research and found two potential contracts to join. The National Joint Powers Alliance (NJPA) had procured a contract for electric vehicles, but staff also learned that the State of California had just established a new contract (No D) with Winner Chevrolet. Staff deemed the State of California contract was more advantageous to LAWA due to the volume of purchasing (better pricing) under this contract, than if LAWA was to issue a separate bid. The NJPA's base pricing is $37,495 per electric vehicle, which is the manufacturer's suggested retail price. Page 3
4 Action Requested Staff requests the Board authorize the Chief Executive Officer to join the State of California Contract No D with Winner Chevrolet and to award a two-year contract for the purchase of up to 81 four-door electric sedans to be used at LAX for a total amount not-toexceed $3,106,000. Fiscal Impact Staff recommends replacement of the aging vehicles due to increased operational and maintenance costs. Costs for this contract will he recovered through landing fees, terminal rates and charges, and non-aeronautical revenues. LAWA may obtain up to $590,000 in rebates from the California Clean Vehicle Rebate Project. The Project allows public agencies operating in California to apply for rebates in the amount of $10,000 per electric vehicle, up to a maximum of 30 vehicles per agency, per calendar year, pending funding availability. LAWA has already applied for one rebate for an electric sedan previously purchased. LAWA may apply for the remaining 29 rebates for calendar year 2017 once the contract with Winner Chevrolet is executed. Then LAWA may apply for 30 additional rebates in calendar year Alternatives Considered Issue a Separate Bid Staff considered proceeding with LAWA's bid process for the purchase these electric sedans. However, State of California Contract No D with Winner Chevrolet was established through a competitive process. The State's contract also has better pricing than the one bid that met the City's inter-agency RFB specifications. Since Contract No D meets LAWA's needs for electric sedans, staff determined that a separate competitive process by LAWA alone would not result in better pricing due to the volume of purchasing through the State of California (economy of scale). APPROPRIATIONS: Funds for this contract, the vehicle chargers and related accessories are available in LAWA's Fiscal Year Maintenance Services Division Operating Budget in Cost Center Airside Maintenance & Repair, Commitment Item Assets. Funding for additional vehicles and chargers will be requested through the annual budget process. STANDARD PROVISIONS: 1. This action, as a continuing administrative activity, is exempt from the requirements of the California Environmental Quality Act (CEQA) pursuant to Article II, Section 2.f of the Los Angeles City CEQA Guidelines. 2. This item is subject to approval as to form by the City Attorney. Page 4
5 3. Actions taken on this item by the Board of Airport Commissioners will become final pursuant to the provisions of Los Angeles City Charter Section This action is not subject to the provisions of the Living Wage/Service Contractor Worker Retention Ordinances. 5. State of California, Department of General Services did not require Small Business Enterprise (SBE) participation for this project. Procurement Services further reviewed this action (File No ) and did not set a mandatory Small business Enterprise (SBE) goal for the project, as no subcontractor opportunities were identified. 6. Winner Chevrolet will comply with the provisions of the Affirmative Action Program. 7. Winner Chevrolet has been assigned Business Tax Registration Certificate number Winner Chevrolet will comply with the provisions of the Child Support Obligations Ordinance. 9. This action is not subject to the insurance requirements of the City of Los Angeles. 10. This action is not subject to the provisions of Charter Section 1022 (Use of Independent Contractor). 11. Winner Chevrolet has submitted the Contractor Responsibility Program Questionnaire and Pledge of Compliance and will comply with the provisions of the Contractor Responsibility Program. 12. Winner Chevrolet has been determined by Public Works, Office of Contract Compliance to be in full compliance with the provisions of the Equal Benefits Ordinance. 13. This action is not subject to the provisions of the First Source Hiring Program. 14. Winner Chevrolet has submitted the Bidder Contributions CEC Form 55 and will comply with its provisions. Page 5 Chevrolet - Electric Vehicles. docx
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