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CouncIl Meeting December 9, 1997 Santa MOnica, California
DEC 0 9 1997
TO Mayor and CIty Council
FROM City Staff
SUBJECT Recommendation to Award Bid to Furnish and Deliver Eight (8) motorcycles,
BId #2666
Introduction
ThIS report recommends an award of bId to furnIsh and deliver eIght (8) motorcycles for
the Police Department, In the total amount of $112,544 DO, including applicable sales tax
Background
In response to published Notices InVItIng Bids (publIShed October 24 and
October 27 r 1997) In accordance With City specifications, bids were received and publicly
opened and read on November 10, 1997 Proposal forms were mailed to fourteen
vendors and notices were advertised In accordance With City Charter and MUniCipal Code
proVIsIons SIX proposals were received as follows
Vendor Brand of Motorcvcle Total Cost
Pomona Valley Kawasaki Kawasaki $ 73,393 52
Honda of Hollywood Kawasaki $ 74,751 28
Burbank KawasakI KawasakI $ 75,14280
Bartel's Harley DaVIdson Harley DaVidson $112,54400
Brown Motor Works BMW $143,236 40
Marty's Foreign Motors BMW $144,51808
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DEC 0 9 1597
As part of the Vehicle Replacement Program, these motorcycles will be replaced In three
(3) years Therefore, bid specifications requested a guaranteed buy back program to help
determine the actual costs of each vehicle A buy back program is an agreement by the
bIdder to repurchase as many motorcycles as the City wishes to sell back ThiS
agreement IS not contingent on the City purchasing any additional motorcycles and the
City may elect not to sell back any of the motorcycles to the bidder
To determme the most responsible bidder, the bIds were evaluated as follows total cost of
the motorcycles minus the guaranteed buy back cost equal the actual cost (over a three
year penod)
The bids submitted by Pomona Valley Kawasaki and Honda of Hollywood are non-
responsive because they do not offer a buy back program Burbank Kawasaki offered
1997 Kawasaki motorcycles ($75,14280) With a buy back total from $4,00000 to
$20,000 DO, subject to their evaluation at time of disposal ThiS results In an actual cost of
$55,142 80 Bartel's Harley Davidson offered 1998 Harley DavIdson motorcycles
($112,54400) With a buy back total of $64,80000 for vehicles With less than 30,000 miles
ThiS results In an actual cost of $47,744 00 Currently eXIsting City owned motorcycles
average approximately 10,000 miles per year The bids from Brown Motor Works
($143,23640) and Marty's Foreign Motors ($144,51808) both offered 1998 BMW
motorcycles However, on the buy back they stated that the price per Unit IS determmed
by the average trade-In percentage of a comparable BMW model as listed in the most
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current Issue of the NADA Appraisal GUIde for the time spent In service Staff IS unable to
determme an actual cost based on that equatlon
Fleet Management and Police Department staff have evaluated all bids and compared
cost performance factors of all motorcycles versus CIty's operatIonal needs The bId
submitted by Bartel's Harley Davidson offers the most cost effective option for the
motorcycles based on the total cost minus the buy back The actual cost of ownership
over three years will be $5,96800 per motorcycle ThiS IS based on the total purchase
cost for eight (8) motorcycles at $112,544 DO, mmus the total buy back pnce of $64,80000
for a total of $47,74400 as the actual cost of ownership for all eight (8) motorcycles
BudaetlFlnanclallmoact
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Fiscal Year 1997-98 appropriatIon authority for thiS purchase IS In the Capital
Improvement Budget "Fleet Vehicle Replacement Program," account number 54-710-461-
20097 -8900-99167
Recommendation
It IS recommended that CouncIl reject the bids submItted by Pomona Valley KawasakI,
Honda of Hollywood and Burbank Kawasaki and award Bid #2666 to Bartel's Harley
Davidson for a total amount of $112,54400 Includmg apphcable sales tax, as the most
responsible bidder
Prepared By Pam Wortham. Purchasing Agent
Margarita Lee, Buyer
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