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SR-701-001-02 (8) Purch:DH:RAH:F\FINANCE\PURCH\STFRPTS\SRBDMOTORCYCLES Council Meeting: September 9, 2003 Santa Monica, California TO: Mayor and City Council FROM: City Staff SUBJECT: Recommendation to Award Purchase Order to A & S BMW Motorcycles to Furnish and Deliver Eight (8) Police Motorcycles Introduction This report recommends award of a purchase order to A & S BMW Motorcycles to furnish and deliver eight (8) motorcycles due for replacement for the Police Department, in the total amount of $ 159,329.36 including applicable sales tax. Background As part of the Vehicle Replacement Program, eight model year 2000 BMW police motorcycles have reached their 60,000 mile buy-back limit. They will be returned to A & S BMW Motorcycles and the City will be refunded up to $ 9,258.70 per motorcycle, depending on the condition of the returned motorcycles. Similarly, the purchase of the new model year 2004 motorcycles will qualify for a guaranteed buy-back of up to $ 9,433 after three years or 60,000 miles, whichever comes first. Discussion Ordinance Number 1998 (CCS), Section 5, Chapter 2.24, Section 2.24.080 (b) of the Santa Monica Municipal Code allows exception to competitive bidding when goods or services have been competitively bid by another federal, state or county government as in this case. A & S - 1 - BMW Motorcycles pricing is based on the State of California Contract Number 1-02-23-30, effective 1-25-02 through 1-24-04. Budget/Financial Impact Budget authority for Fiscal Year 03/04 is in the Capital Improvement Budget account number C54016704.589000, ?Fleet Vehicle Replacement Program?. Recommendation It is recommended that Council award a purchase order to A&S BMW Motorcycles in the total amount of $ 159,329.36 including applicable sales tax. Prepared By: Diane Howell, Purchasing Agent David Rodriguez, Fleet Supervisor - 2 -