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sr-021412-3d19 AMM ityo City Council Report Santa Monica City Council Meeting: February 14, 2012 Agenda Item: B -D To: Mayor and City Council From: Edward F. King, Director of Transit Services Subject: Reject Bid No. 3060 to Provide Tire Leasing and Related Services Recommended Action Staff recommends that City Council 1. Reject all bids received for tire leasing and related services at the Big Blue Bus: 2. Direct staff to reissue a request for bids in order to obtain the best bidder for this project. Executive Summary Tire leasing has been a standard practice in the transit industry since the 1940's and a common practice at the Big Blue Bus for at least 40 years. Leasing is more economical than purchasing tires since the cost is based on a flat rate per mile driven and the costs of inspection, repair, replacement, and inventory control. Staff recommends that City Council reject all bid responses to bid #3060 to provide tire leasing and related services due to an error in the bid documents as well as inconsistent bid responses. Discussion In August 2011, the City published Notices Inviting Bids to provide tire leasing services as required by the Big Blue Bus in accordance with City specifications. The bid was posted on the City's on -line bidding site Planet Bids, and notices were advertised in the Santa Monica Daily Press in accordance with City Charter and Municipal Code provisions. Two bids were received and publicly opened on August 22, 2011. During review of the bids, it was determined that the bid documents erroneously neglected to indicate the number of wheels per bus type. In addition, one bid listed a discount for potential fuel savings, which was not authorized in the specifications. Staff recommends rejecting both bids and reissuing a revised Notice Inviting Bids, with additional clarification to the bid submittal requirements. This would provide potential 1 bidders with a more clearly defined set of requirements and this would promote opportunity for the City to receive bid(s) which more accurately meet specifications. Financial Impacts & Budget Actions There are no budget or financial impacts associated with the recommendation made in this report. Prepared by: Patrick Campbell, Chief Operating Officer Approved: Edward F. King Director of Transit 2 Forwarded to Council: Rod Gould City Manager