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sr-081412-3k1_ City of Santa Moveica City Council Report City Council Meeting: August 14, 2012 Agenda Item: To: Mayor and City Council From: Martin Pastucha, Director of Public Works Subject: Purchase of Parts and Repairs Services for Police Motorcycles Recommended Action Staff recommends that the City Council award Bid #37842 -OG for the purchase of parts and repair services for police BMW motorcycles from Long Beach BMW, a California — based company, for a total amount not to exceed $142,000 for the life of the contract through FY 2013 -14 (includes a 10% increase for FY2013 -14). Executive Summary In April 2012, the City solicited bids for the purchase of parts and repair services for BMW motorcycles used by the Police Department. Two bids were received. Staff recommends Long Beach BMW to provide the City with parts and repair services for a total amount not to exceed $142,000 through FY 2013 -14. Discussion The City purchases parts and repair services as part of its vehicle repair program, based on established City purchasing guidelines to acquire the most competitive pricing. In FY 2011 -12, approximately $67,580 was spent on the purchase of parts and repair services for police motorcycles. The amount of $142,000 is not to be exceeded for the life of the contract. Vendor Selection In April 2012, the City published Notices Inviting Bids for the purchase of parts and repair services for police BMW motorcycles. The bids were posted on the City's online bidding website in accordance with City Charter and Municipal Code provisions. A total of two bids were received and publicly opened on April 11, 2012, for the purchase of parts and repair services for police BMW motorcycles, per attachment A. 0 The bids were evaluated based on competitive pricing, ability to meet specifications, and the historical reliability and timeliness of repairs. Based on these criteria, Long Beach BMW Motorcycles is recommended as the best bidder for these parts and services, in accordance with City specifications. The amount saved on parts and emergency /after -hours repairs will offset the cost of Long Beach BMW's higher hourly labor rate. Historically, the City spends approximately 30% more on parts than it does on labor for motorcycle repairs. In FY2011 -12, approximately $67,580 was spent on the purchase of parts and repair services for police motorcycles. Long Beach BMW Motorcycles' bid is for purchases through the end of FY2011 -12, of which there were none, with a second year renewal option for the period of July 1, 2012 through June 30, 2013 at the same price, terms and conditions, and a third year renewal option from July 1, 2013 through June 30, 2014 at a 10% price increase. Financial Impacts & Budget Actions The purchase order to be awarded to Long Beach BMW Motorcycles is not to exceed $142,000 over two fiscal years, FY 2012 -13 and FY 2013 -14 (includes a 10% increase in FY 2013 -14). Funds in the amount of $67,600 are available in the FY 2012 -13 budget. The purchase order will be charged to account 54459.522920. Budget authority for subsequent years will be requested in each budget cycle for Council approval. Future funding is contingent upon Council approval. Prepared by: Ryan Kraemer, Sr. Administrative Analyst Approved: Forwarded to Council: Martin Pastucha Rod Gould Director of Public Works City Manager Attachments: Attachment A — Bid Summary 2 Attachment A — Bid Summary BID #: 37842 -OG BID CLOSE DATE: 04/11/2012 BID TITLE: FURNISH AND DELIVER VARIOUS BMW MOTORCYCLE PARTS AND SERVICE AS REQUESTED BY FLEET MANAGEMENT THROUGH 6130112 WITH TWO ONE - YEAR RENEWAL OPTIONS. CLARK'S MOTORCYCLE INC dba BMW MOTORCYCLES OF VENTURA LONG BEACH BMW MOTORCYCLES NEWBURY PARK, CA LONG BEACH, CA PRICING: HOURLY LABOR RATE: $90.00 $96.00 EMERGENCY (AFTER HOURS ) RATE: $135.00 $96.00 % DISCOUNT OFF OF MANUFACTURER'S LIST PRICE: 10% 15% SAME DAY /NEXT DAY DELIVERY PROVISION CAN COMPLY CAN COMPLY VENDOR LOCATION: 830 TOURLAMINE DR., NEWBURY PARK, CA 91320 2125 E SPRING ST., LONG BEACH, CA 90806 PAYMENT TERMS: NET 30 NET 30 RENEWAL OPTIONS: YEAR 2 (07/01/12- 06/30/13: SAME PRICE, TERMS, & CONDITIONS SAME PRICE, TERMS, & CONDITIONS YEAR 3 (07/01/13- 06/30/14: SAME PRICE, TERMS, & CONDITIONS 10% INCREASE FOB POINT: SANTA MONICA LONG BEACH BUSINESS LICENSE REQUIREMENTS: CAN COMPLY CAN COMPLY INSURANCE REQUIREMENTS: CAN COMPLY CAN COMPLY ARIZONA: NO PRESENCE NO PRESENCE