SR-04-09-2013-3Aof City Council Report
City Santa Monica
City Council Meeting: April 9, 2013
Agenda Item: z .; —'}
To: Mayor and City Council
From: Martin Pastucha, Director of Public Works
Subject: Reject Award for the Purchase of Toyota RAV4 Electric Vehicles
Recommended Action
Staff recommends that the City Council reject the award of a purchase order to National
Auto Fleet Group in an amount not to exceed $554,651 for ten Toyota RAV4 electric
vehicles, and direct staff to initiate a formal bid for the purchase of the vehicles.
Executive Summary
On March 19, 2013, the Council approved a purchase order for the acquisition of ten
new Toyota RAV4 electric vehicles from National Auto Fleet Group, which included an
incentive of $10,000 per vehicle only available until March 31, 2013. The incentive has
been extended through the end of May 2013. Staff recommends cancelling this
purchase order to conduct a formal bidding process in compliance with the Municipal
Code.
Discussion
The City was notified in early March by Toyota Santa Monica of a $10,000 per vehicle
incentive offered by Toyota Financial Services. This incentive was initially only
available until March 31, 2013 for new purchases of Toyota RAV4 electric vehicles
financed by Toyota Financial Services. In order to take advantage of this incentive prior
to the March 31St deadline, on March 19, 2013 the City Council approved the purchase
of ten Toyota RAV4 electric vehicles from National Auto Fleet Group based on the
pricing offered under a National Joint Powers Alliance (NJPA) contract in compliance
with the Santa Monica Municipal Code 2.24.080 (b), which provides for exceptions to
competitive bidding when such competitive bid procedures have already been utilized,
such as in purchasing from Federal, State, County, City or special district government
agencies, or from cooperative purchasing agencies consisting of such agencies.
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However, staff was notified on March 20, 2013, following the Council's March 19, 2013
action, that Toyota Financial Services extended the deadline, making the $10,000 per
vehicle incentive available until May 31, 2013. This extension allows for a competitive
bidding process to be initiated. Therefore, staff recommends that the City Council reject
the award to National Auto Fleet Group and direct staff to initiate a formal bid for the
purchase of ten Toyota RAV4 electric vehicles, taking advantage of the extension of the
$10,000 per vehicle incentive.
Financial Impacts & Budget Actions
There are no budget or financial impacts associated with the recommendation made in
this report.
Prepared by: Rick Sikes, Fleet Maintenance Superintendent
Approved:
-04)SS-3
Martin Pastucha
Director of Public Works
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Forwarded to Council:
Rod Gould
City Manager