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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. 1 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 K Forwarded to Council: Rod Gould City Manager