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SR-12-10-2013-3GCity Council Meeting: December 10, 2013 Agenda Item: 3 —C" t To: Mayor and City Council From: Martin Pastucha, Director of Public Works Subject: Reject Bid for the Purchase of One CNG Truck - Mounted Loader Recommended Action Staff recommends that the City Council: 1. Reject all bids received on October 7, 2013 for the purchase and delivery of one new compressed natural gas (CNG) truck - mounted loader. 2. Direct staff to reissue a bid in order to obtain the best bidder for the purchase and delivery of one new CNG truck - mounted loader. Executive Summary On October 7, 2013, one bid was received for the purchase and delivery of one CNG truck - mounted loader for the Resource Recovery and Recycling Division. Staff recommends rejecting all bids for Bid #4109 to allow staff the opportunity to revise the specifications to obtain more competitive pricing. Discussion In September 2013, the City published a Notice Inviting Bids to furnish and deliver one new CNG truck - mounted loader for the Resource Recovery and Recycling Division. The bid was posted on the City's on -line bidding site, and notices were advertised in the Santa Monica Daily Press in accordance with City Charter and Municipal Code provisions. One bid was received and publicly opened on October 7, 2013, in the amount of $345,406 (Attachment A). A previous bid was awarded by Council on October 26, 2010, for a similar vehicle utilized by the Water Division in the amount of $247,567. Staff recommends rejecting all bids, as the only bid of $345,406 represents a nearly 40% increase over the previous purchase within a three -year period. Staff would revise the bid specifications to decrease the gross vehicle weight rating and modify the loader in order to obtain more competitive pricing while still meeting the needs of the 1 Resource Recovery and Recycling Division. Staff would rebid the purchase of one new CNG truck - mounted loader in early 2014. Financial Impacts & Budget Actions There is no immediate financial impact or budget action necessary as a result of the recommended action. Prepared by: Thomas Bullers, Administrative Analyst Approved: "Qu� Martin Pastucha Director of Public Works Attachments: A —Bid Summary E Forwarded to Council: Rod Gould City Manager Bid No. 4109 PB Loader for RRR ATTACHMENT A Bid Description: Furnish and deliver one (1) new and unused truck mounted loader, as required by Fleet Management Bid Closing Date: October 7, 2013 Nixon- Egli Equipment Co. Ontario, CA. Item ! Pricing Response Description Quantity Unit Price Extended Price 1 New and unused vehicle, complete with all components as specified 1 $315,430.00 $315,430.00 2 Subtotal $315,430.00 3 Sales Tax (9.5%) $29,965.85 4 Tire Fee 1 $1.75 $10.50 5 Delivery 1 INCL INCL 6 Other (Please describe) 1 7 Grand Total $345,406.35 Item Supplemental Questions Response 8 Do you come into City of Santa Monica to conduct business? Yes 9 Do you deliver parts and /or products in your own company vehicle? No 10 Will you be able to comply with the insurance and business license requirements for the City of Santa Monica? Can Comply Item General Questions Response 1 11 Please state the year, make, and model of quoted vehicle: 2014 Peterbilt 320 12 If additional fees were indicated above, please describe below: 13 Please state guaranteed delivery date: 300 -330 (Days after receipt of order) 14 Payment Terms Net 30 15 Additional purchases of vehicles 5% Increase * If purchased on or after December 2013