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SR-06-24-2014-3HCity Council Meeting: June 24, 2014 ` ` Agenda Item: Al To: Mayor and City Council From: Martin Pastucha, Director of Public Works Subject: Purchase of a Second Additional Compressed Natural Gas (CNG) Honda Civic Recommended Action Staff recommends that the City Council approve a change order to Purchase Order 373792 -OP in the amount of $27,433 with Scott Robinson Honda, a California -based company, for the purchase and delivery of a second additional CNG Honda Civic vehicle. This would result in an amended purchase order with a new total amount not to exceed $192,031. Executive Summary On March 19, 2014 the City awarded Bid #4125 to Scott Robinson Honda for the purchase and delivery of five CNG Honda Civic vehicles for $137,165 to replace five vehicles that had reached the end of their useful life. In a bid addendum, Scott Robinson Honda provided pricing for the optional purchase of up to two additional vehicles at the same price, terms, and conditions for one year. One additional vehicle has already been purchased as an enhancement for the Architecture Services Division, for a total purchase order amount of $164,597 for six vehicles. Staff recommends Council exercise the option to purchase a second additional CNG Honda Civic vehicle from Scott Robinson Honda for $27,433. This purchase would result in an amended purchase order total amount of $192,031. Discussion The City replaces vehicles that have reached the end of their useful life through the vehicle replacement program. On March 19, 2014 the City awarded Bid #4125 to Scott Robinson Honda for the purchase and delivery of five CNG Honda Civic vehicles for $137,165 to replace five vehicles that had reached the end of their useful life. A bid addendum added the option to purchase up to two more vehicles at the same price, terms, and conditions. One additional vehicle has already been purchased as an enhancement for the Architecture Services Division for a total purchase order amount of it $164,597 for six vehicles. This vehicle was included in the original purchase order, which fell under the procurement threshold of $175,000. The purchase of a second additional CNG Honda Civic is for an approved enhancement vehicle to be used by the City's Street and Fleet Services Division as a supervisor's vehicle for the monitoring and inspection of maintenance activities in the field. This unit was not included in the original purchase, as it is a recently approved enhancement to the fleet inventory. This purchase meets the goals of the City's Reduced - Emissions Fuels Policy by reducing emissions and by using CNG fuel. Vendor Selection In January 2014, the City published Notices Inviting Bids to furnish and deliver five Honda Civic CNG vehicles as required by the Fleet Management Division in accordance with City specifications. The bid was posted on the City's on -line bidding website and notices were advertised in the Santa Monica Daily Press in accordance with City Charter and Municipal Code provisions. Three bids were received and publicly opened on February 11, 2014. Bids were evaluated based on price, quality of material, and compliance with City specifications. Scott Robinson Honda was the best bidder. The bid submitted by Scott Robinson Honda included an option to purchase additional vehicles within one year at the same price, terms, and conditions. Scott Robinson Honda has confirmed an additional vehicle is available at the same price, terms, and conditions in Bid #4125, in the amount of $27,433. This purchase would result in an amended purchase order total amount of $192,031. `a Financial Impacts & Budget Actions The change order to be awarded to Scott Robinson Honda is $27,433, for an amended purchase order total not to exceed $192,031. Funds are available in the FY 2013 -14 Capital Improvement Program budget in account 0540167.589100. Prepared by: Ryan Kraemer, Senior Administrative Analyst Approved: ±�J-L'--L Martin Pastucha Director of Public Works R Forwarded to Council: Rod Gould City Manager