SR-06-24-2014-3HCity Council Meeting: June 24, 2014
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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.
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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:
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Martin Pastucha
Director of Public Works
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Forwarded to Council:
Rod Gould
City Manager