SR 01-12-2016 3J
City Council
Report
City Council Regular and Special Joint Meeting: January 12, 2016
Agenda Item: 3.J
1 of 4
To: Mayor and City Council
From: Martin Pastucha, Director, Public Works, Street & Fleet Services
Subject: Bid Award for Vehicle Rental Service for Police Department
Recommended Action
Staff recommends that the City Council:
1. Award Bid #4210 to Enterprise Rent-A-Car, a Missouri-based company, for
Vehicle Rental Service.
2. Authorize the Purchasing Services Manager to issue a purchase order for the
Police Department with Enterprise Rent-A-Car for Vehicle Rental Service in an
amount not to exceed $118,484 for one year, with two additional one-year
renewal options to extend at a 3% price increase for a total not to exceed
$366,223 with future year funding contingent on Council budget approval.
3. Authorize the Purchasing Services Manager to issue a purchase order for Fleet
Management with Enterprise Rent-A-Car for Vehicle Rental Service in an amount
not to exceed $133,700 for one year, with 2 additional 1 -year renewal options to
extend at a 3% price increase for a total not to exceed $413,253 with future year
funding contingent on Council budget approval.
Executive Summary
The Police Department utilizes rental vehicles for specialized anti-crime operations
throughout the Department. Public Works/Street and Fleet Services utilizes rental
vehicles as a backup to the City’s loaner vehicle program when a City vehicle is taken
out of service due to long term maintenance or the expiration of the compressed natural
gas fuel tank. In September 2015, the City solicited bids for vehicle rental services. Staff
recommends Enterprise Rent-A-Car as the best and lowest bidder for vehicle rental
services for the Police Department in an amount not to exceed $118,484 for one year,
with two additional one-year renewal options to extend at a 3% price increase for a total
not to exceed $366,223, and for Fleet Management in an amount not to exceed
$133,700 for one year, with two additional one-year renewal options to extend at a 3%
price increase for a total not to exceed $413,253. The total annual expenditure would be
$252,184 for the first year and a total three-year amount not to exceed $779,476.
Discussion
2 of 4
During the past fifteen years, the Santa Monica Police Department has utilized the
services of rental car companies for specialized anti-crime operations. The vehicles are
used on a daily basis as the primary mode of transportation in certain units and as-
needed in other units. The vehicles are a necessary element of the Department’s
operations; vehicles provided by the rental car service must fit the specifications
necessary for operational expectations.
Fleet Management utilizes rental vehicles if a loaner vehicle is unavailable for staff
when their vehicle has been taken out of service due to long term repair (accidents) or
the expiration of the vehicle’s compressed natural gas (CNG) fuel tank. CNG fuel tanks
have a specific and regulated useful life at the end of which they can no longer be
operated legally and need to be removed from service. Several CNG fleet vehicles will
be replaced during the first year of the contract, after which time the demand for rental
vehicles should decrease.
Rental vehicles are also utilized if a vehicle has been totaled in an accident or if the
procurement process for a replacement vehicle is longer than expected.
Vendor Selection
On September 14, 2015, the City published Notices Inviting Bids for rental vehicles as
required by the Police Department and Fleet Management in accordance with City
specifications. 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. A total of 465 vendors were notified and 11 vendors
downloaded the bid. Three bids were received and publicly opened on October 1, 2015
per Attachment A.
Bids were evaluated based on the criteria in SMMC 2.24.072, including price, previous
experience, ability to deliver, quality of product, and compliance with City specifications.
Avon and Growth, Development Marketing, Inc., had much higher bid pricing in each
category than Enterprise Rent-A-Car. For example, the bid amount for the monthly
rental of a basic sedan is $585 as bid by Enterprise, $640 as bid by Avon, and $702 as
bid by Growth, Development Marketing, Inc. Staff recommends Enterprise Rent-A-Car
3 of 4
as the lowest and best bidder for vehicle rental services in the amount of $118,484 for
the Police Department and in the amount of $133,700 for Fleet Management .
Financial Impacts and Budget Actions
The purchase order to be awarded to Enterprise Rent -A-Car is for an amount not to
exceed $118,484 for one year, with two additional one-year renewal options to extend
at a 3% price increase for a total not to exceed $366,233 for the Police Department and
an amount not to exceed $133,700 for one year, with two additional one-year renewal
options to extend at a 3% price increase for a total not to exceed $413,253 for Fleet
Management.
The total annual expenditure would be $252,184 for the first year and a total three -year
amount not to exceed $779,476.Funds are available in the FY 2015-16 Capital
Improvement Program budget and the FY 2015-16 operating budget in the Police
Department.
The purchase orders will be charged to the following accounts:
01305.522610 $ 4,484
01307.522610 $114,000
C540167.589200 $133,700
TOTAL $252,184
Prepared By: Heidi Duran, Administrative Analyst
Approved
Forwarded to Council
Attachments:
4 of 4
A. Attachment A - Bid Summary
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t
e
r
m
s
,
a
n
d
c
o
n
d
i
t
i
o
n
s
o
f
f
e
r
e
d
No
r
e
n
e
w
a
l
o
p
t
i
o
n
o
f
f
e
r
e
d