SR 02-28-2017 3D
Ci ty Council
Report
City Council Meeting : February 28, 2017
Agenda Item: 3.D
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To: Mayor and City Council
From: Susan Cline, Director , Public Works, Street & Fleet Services
Subject: Bid Award for the Purchase of 18 Nissan Leaf Electric Vehicles
Recommended Action
Staff recommends that the City Council:
1. Award Bid #4258 to Nissan of Stockton , a Yokohama, Japan -based company,
for the purchase and delivery of 1 4 Nissan Leaf Electric Vehicles with the
option to purchase up to four additional Nissan Leaf Electric Vehicles over a
two year period ;
2. Authorize the Purchasing Services Manager to issue a purchase order with
Nissan of Stockton for the purchase and delivery of 1 4 Nissan Leaf Electric
Vehicles in an amount not to exceed $403,950 for year one, with one
addi tional one -year renewal option in the amount of $115,415, for a total
amount not to exceed $519,365 .
Executiv e Summary
This purchase would replace 1 3 sedans that have reached the end of their cost -
effective useful lives through the Vehicle Replacement Program and add one additional
unit to the City’s fleet . In November 2016, the City solicited bids for the purchase of 13
Four Door Electric Sedans with the option to purchase up to five more vehicles at the
same price, terms, and conditions. Subsequently, the need for one additional vehicle
was identified. Additional purchas ing la nguage is included in the bid specification in
order to allow for the procurement of an identical vehicle if, and when, additional
vehicles are approved for replacement during the procurement process. Staff
recommends Nissan of Stockton as the best and low est bidder for the purchase and
delivery of 1 8 Nissan Leaf Electric Vehicles for a total amount not to exceed $519,36 5 .
This purchase meets the goals of the City’s Reduced -Emissions Fuels Policy by utilizing
vehicles powered by electricity .
Discussion
Th e City replaces vehicles that have reached the end of their cost -effective useful life
based on age, mileage, and repair history in accordance with the Vehicle Replacement
Program. This purchase would replace 1 3 vehicles in various divisions and add one
a dditional vehicle to the City’s fleet . The existing vehicles have a cost -effective useful
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life span of 14 years based on industry standards , utilization , and the environment in
which they are operated. The existing vehicles to be replaced were purchased be tween
1999 and 2003 and are between 14 and 1 8 years old. O ne additional vehicle is to be
added in order to right -size the Code Enforcement fleet.
Vehicle Data
The vehicle data table below shows the vehicle unit number, model year, cost -effective
useful li fe, age, replacement fiscal year, original cost, total maintenance cost over the
life of the vehicle, and the percentage of the original cost that the maintenance cost has
reached.
Replacing
Unit(s) Year Cost -Effective
Useful Life Age Replacement
FY
Origin al
Cost
Total
Maintenance
Cost
%
15338 1999 14 18 FY12/13 $20,305 $9,810 48%
15700 2001 14 16 FY14/15 $22,265 $16,243 73%
15649 2001 14 16 FY14/15 $22,215 $22,159 100%
15674 2001 14 16 FY14/15 $22,215 $13,999 63%
*15989 2002 14 15 FY15/16 $59,130 $7,049 12%
15717 2002 14 15 FY15/16 $23,203 $13,042 56%
*15948 2002 14 15 FY15/16 $59,130 $7,816 13%
*15986 2002 14 15 FY15/16 $59,130 $5,207 9%
15768 2002 14 15 FY15/16 $18,987 $17,219 91%
*15990 2002 14 15 FY15/16 $59,130 $11,787 20%
15706 2002 14 15 FY15/16 $21,983 $23,319 106%
15697 2002 14 15 FY15/16 $22,964 $15,860 69%
15812 2003 14 14 FY16/17 $22,511 $13,902 62%
ENH17 N/A 14 N/A N/A N/A N/A N/A
Replacing
Unit(s) Year Cost -Effective
Useful Life Age Replacement
FY
Origin al
Cost
Total
Maintenance
Cost
%
15338 1999 14 18 FY12/13 $20,305 $9,810 48%
15700 2001 14 16 FY14/15 $22,265 $16,243 73%
15649 2001 14 16 FY14/15 $22,215 $22,159 100%
15674 2001 14 16 FY14/15 $22,215 $13,999 63%
*15989 2002 14 15 FY15/16 $59,130 $7,049 12%
15717 2002 14 15 FY15/16 $23,203 $13,042 56%
*15948 2002 14 15 FY15/16 $59,130 $7,816 13%
*15986 2002 14 15 FY15/16 $59,130 $5,207 9%
15768 2002 14 15 FY15/16 $18,987 $17,219 91%
*15990 2002 14 15 FY15/16 $59,130 $11,787 20%
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15706 2002 14 15 FY15/16 $21,983 $23,319 106%
15697 2002 14 15 FY15/16 $22,964 $15,860 69%
15812 2003 14 14 FY16/17 $22,511 $13,902 62%
ENH17 N/A 14 N/A N/A N/A N/A N/A
*Units are leased vehicles. Most maintenance costs were covered by the deal er.
The 1 3 vehicles that would be replaced by this purchase are utilized in the following
divisions:
Fleet Management (2 Vehicles)
Responsible for ensuring that City vehicles and other automotive -related equipment are
available, dependable, and safe to ope rate.
Engineering (2 Vehicles)
Responsible for providing various services related to the enhancement of public
infrastructure and management of the public right -of -way throughout the City.
Facilities Maintenance (1 Vehicle)
Responsible for upkeep and maint enance of City buildings and properties, including
carpentry, electrical, heating -ventilation -and -air -conditioning (HVAC), paint and
plumbing, as well as construction/remodeling projects.
Code Enforcement (4 Vehicle s )
Responsible for enforcing City ordinan ces and State laws regulating construction
activity and the maintenance of buildings and property.
Office of Sustainability and the Environment (1 Vehicles)
R esponsible for developing and implementing water and energy conservation programs,
hazardous mate rials management programs, a dministration of most of the City's
environmental protection ordinances, and coordination of the Santa Monica Sustainable
City Program.
Re source Recovery and Recycling (1 Vehicle )
Responsible for residential and commercial refus e collection, street sweeping, and
recycling.
Water Resources (1 Vehicle)
Responsible for providing a safe and reliable water supply and for operating and
maintaining the City’s water production and distribution system for Santa Monica
residents and busine sses.
Wastewater (1 Vehicle)
Responsible for maintaining the sewer and storm drain systems within the City in a safe,
sanitary and uncontaminated condition .
The one additional vehicle that would be added by this purchase would be utilized in the
following division:
Code Enforcement (1 Vehicle)
Responsible for enforcing City ordinances and State laws regulating construction
activity and the maintenance of buildings and property. This purchase would add one
new vehicle to the City’s fleet for conducting code enforcement duties in order to right -
size Code Enforcement’s fleet. All essential staff would be able to operate their own
vehicle if this purchase is approved. All Code Enforcement staff schedules overlap and
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require them to be in the field at the same t ime , which prevent s them from being able to
share vehicles.
Staff recommends issuing a purchase order to Nissan of Stockton to guarantee the
pricing as proposed, with the understanding that a change order would be obtained
separately to authorize the purc hase of additional quantities. A maximum of 18 Nissan
Leaf Electric Vehicles would be purchased under this purchase order contingent on
funding availability.
This purchase meets the goals of the City’s Reduced -Emissions Fuels Policy by utilizing
vehicles powered by electricity, which reduces emissions.
Vendor Selection
In November 2016, the City published Notices Inviting Bids to furnish and deliver 13
Four Door Electric Sedans with the option to purchase up to five additional vehicles at
the same price, terms, and conditions, in accordance with City specifications.
Subsequently, the need for one additional vehicle was i dentified. Additional purchasing
language is included in the bid specification in order to allow for the procurement of an
identical veh icle if, and when, additional vehicles are approved for replacement during
the procurement process. 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 Munic ipal Code provisions. A total of 395 City of Santa Monica local
vendors were notified , 250 external vendors were notified, and 14 vendors downloaded
the bid. Two bids were received and publicly opened on November 29, 2016, per
Attachment A.
Staff recomm ends Nissan of Stockton as the best bidder for the purchase and delivery
of 1 8 new and unused Nissan Leaf Electric Vehicles as required by Fleet Management .
Bids were evaluated based on the criteria in SMMC 2.24.072, including price, ability to
deliver, qu ality of product, and compliance with City specifications. Nissan of Stockton
is the lowest bidder, meets specifications, and provides a reasonable delivery time of 60
days after receipt of order :
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Bidder Make/Model Bid Price
Nissan of Stockton 2017 Nissa n Leaf EV $519,364 *
Frontier Toyota 2017 Toyota Prius Prime $586,491
*Includes an instant rebate/governmental agency discount of $9,000 per vehicle that will
be applied post tax.
Financial Impacts and Budget Actions
The purchase order to be awarded to N issan of Stockton is for an amount not to exceed
$519,36 5 . Funds of $403,950 for 14 Nissan Leaf Electric Vehicles are available in the
FY 2016 -17 Capital Improvement Program budget in account C540167.589200 . Future
year funding for the additional four Niss an Leaf Electric Vehicles is contingent upon
Council budget approval.
The initial purchase order will be charged to the following accounts:
Account Number Description Amount
C540167.589100 Vehicle Enhancement Purchase $2 3 ,854
C540167.589200 Vehicle Re placement Purchase $310,096
C440401.589000 AB2766 Subvention Funds $7 0 ,000
Total $403,950
If Council budget approval is obtained in future years , the change order would be in the
amount of $115,415 for a total not to exceed $519,364 and would be ch arged to the
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following accounts:
Account Number Description Amount
C540167.589200 Vehicle Replacement Purchase $95,415
C440401.589000 AB2766 Subvention Funds $20,000
Total $115,415
*Variance between bid price and not to exceed amount is due to ro unding.
Prepared By: Heidi Duran, Administrative Analyst
Approved
Forwarded to Council
Attachments:
A. Oaks Form - Nissan of Stockton
B. Attachment A - Bid Summary
Bid #4258
CITY OF SANTA MONICA
{,t, cl
Snnfn �lo11INt� OAKS INITIATIVE DISCLOSURE FORM
All per sons or entities receiving public benefits defined below from the City of Santa Monica shall
provide the names of trustee s, directors, partners , and officers, and names of those with more
than a 10% equity, participation or revenue interest. This information is required by City Charter
Article XXII-Taxpayer Protection.
Name of Entity: Nissan of Stockton
Name(s) of persons or entities receiving public benefit:
Nissan of Stockton
Name(s) of trustees, directors, partners, and officers:
Bryan DeBoer John North Mark DeBoerChris Holzshu T.Y. Lai George Liang Bryan Osterhout President & CEO VP, Finaooi and CAO VP, Real Estate Sr VP, CFO OCH VP Operations Sr VP OCH Operations LAD Reglona! VP
Scott Hillier MarkSmith Tom Dobry
Sr VP LAD Operations VP, Information Technology, C!O VP, Marketing John North Ken V\'right
VP, Flnance and CAO LAD Reg!onal VP
AIOmarl
Assistant VP, OCH ClO
Name(s) of those with more than a 10% equity, participation, or revenue interest:
Lithia Motors, the parent company of Nissan of Stockton, is a Fortune 500 company. The names of those who hold a 10% or greater equity in the
company Is public Information but it would take some time to retrieve this information. If we win the bid we will obtain the required names and provide it
to the City.
Public benefits include:
1.Personal services contracts in excess of $25,000 over any 12-month period;
2.Sale of material, equipment or supplies to the City in excess of $25,000 over a 12-month period;
3.Purchase, sale or lease of real property to or from the City in excess of $25,000 over a 12-
month period;
4.Non-c ompetitive franchise awards with gross revenue of $50,000 or more in any 12-month
period;
5.Land use variance, special use permit, or other exception to an established land use plan,
where the decision has a value in excess of $25,000;
6.Tax "abatement, exception, or benefit" of a value in excess of $5,000 in any 12-month period; or
7.Payment of "cash or specie" of a net value to the recipient of $10,000 in any 12-month period.
Prepared by: Patrick Mcclanahan Signature: P�� M �{P.,,,.. e. L-
Date:_�( 2 "'--1 /�/=3 +--)�2"----"0 -'-'U->=---t ( Title : Commercial Vehicle Account Manager
FOR CITY USE ONLY:
Bid/PO/Contract# Permit#
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IN
C
L
U
D
E
D
IN
TH
E
QU
O
T
E
D
PR
I
C
E
,
PL
E
A
S
E
DE
S
C
R
I
B
E
A go
v
e
r
n
m
e
n
t
agency discount of $9,000 per vehicle is
in
c
l
u
d
e
d
in the above pricing. Rebate is POST ‐TAX, which is
sh
o
w
n
in the above calculation. (Standard warranty is
in
c
l
u
d
e
d
in stated price ‐ so that line item was edited).
To
t
a
l
$
5
8
6
,
4
9
0
.
5
8
To
t
a
l
$
5
1
9
,
3
6
3
.
8
1