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SR 07-24-2018 3A City Council Report City Council Meeting: July 24, 2018 Agenda Item: 3.A 1 of 3 To: Mayor and City Council From: Susan Cline, Director, Public Works, Street & Fleet Services Subject: Award Bid for the Purchase of Six Compressed Natural Gas Passenger Vans Recommended Action Staff recommends that the City Council: 1. Award Bid #4304 to Reynolds Buick, Inc., a California-based company, for the purchase and delivery of six Compressed Natural Gas-powered passenger vans with the option to purchase up to three additional vans over a one-year option period; and 2. Authorize the Purchasing Services Manager to issue a purchase order with Reynolds Buick, Inc. for the purchase and delivery of six Compressed Natural Gas-powered passenger vans in the amount not to exceed $321,145 for year one, with one additional renewal option year in the amount of $160,573, for a total amount not to exceed $481,718, with future year funding contingent on Council budget approval. Summary This purchase would replace six passenger vans that have reached the end of their cost-effective, useful lives through the Vehicle Replacement Program. Staff recommends awarding bid #4304 to Reynolds Buick, Inc. for the purchase and delivery of six CNG-powered passenger vans that would be used by the Human Services and Water Resources divisions to carry out daily operations. This purchase meets the goals of the City’s Reduced-Emissions Fuels Policy by utilizing vehicles powered by compressed natural gas. Discussion The 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. In April 2018, the City solicited bids for the purchase of six compressed natural gas (CNG)-powered passenger vans, with the option to purchase up to three more vans at the same price, terms, and conditions. Additional purchasing language is 2 of 3 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. This purchase would replace five vehicles used by the Human Services Division to shuttle community program participants with year-round programming to various locations and one vehicle used by the Water Resources Division to carry staff and materials between various locations in the City. The vehicles recommended for replacement were purchased between 1997 and 2002, and are between 16 and 21 years old. They have a cost-effective useful life span of 12 years based on industry standards, utilization, and the ocean-air environment in which they are operated. The vehicle data table below shows the vehicle unit number, model year, cost-effective useful life, age, fuel type, 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 # Year Cost- Effective Useful Life Age Fuel Type Replacement FY Original Cost Total Maintenance Cost % 15283 1997 12 21 CNG FY08/09 $20,305 $49,243 243% 15448 1999 12 19 CNG FY10/11 $22,265 $26,861 121% 15477 1999 12 19 UL* FY10/11 $22,215 $26,363 119% 15634 2001 12 17 CNG FY12/13 $22,215 $50,309 226% 15648 2001 12 17 UL* FY12/13 $59,130 $63,828 108% 15766 2002 12 16 CNG FY13/14 $23,203 $37,347 161% *UL = Unleaded Gasoline Vendor Selection Bid Data Bid Posting Date Bid Posted On Bid Advertised In (City Charter & Municipal Code) # of Vendors Downloaded # of Submittals Received Date Publicly Opened 04/06/2018 City's Online Bidding Site Santa Monica Daily Press 19 2 04/20/ 2018 Submittals Received Vendor Selection Recommendation Reynolds $321,145 Municipal Code SMMC 2.24.072 3 of 3 Buick, Inc. Wondries Fleet Group $351,508 Evaluation Criteria Price, previous experience, ability to deliver, quality of product, and compliance with City specifications. Best and Lowest Bidder Reynolds Buick, Inc. Best Bidder Justification Reynolds Buick, Inc. is the lowest bidder, offered CNG passenger vans that meet City specifications, offered the option of purchasing three additional vehicles within a 12- month period, and offered a 2% discount if payment is made within 30 days. Financial Impacts and Budget Actions Staff seeks authority to award a purchase order with Reynold’s Buick, Inc. to furnish and deliver six CNG-powered passenger vans, with the option to purchase an additional three vans within 12 months of the bid award. Purchase Order Request Request Amount FY 2018-19 Budget CIP Account # Total Purchase Order Amount $321,145 C7000010.689000 $481,718 Future year funding is contingent on Council budget approval. Prepared By: Ryan Kraemer, Senior Administrative Analyst Approved Forwarded to Council Attachments: A. Reynolds Buick, Inc Oaks Form