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