SR 07-24-2018 3G
City Council
Report
City Council Meeting: July 24, 2018
Agenda Item: 3.G
1 of 3
To: Mayor and City Council
From: Susan Cline, Director, Public Works, Street & Fleet Services
Subject: Purchase of Three Compressed Natural Gas Stake-Bed Trucks
Recommended Action
Staff recommends that the City Council:
1. Award Bid #4300 to Reynolds Buick, Inc., a California-based company, for the
purchase of one Compressed Natural Gas (CNG) stake-bed truck with the option
to purchase up to two additional stake-bed trucks 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 of three CNG stake-bed trucks in the
amount not to exceed $267,135. The City is utilizing the option to purchase an
additional two vehicles at this time.
Summary
This purchase would replace three stake-bed trucks used by the Water Resources
Division, which is 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 businesses, and one vehicle used by the Public Landscape
Division, which is responsible for maintaining and improving the City’s parks and
landscapes including tennis and basketball courts, athletic fields, and park amenities.
Staff recommends Reynolds Buick, Inc. to furnish and deliver three CNG-powered
stake-bed trucks in an amount not to exceed $267,135.
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 t he Vehicle Replacement
Program. This purchase would replace two stake-bed trucks used by the Water
Resources Division and one stake-bed truck used by the Public Landscape Division.
The vehicles recommended for replacement were purchased between 1997 and 2001,
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and are between 17 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
%
15227 1997 12 21 UL* FY08/09 $27,812 $26,684 96%
15631 2001 12 17 CNG FY12/13 $51,300 $42,618 83%
15725 2001 12 17 CNG FY12/13 $58,238 $39,173 67%
*UL = Unleaded Gasoline
Bid #4300 called for the purchase of one CNG-powered stake-bed truck, with the option
to purchase an additional two vehicles within 12 months, which Reynolds Buick, Inc.
offered. Additional purchasing language 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. Two additional stake-bed
trucks have been identified by Fleet staff and approved for replacement by the Director
of Public Works, so the City is exercising the additional purchase option listed in the bid.
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
01/29/2018 City's Online
Bidding Site
Santa Monica Daily
Press
19 2 02/15/2018
3 of 3
Submittals Received Vendor Selection Recommendation
Reynolds
Buick,
Inc.
$89,045 Municipal Code SMMC 2.24.072
Greenkraft
, Inc.
$96,366 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 stake-bed trucks that meet City
specifications, and offered the option of purchasing two additional vehicles within a 12-month
period.
Financial Impacts and Budget Actions
Staff seeks authority to award a purchase order with Reynold’s Buick, Inc. to furnish and
deliver three CNG-powered stake-bed trucks.
Purchase Order Request
Request Amount FY 2018-19 Budget
CIP Account #
Total Purchase Order Amount
$267,135 C7000010.689000 $267,135
Prepared By: Ryan Kraemer, Senior Administrative Analyst
Approved
Forwarded to Council
Attachments:
A. Reynolds Buick, Inc Oaks Form