HomeMy WebLinkAbout1998-07-14 - AGENDA REPORTS - PURCHASE OF TWO COMPRESSED NAT (2)CITY OF SANTA CLARITA
AGENDA REPORT
City Manager Approval: /::�
Item to be presented by: Kevin Tonoian
CONSENT CALENDAR
DATE: July 14, 1998
SUBJECT: AWARD CONTRACT FOR THE PURCHASE OF TWO COMPRESSED
NATURAL GAS TRUCKS
DEPARTMENT: Planning and Building Services
RECOMMENDED ACTION
City Council: 1) appropriate $80,000 in PVEA grant funds for the acquisition of Alternative
Fueled Vehicles to account number 2411-8615, appropriate $20,000 in PVEA grant funds for the
purchase and installation of related fueling infrastructure to account number 2411-8601, and
increase estimated revenues, account number 453-5157 in the amount of $100,000 for the PVEA
grant; 2) reject all bids received as a result of City of Santa Clarita Bid # PS 97-98-28; and 3)
direct staff to re -bid the purchase of two Compressed Natural Gas vehicles.
BACKGROUND
In September of 1997, Santa Clarita received notification from the offices of California State
Senator Pete Knight, and California Assembly Member George Runner that the City had been
awarded a Petroleum Violation Escrow Account (PVEA) Grant in the amount of $100,000.
Pursuant to the requirements of this grant, PVEA funding will be utilized for the acquisition of
alternative fueled vehicles and related infrastructure.
As part of the recently completed Fiscal Year 1998/99 Budget process, three new vehicles were
allocated and designated to be funded though the PVEA Grant Program. This program is
administered through the California Energy Commission, and will reimburse the City up to
$100,000 for expenses relating to the acquisition of alternative fueled vehicles and related
infrastructure. At this time staff is requesting that City Council appropriate $100,000 to
provide up front funding for these vehicles and equipment, as all City costs will be reimbursed
through this grant.
On June 24, 1998 a notice inviting bids was sent to Bidnet, the Chamber of Commerce, the
Valencia Industrial Association, and Network Advantage. Additionally, bid packages were sent
to 14 specific Ford Dealerships that are authorized to retail CNG type vehicles. It is important
to note that Magic Ford did not request or receive a bid package, as this particular dealer is not
authorized by the Ford Motor Company to retail CNG vehicle products.
Acrenda Item: 4:;L
PURCHASE OF TWO CNG TRUCKS
July 14, 1998
Page 2
Following the initial release of Bid It PS -97-98-28, two Addendum's to Bid # PS -97-98-28 were
distributed to all potential bidders. In these addenda the City requested that, in addition to the
providing the cost associated with purchasing these vehicles, all potential bidders provide the
City with information that outlined the cost of leasing such vehicles.
On July 8, 1998, the sealed bids were opened and read by the City Clerk, and the results of the
bids with selected options included are shown below:
1. Purchase of two CNG Vehicles:
Vendor
Bob Beaty Ford
Wonderies Fleet Group
2. Lease of two CNG Vehicles:
Vendor
Wonderies Fleet Group
Bob Beaty Ford
Location Bid
Simi Valley, CA $45,714.00
Alhambra, CA $53,083.20
Location Bid
Alhambra, CA $30,442.32
Simi Valley, CA. $0.00
In reviewing each bid package, both Wonderies Fleet Group and Bob Beaty Ford provided the
City with a bid for the purchase of two CNG Powered, Single Fuel Full Sized Pick-up Trucks.
In reviewing these bids, the lowest apparent bidder was Bob Beaty Ford with a bid of
$45,714.00 for purchase these specific vehicles. Wonderies Fleet Group was the second lowest
bidder, with a bid of $53,083 for the purchase of these two specific vehicles.
In reviewing both bids, staff was required to declare the bid received by Bob Beaty Ford as
"unresponsive" as the bidder was unable to provide these vehicles to the City by the specified
date of September 11, 1998.
As referenced above, all bidders were requested to provide the City with information that
outlined the cost of leasing these vehicles for a three-year period. In reviewing the two bid
packages received by the City, Wonderies Fleet Group was the only bidder to respond with a
total price of $30,442.32 for the lease of these two vehicles. However, following the formal
opening of this bid, Wonderies Fleet Group contacted City staff and verbally requested to
withdraw the lease option portion of their bid.
ALTERNATIVE ACTIONS
1. Accept the Wonderies Fleet Group bid of $53,083.20 for the purchase of two CNG Powered,
Single Fueled Pick-up Truck.
2. Other direction as determined by the City Council.
PURCHASE OF TWO CNG TRUCKS
July 14, 1998
Page 3
FISCAL IMPACT
As a result of the combined efforts of California State Senator Pete Knight, and California Assembly
Member George Runner, funding for this expenditure are available through the PVEA Grant received
by the City. Costs incurred to acquire vehicles and related fueling infrastructure will be paid up front
and funded through the $100,000 PVEA Grant received by the City. Once these vehicles and related
fueling infrastructure have been acquired, the City will receive 100% reimbursement through the
PVEA Grant Program.
KMT:lep
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