BOARD MEETING DATE: March 5, 2010
AGENDA NO. 4

PROPOSAL:

Issue Purchase Order for CNG Passenger Vehicles for AQMD Fleet

SYNOPSIS:

On May 1, 2009, the Board approved release of a Request for Quotes (RFQ) to competitively select a vendor from which to purchase five dedicated-CNG compact cars. This action is to purchase an additional 15 vehicles, using the same RFQ process, to replace high-mileage, high- maintenance-cost vehicles in AQMD’s fleet. The cost of this purchase would not exceed $400,000, and funds are available in the FY 2009-10 Budget.

COMMITTEE:

Administrative, February 12, 2010, Recommended for Approval

RECOMMENDED ACTION:

Authorize the Procurement Manager to execute a purchase order with DCH Gardena Honda for an amount not to exceed $400,000 for the purchase of 15 dedicated-CNG Honda Civic GX sedans. 
 

Barry R. Wallerstein, D.Env.
Executive Officer

Background

To reduce the number of high-mileage, high-maintenance-cost vehicles in AQMD's fleet and to promote the use of dedicated-CNG vehicles, staff recommends purchasing 15 dedicated-CNG vehicles. AQMD staff budgets annually for the replacement of high-mileage vehicles that are no longer cost effective to maintain and repair. Due to budget constraints, last fiscal year the agency purchased only five sedans. The fleet currently has 51 sedans in field use that have over 100,000 miles.

Proposal

In May 2009, staff released RFQ 2009-07 to competitively select a vendor from which to purchase new dedicated-CNG passenger vehicles. Based on the bids received, DCH Gardena Honda, lowest bidder, was selected. DCH Gardena Honda has extended its proposal, at the same price, terms and conditions, except for the increase in sales tax, which is now 9.75%, for 2010 dedicated-CNG Honda Civic GX sedans. Therefore, staff recommends that the Board authorize the Procurement Manager to execute a purchase order with DCH Gardena Honda for an amount not to exceed $400,000 for the purchase of 15 dedicated-CNG Honda Civic GX sedans.

Resource Impacts

Sufficient funds, not to exceed $400,000, for the purchase of 15 vehicles for the AQMD fleet have been included in the FY 2009-10 Budget.