TITLE
Recommendation to adopt Specifications No. ITB FS21-093 and award a contract to Enterprise Rent A Car Company of Los Angeles, LLC, of Orange, CA, for the purchase of used cars, in a total annual amount not to exceed $500,000, for a period of two years, with the option to renew for three additional one-year periods, at the discretion of the City Manager; and, authorize City Manager, or designee, to execute all documents necessary to enter into the contract including any necessary amendments. (Citywide)
DISCUSSION
City Council approval is requested to enter into a contract with Enterprise Rent A Car Company of Los Angeles, LLC (Enterprise Rent A Car) to purchase an average of 20 used cars per year, at an average cost of $25,000 each, for the Long Beach Police Department. All vehicles purchased under this contract will be through the Long Beach rental sales branch.
The bid was advertised in the Long Beach Press-Telegram on September 8, 2021, and 66 potential bidders specializing in new and used vehicles were notified of the bid opportunity. Of those bidders, 10 downloaded the bid via the City’s electronic bid system. The bid document was made available from the Purchasing Division, located on the sixth floor of City Hall, and the Division’s website at www.longbeach.gov/purchasing <http://www.longbeach.gov/purchasing>. A bid announcement was also included in the Purchasing Division’s weekly update of Open Bid Opportunities, which is sent to 39 local, minority-owned, and women-owned business groups. One bid was received on September 28, 2021. The bidder was not a Minority-owned Business Enterprise (MBE), Women-owned Business Enterprise (WBE), certified Small Business Enterprise (SBE), or a Long Beach vendor (Local). Enterprise Rent A Car (not an MBE, WBE, SBE, or Local), was the sole responsible bidder. Even though Enterprise Rent A Car is registered in Orange, CA, the Long Beach location will be utilized for the City’s transactions.
Local Business Outreach
To align with the City’s outreach goal, Long Beach businesses are encouraged to submit bids for City contracts. The Purchasing Division also assists businesses with registering on the PlanetBids database to download bid specifications. Through outreach, 8 Long Beach vendors were notified to submit bids, of which 2 downloaded and none submitted a bid. Even though Enterprise Rent A Car is registered in Orange, CA, the Long Beach location will be utilized for the City’s transactions.
The Purchasing Division is committed to continuing to perform outreach to local vendors to expand the bidder pool.
This matter was reviewed by Deputy City Attorney Taylor M. Anderson on November 8, 2021, Business Services Bureau Manager Tara Mortensen on November 4, 2021, and by Revenue Management Officer Geraldine Alejo on November 10, 2021.
SUSTAINABILITY
All purchased vehicles must comply with the State of California, local, and federal regulations for particulate and gaseous emissions. When possible, hybrid or all-electric vehicles will be purchased that exceed current emissions standards.
TIMING CONSIDERATIONS
City Council action to adopt Specifications No. ITB FS21-093 and award a contract concurrently is requested on December 7, 2021, to ensure the contract is in place expeditiously.
FISCAL IMPACT
The total annual contract amount will not exceed $500,000, including taxes and fees. This is budgeted in the Fleet Fund Group in the Financial Management Department. Funds for replacement vehicles and annual maintenance costs are charged to the General Fund Group in the Police Department through the regular Fleet Services Memorandum of Understanding (MOU) monthly billing process starting when the vehicle is delivered and in use. This recommendation has no staffing impact beyond the normal budgeted scope of duties and is consistent with City Council priorities. The award of this contract will provide continued support to our local economy by assisting in the preservation of employment for 114 full-time employees residing in Long Beach.
SUGGESTED ACTION
Approve recommendation.
BODY
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Respectfully Submitted,
KEVIN RIPER
DIRECTOR OF FINANCIAL MANAGEMENT
APPROVED:
THOMAS B. MODICA
CITY MANAGER