REPORT

To the Honorable Mayor and City Council

From the City Manager

January 13, 2014

SUBJECT
Purchase of three (3) 2014 Harley-Davidson Motorcycles
RECOMMENDATION
Approve by motion, the purchase of three (3) 2014 Harley-Davidson motorcycles in the
amount of $77,092.92 from Oakland Harley-Davidson of Oakland, CA under the
cooperative purchasing provision of the State of California contract number 1-13-23-30
(contract term 2/6/13 2/5/15) bid through a competitive process by the State of
California in November 2012.
BACKGROUND
Redwood Citys Fleet Replacement Program is designed to provide a structure for
evaluating vehicles and equipment in order to replace them at the most economically
advantageous point in their life cycle. At pre-set intervals vehicles and equipment
undergo a thorough evaluation including but not limited to, age, mileage, condition,
maintenance history, downtime, anticipated future repairs, usage and vehicle
capabilities.
ANALYSIS
The Redwood City Police Department has three motorcycles used in the Patrol Division
that are scheduled for replacement in the current Fiscal Year. Representatives from the
Police Department and the Public Works Fleet Section have agreed that the three
motorcycles should be replaced with 2014 Harley-Davidson motorcycles as they will
meet the rigorous demands of the Police Departments Patrol assignments.
When buying equipment, the City follows certain purchasing provisions provided
in Article VII of Chapter 2 of the Redwood City Municipal Code (Purchasing
Ordinance). Like most purchasing ordinances, the Purchasing Ordinance provides for
competitive bidding so that the City may get the best possible benefit of the process.
However, the Purchasing Ordinance recognizes that in certain situations alternative
procedures may be utilized.
Under Section 2.80, an alternative procedure may be utilized when it is more
likely to obtain maximum quality, service or performance at a minimum price.
(RCMC 2.80 "Open Market Procedures.") One of the City's recognized alternative
procedures is leveraged pricing that is obtained through the buying power of

another agency and extending that organization's contract to benefit the City's
proposed purchase in order to get the best quality and price. This is sometimes referred
to as "piggybacking" and state law, although not controlling here, also allows for
this procedure under certain circumstances. Further, alternative procedures may be
acceptable even when there is no specific provision for alternatives to
competitive bidding when competitive proposals would be unavailing or would not
produce an advantage, and thwart the underlying purpose of having a competitive
bid procedure. (See Graydon v Pasadena Redevelopment Agency (1980) 104
Cai.App.3d 631.)
Section 2.80 of the Purchasing Ordinance allows the "piggyback" procedure to be used
for the purchase of materials, equipment, supplies, or professional services without
competitive bidding under the following circumstances:

Purchases from vendors whose names are on current established lists

and have been awarded the same type of purchase contract by a state
agency, county, city or other public agency after competitive bidding
processes substantially equivalent to that prescribed by the City Charter
or the Purchasing Ordinance; and
Such purchases conform to the specifications thereof of the City; and
The estimated price of any such purchase equal to or lower than
that estimated for such purchase if made directly by the City pursuant to
the competitive bidding requirements of the Purchasing Ordinance.

The Open Market Purchase provisions allowing for piggybacking is somewhat

ambiguous but the City Attorney has opined that it also applies to purchases over
$60,000 because as the regular procedure for purchases under $60,000 is itself
an alternative to a formal competitive bid process, with three written quotations
and City Manager approval. [RWCMC 2.65] However, if the City Council does not
agree with this interpretation, it should not approve the process to purchase the
motorcycles.
Staff indicates that the necessary f indin gs under Section 2.80 may be made for
the following reasons.
First, staff proposes to piggyback on the competitive bidding requirements of
another public agency - the State of California General Services Administration,
Department of Procurements CMAS competitive bidding process.
Public Works
Division staff has reviewed the CMAS competitive bidding process, completed in
November 2012, and confirm that the States c o m p e t i t i v e bidding requirements
are equivalent to that prescribed by the City Charter or the Purchasing Ordinance of
the City.
Second, such purchase conforms to the specifications thereof of the City because
both Redwood City and the State have a policy that all contracts or purchases in

excess of ten thousand dollars ($10,000) shall be awarded to the lowest

responsible bidder after due notice is given by publication. Both agencies require
sealed bids for purchases over $10,000.
Third, the estimated price of this purchase is equal to or lower than that estimated
for such purchase if made directly by the City pursuant to the competitive
bidding requirements of the Purchasing Ordinance.
ALTERNATIVES
Do not approve the purchase of the three (3) 2014 Harley-Davidson motorcycles. The
operational requirements of the Police Department would be adversely impacted due to
conditions of the existing motorcycles.
Conducting a separate competitive bid process would likely not result in any cost
savings since the State of Californias bid process included all of the same criteria and
requirements that a Redwood City competitive bid requires.
FISCAL IMPACT
Funds for the purchase of the three (3) 2014 Harley-Davidson motorcycles is available
in the FY 2013-14 Equipment Replacement Fund Budget in the amount of $77,092.92.
This amount will be subsequently recovered from the operating budget of the user
department through vehicle replacement charges in future years.
ENVIRONMENTAL
This activity is not a project under CEQA as defined in CEQA Guidelines, section

15378, because it has no potential for resulting in either a direct or foreseeable physical
change in the environment.

RUSSELL NARAHARA
ACTING FLEET MANAGER

BILL EKERN
COMMUNITY DEVELOPMENT DIRECTOR

ROBERT B. BELL
CITY MANAGER

ATTACHMENTS
1. State of California Bid Specification (1-13-23-30)
2. State of California Contract User Instructions (1-13-23-30)