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HomeMy WebLinkAbout17-Public Services -. .- CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION OR\G\NAL Subject: A resolution authorizing an increase to an annual purchase order, with two (2) single year renewal options, to Tec of California for the purchase of specific equipment parts and supplies for the Public Services Refuse fleet utilized by the Public Services Department Fleet Division. From: Lynn Merrill, Director Dept: Public Services Date: February 9, 2004 Meeting Date: March 1, 2004 Reso 2003-50 Feb.18,2003 Increase PO to $34,500 Recommended Motion: Adopt resolution /J a~ /? / 4- ~~" Af4r:/1 ~~gna~ Contact person Lynn Merrill, Director Phone: 5140 Supporting data attached: Ward: All FUNDING REQUIREMENTS: Source: $33,000 635-341-5111 Materials and Supplies Amount: Finance: ~~~f/Jv-- Council Notes: \4,--SO -\:I.-Z00 4-e,.,Lt 3/ J /b'l Agenda Item No. /7 .' CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION Staff Report Subject: A resolution authorizing an increase to an annual purchase order, with two (2) single year renewal options, to Tec of California for the purchase of specific equipment parts and supplies for the Public Services Refuse fleet utilized by the Public Services Department Fleet Division. Background: During the FY2001/2002 an Annual Purchase Order was issued to RDO Truck Center of Riverside in the amount of $24,500; and in 2002 the company name was changed to Tec of California. Tec of California, is the local authorized Volvo White/GMC dealership that furnishes specific equipment parts and supplies for the Refuse fleet; therefore, is considered a sole source supplier. An assessment by staff found no local vendors authorized to supply Volvo White/GMC parts and supplies. On February 18, 2003 the first increase to this annual purchase order was approved by the Mayor and Council with Resolution 2003-50 in the amount of $10,000 for a total amount of $34,500. The Fleet Division projects that an additional $33,000 is needed to cover costs for the remainder of the Fiscal Year 2003/2004, due to specific Volvo parts and supplies that are no longer under warranty. The Fleet Division has experienced abnormal failures of a specific component of the rear suspension on the City's Refuse fleet. Sixty-nine (69) of these components called a T-Ride Load Cushion, have been replaced at a cost of $19,477.44 this fiscal year, which represents a third ofthe Refuse fleet. Therefore, an increase of $33,000 to the annual Purchase Order is requested, for a total amount not to exceed $67,500. Fleet staff has also contacted other Municipalities and negotiated a group discount price with Tec of California from $305.00 each, to $216.24 each, for all additional components purchased. Staff has also contacted Volvo Corporate and filed a product complaint (ref. # 177854) concerning this matter. Financial Impact: Funds for this increase are contained in the Public Services, Fleet Division budget, FY 2003/2004, Account No. 635-341-5111, Materials and Supplies in the amount of $91,670. Recommendation: Adopt resolution . e e e 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 RG~~'Y{ A RESOLUTION AUTHORIZING AN INCREASE TO AN ANNUAL PURCHASE ORDER, WITH TWO (2) SINGLE YEAR RENEWAL OPTIONS, TO TEC OF CALIFORNIA FOR THE PURCHASE OF SPECIFIC EQUIPMENT PARTS AND SUPPLIES FOR THE PUBLIC SERVICES REFUSE FLEET UTILIZED BY THE PUBLIC SERVICES DEPARTMENT FLEET DIVISION. BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: SECTION 1. That Tee of California is a sole source provider of specific equipment parts and supplies for the Refuse Division fleet; pursuant to this determination the Purchasing Manager is hereby authorized to issue an increase of $33,000 to the annual purchase order to Tee of California in an amount not to exceed $67,500 for FY2003/2004, with two (2) single year r~newal options. SECTION 2. The Purchase Order shall reference this Resolution No. 2004- and shall read, "Tec of California, Specific equipment parts and supplies for Refuse Division fleet, increase PO, not to exceed $67,500". SECTION 3. The authorization to execute the above referenced increase to purchase order is rescinded if not issued within sixty (60) days of the passage of this 18 19 20 11/ 21 resolution. III 22 11/ 23 III 24 25 26 III 11/ 27 28 III February 26. 2004 !Lo. /1 -3/ (/ ~ fI' ~ e e e 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 A RESOLUTION AUTHORIZING AN INCREASE TO AN ANNUAL PURCHASE ORDER, WITH TWO (2) SINGLE YEAR RENEWAL OPTIONS, TO TEC OF CALIFORNIA FOR THE PURCHASE OF SPECIFIC EQUIPMENT PARTS AND SUPPLIES FOR THE PUBLIC SERVICES REFUSE FLEET UTILIZED BY THE PUBLIC SERVICES DEPARTMENT FLEET DIVISION. I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor and Common Council of the City of San Bernardino at a meeting thereof, held on the day of , 2004, by the following vote, to wit: NAYS ABSTAIN ABSENT Council Members: AYES ESTRADA LONGVILLE MCGINNIS DERRY KELLEY 16 JOHNSON 17 MCCAMMACK 18 19 Rachel G. Clark, City Clerk 20 The foregoing resolution is hereby approved this ,2004. day of 21 22 Judith Valles, Mayor City of San Bernardino 23 24 25 JAMES F. P 26 City AttOj1e 27 / By: 28 Approved as to Form and legal content: February 26, 2004