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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
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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:
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Council Notes:
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Agenda Item No. /7
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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
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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
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February 26. 2004
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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
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22
Judith Valles, Mayor
City of San Bernardino
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25 JAMES F. P
26 City AttOj1e
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By:
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Approved as to
Form and legal content:
February 26, 2004