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'. . 'CI1"'Y .OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION
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Date: December 13,1999
Subject: Resolution authorizing the execution of annual
purchase orders to McCray Enterprises, P&S Truck
Supply, Inc., Rush Truck Centers of California, and
Dieterich International for state mandated preventive
maintenance inspections and repair of the Gty's heavy
truck fleet.
From: Lynn Merrill, Director
Dept: Public Services
ORIGINAL
Council Meeting Date: December 20, 1999
Synopsis of Previous Council Action
None
Recommended Motion:
That the Mayor and Common Council:
1. Authorize the Director of Finance to amend the FY 1999-00 Budget and appropriate $135,000 from the Fleet
Fund's unappropriated/undesignated fund balance for outside vehicle maintenance (635-341-5173).
2.
Adopt Resolution.
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Contact person:
Lynn Merrill
Phone:
5140
Supporting data attached: Staff Report, Resolution
Ward:
FUNDING REQUIREMENTS:
Amount:
Source:
$135,000
UnappropriatedJUndesignated
Fleet Fund balance
_~0r/U
" Finance
Council Notes:
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Agenda Item No.D.-
STAFF REPORT
SUBJECT
Resolution authorizing the execution of annual purchase orders to McCray Enterprises, P&S Truck
Supply, Inc., Rush Truck Centers of California, and Dieterich International for state mandated
preventive maintenance inspections and repair of the City's heavy truck fleet; and a motion authorizing
the Director of Finance to amend the FY1999/2oo0 Fleet Division Budget to appropriate $135,000
from the available Fleet fund balance to cover the cost of PMI vehicle repairs.
BACKGROUND
On June 23, 1999, the California Highway Patrol conducted their Biennial Terminal Inspection of the
Fleet Division. Due to numerous identified deficiencies in the area of "Maintenance Program!
Records" and "Vehicles", the Fleet Division received an "U nsatisfactOlY" rating. This is the first time
that this has occurred since 1995. In order to receive a satisfactory rating, the Fleet Division must
make significant efforts to correct the identified deficiencies. The Public Services Department is
undertaking corrective actions in a timely manner. One area that was noted as deficient is the 90-day
Preventive Maintenance Inspections (pMIs).
A State mandated Preventive Maintenance Inspection (PMI) requires each vehicle equipped with
airbrakes and over 26,000 pounds Gross Vehicle Weight, or any combination of a vehicle with a total
length of 40 feet or over, to be inspected every ninety (90) days for safety. This regulation applies to
ninety-six (96) of our vehicles and trailers. Sixty-two (62) of the ninety-six vehicles are in support of the
Refuse Operation.
At the time of the CHP inspection 58 of the 96 vehicles subject to 90-day PMIs were overdue. As of
November 30, 1999, the number of overdue vehicles has been reduced to 27. However, vehicles that
were previously inspected are now coming due for their next 90-day inspections. During the remainder
of this calendar year 36 vehicles will come due for inspections, while an additional 13 will come due in
January 2000. Because of the Fleet Division's emphasis on repairing and returning to service those
vehicles that break down on a daily basis, it is anticipated that the Fleet Division will not be able to
perform these inspections and! or repairs solely in-house until after February 29, 2000. Accordingly,
staff is requesting approval to outsource the backlog of inspections.
Staff identified four (4) vendors and secured pricing to complete the required inspections and resulting
repairs. (Once a PMI is performed, any resulting repairs must be made by the same vendor for liability
reasons.) As of November 18th, a total of $32,933.42 had been expended on outsourced PMI's
($14,012.84 to McCray, $14,494.29 to P&S Truck, $973.96 to Associated Truck Parts, and $3,452.33 to
Rush Truck Centers).
Because it is now expected that more than $25,000 per vendor will be expended, and pursuant to
section 3.04.010 B 3 of the MunitipaJ Oxle entitled "Exemptims," staff is requesting Council approval to
issue annual purchase orders without going through the formal bid process to the following (4) four
vendors in an aggregate amount not to exceed $135,000: McCray Enterprises, P&S Truck Center, Rush
Truck Centers, and Dieterich International. The vendors listed above will be utilized based on
availability since the immediate turn-around of the PMI's is critical.
Of the four vendors, McCray Enterprises and P & S Truck Center are the only two vendors that have
been able to accomplish the inspections and repairs in an expedient time frame, significantly impacting
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the Refuse Division's daily readiness. Additionally, both vendors pick-up and deliver vehicles, thereby
freeing staff to perform other required maintenance as opposed to ferrying vehicles between the Fleet
Service Center and the vendor. The other vendors shall be used to provide additional PMI support as
necessary, based on vendor availability and other factors as determined by the Fleet Manager. It may
be necessary to utilize other vendors if the (4) four above cannot fulfill the City's requests in a timely
manner, but the aggregate total will not exceed $135,000.
Once the Fleet Division is caught up on the backlog of PMI's, additional delays are not anticipated.
The increasing age and wear of the Refuse Division's collection trucks are primarily responsible for this
situation. The Refuse Division accepted delivery of three new commercial front loaders in May 1999,
and is preparing to purchase (3) three additional commercial front loaders with an anticipated delivery
date of May 2000. Staff is also preparing vehicle replacement specifications for (6) six residential
automated collection trucks with an anticipated delivery date of July 2000.
Staff is exploring the possibility of establishing a rehabilitation program on the residential equipment in
order to improve each vehicle's service life. Staff is also looking at various scheduling and staffing
options in order to improve the Fleet Division's ability to maintain the PMI schedule as required.
FINANCIAL IMPACT
The Fleet Division projects that $135,000 is needed to cover inspection and repair costs on the heavy
equipment fleet through February 2000 in order to bring the operation into compliance with the
mandated inspection program. Funds are available in the Fleet Fund's unappropriated/undesignated
fund balance from an accumulation of charges from previous years.
RECOMMENDATION
That the Mayor and Common Council:
1. Authorize the Director of Finance to amend the FY 1999-00 Budget and appropriate $135,000
from the Fleet Fund's unappropriated/undesignated fund balance for outside vehicle
maintenance (635-341-5173).
2. Adopt Resolution authorizing the Purchasing Manager to issue annual purchase orders in an
aggregate amount "not to exceed" $135,000 to McCray Enterprises, P&S Truck Supply, Inc.,
Rush Truck Centers of California, and Dieterich International for state mandated preventive
maintenance inspections and repair of the City's heavy truck fleet.
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CITY OF SAN_BERNARDINO - REQUEST FOR COUNCIL ACTION
STAFF REPORT
SUBJECT
Resolution authorizing the Finance Director to amend the FY1999/2000 Fleet Division Budget to
appropriate $135,000 from the available fund balance to cover the cost of PMI vehicle repairs; and to
authorize the execution of annual purchase orders to McCray Enterprises, P&S Truck Supply, Inc.,
Rush Truck Centers of California, and Dieterich International for state mandated preventive
maintenance inspections and repair of the City's heavy truck fleet.
BACKGROUND
A State mandated Preventive Maintenance Inspection (PM!) requires each vehicle equipped with
airbrakes and over 26,000 pounds Gross V ehicle Weight, or any combination of a vehicle with a total
length of 40 feet or over, to be inspected evety ninety (90) days for safety. This regulation applies to
ninety-six (96) of our vehicles and trailers. Sixty-two (62) of the ninety-~ix vehicles are in support of the
Refuse Operation.
On June 23, 1999, the California Highway Patrol conducted their Biennial Tertninallnspection of the
Fleet Division. Due to numerous identified deficiencies in the area of "Maintenance Program!
Records" and "Vehicles", the Fleet Division received an "U nsatisfactoty" rating. This is the first time
that this has occurred since 1995. In order to receive a satisfactoty rating, the Fleet Division must
make significant efforts to correct the identified deficiencies. The Public Services Department is
undertaking corrective actions in a timely manner. One area which was noted as deficient is the 90-day
Preventive Maintenance Inspections (pMIs).
At the time of the Q-lP inspection 58 of the 96 vehicles subject to 90-day PMIs were overdue. As of
November 30, 1999, the number of overdue vehicles has been reduced to 27, with two over 90-days
overdue, eight over 60-days overdue and four over 30-days and 13 within 30-days overdue. However,
vehicles that were previously inspected are now coming due for their next 90-day inspections. During
the remainder of this calendar year, 36 vehicles will come due for inspections, while an additional
thirteen will come due in January 2000. Because the Fleet Division's emphasis on repairing and
returning to service those vehicles which break down on a daily basis, it is anticipated that the Fleet
Division will not be able to perform these inspections and/or repairs solely in-house until after
February 29, 2000.
The increasing age and wear of the Refuse Division's collection trucks are primarily responsible for this
situation. The Refuse Division accepted delivery of three new commercial front loaders in May 1999,
and recently ordered three additional commercial front loaders which are scheduled for May 2000
delivery. Staff is preparing vehicle replacement specifications for the residential automated collection
trucks and is anticipating going out to bid as soon as practical, with a delivery of July 2000 for six
additional vehicles. Staff is also exploring the possibility of establishing a rehabilitation program on the
residential equipment in order to improve each vehicle's service life. Staff is also looking at various
scheduling and staffing options in order to improve the Fleet Division's ability to maintain the PMI
schedule as required.
Staff identified four (4) local vendors to perform the required PMI using the City's forms, and secured
pricing for this service. However, once the PMI is performed, the repairs must be made by the same
vendor for liability reasons. As of December 2, 49 vehicles were outsourced to these vendors for these
inspections and repairs.
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Because of the continuing need for the Preventive Maintenance Inspections and repair of those
deficiencies identified during the inspections, the Department is requesting issuance of annual purchase
orders to the following vendors:
Vendor Description Original Requested Total
Amount loa-ease Amount
0 $50,000 $50,000
0 $50,000 $50,000
0 $15,000 $15,000
0 $20,000 $20,000
Of the four vendors, Mc Cray Enterprises and P & S Truck Center are the only two vendors that have
been able to accomplish the inspections and repairs in an expedient time frame that does significantly
impact the Refuse Division's daily readiness. Additionally, both vendors' pick-up and deliver vehicles,
thereby freeing staff to perform other required maintenance as opposed to ferrying vehicles between
the Fleet Service Center and the vendor. The other vendors shall be used to provide additional PM!
support as necessary, based on vendor availability and other factors as determined by the Fleet
Manager.
FINANCIAL IMPACT
The Fleet Division projects that $135,000 is needed to cover inspection and repair costs on the heavy
equipment fleet through February 2000 in order to bring the operation into compliance with the
mandated inspection program. As an internal service department, the Fleet Division charges the actual
costs for inspection and repair of individual vehicles assigned to each departmem. Funds are in the
Fleet Division UnappropriatedlUndesignated fund balance. The revenue was derived from Garage
charges collected from Fleet user departments using a differem cost allocation system than is used now.
Staff is requesting Council to appropriate funds from the Fleet Division U nappropriated/
Undesignated fund. balance to cover the $135,000 cost of Outside Vehicle Repairs under the PM!
program.
The budget amendments requested are as follows:
FROM: TO:
ACCOUNT DESCRIPTION AMOUNT ACOOUNT DESCRIPTION AMOUNT
635-000- Unappropriated Fleet $135,000 635-341- Outside Vehicle $135,000
XXXX Fund Balance 5173 Maintenance
TOTAL $135,000 TOTAL $135,000
RECOMMENDATION
That the Mayor and Common Council:
1. Authorize the Director of Finance to amend the FY 1999-00 Budget as outlined above in the
staff report.
2. Adopt Resolution authorizing the Purchasing Manager to issue annual purchase orders in an
amount "notto exceed" $135,000 to McCray Enterprises, P&S Truck Supply, Inc., Rush Truck
Centers of California, and Dieterich International for state mandated preventive maintenance
inspections and repair of the City's heavy truck fleet.
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Resolution No.
RESOLUTION OF mE CITY OF SAN BERNARDINO AUTHORIZING mE
EXECUTION OF ANNUAL PURCHASE ORDERS TO Mc:CRAY ENTERPRISES,
P&S TRUCK SUPPLY, INC., RUSH TRUCK CENTERS OF CAUFORNIA, AND
DIETERICH INTERNATIONAL FOR STATE MANDATED PREVENTIVE
MAINTENANCE INSPECTIONS AND REPAIR OF mE CITY'S HEAVY TRUCK
FLEET UTILIZED BY mE PUBliC SERVICES DEPARTMENT
BE IT RESOLVED BY mE MAYOR AND COMMON COUNCIL OF mE
CITY OF SAN BERNARDINO AS FOLLOWS:
SECTION 1. That McCray Enterprises, P&S Truck Supply, Inc., Rush Truck Centers of
California, and Dieterich International provides heavy duty vehicle repair parts and service for
heavy equipment fleet to furnish State mandated preventive maintenance inspections and repairs
of the City's heavy truck fleet. Pursuant to this determination the Purchasing Manager is hereby
authorized and directed to issue Annual Purchase Orders to McCray Enterprises, P&S Truck
Supply, Inc., Rush Truck Centers of California, and Dieterich International in an aggregate amount
not to exceed $135,000.
SECTION 2. The authorization to execute the above referenced Annual Purchase
Orders is rescinded if the purchase orders are not issued within sixty (60) days of the passage of
this resolution.
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December 20" . 1999
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9 Council Members:
RESOLunON OF THE CITY OF SAN BERNARDINO AUlHORIZlNG 1HE
mcunoN OF ANNUAL PURCHASE ORDERS TO McCRAY ENTERPRISES,
P&S TRUCK SUPPLY, INC., RUSH TRUCK CENTERS OF CALIFORNIA, AND
DIETERICH INTERNATIONAL FOR STATE MANDATED PREVENTIVE
MAINTENANCE INSPECTIONS AND REPAIR. OF mE CITY'S HEAVY TRUCK
FLEET unLIZED BY lHE PUBLIC SERVICES DEPARTMENT
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
, 1999, by the following vote, to wit:
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N'\Vs
Abstain
Absent
ESTRADA
LIEN
McGINNIS
SCHNETZ
SUAREZ
ANDERSON
City Oerk
The foregoing resolution is hereby approved this
day of
,1999.
Approved as to form and
Legal content;
JatneS F. pPT1m~n, City Attomey
Judith Valles, Mayor
City of San Bernardino
BY:
December 20* , 1999
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