Loading...
HomeMy WebLinkAboutE-9 Staff Report - Preventive Mobile Blanket Increase 2019 CONSENT ITEM E-9 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL VIA: SERGIO GONZALEZ, CITY MANAGER FROM: DANIEL BOBADILLA, P.E., DIRECTOR OF PUBLIC WORKS/CITY ENGINEER DATE: MAY 6, 2019 SUBJECT: AUTHORIZATION TO INCREASE THE BLANKET PURCHASE ORDER FOR PREVENTIVE MOBILE BACKGROUND: In December of 2015, City Council approved the award of the fleet maintenance services contract to Preventive Mobile. This was based on an open, competitive bid and included a base routine maintenance contract amount as well as an amount for repairs as needed. The total amount for the blanket purchase order to cover both the routine maintenance and as needed repairs was set at $104,200. Due to some major repairs to vehicles this fiscal year, we have reached the maximum amount of the blanket purchase order and are requesting an increase to cover services through the remainder of the fiscal year. RECOMMENDATION: Staff recommends the City Council take the following action: 1) Approve an increase to the blanket purchase order for Preventive Mobile from $104,200 to $150,000. ANALYSIS: Through an open, competitive bidding process in December of 2015, Preventive Mobile was awarded the contract for fleet maintenance services. Recently, we utilized one of the one-year extensions available for that contract. The blanket purchase order amount was set based on average annual expenditures to cover both the scheduled maintenance and repairs as they were needed. This fiscal year, we utilized the blanket purchase order to make some major vehicle repairs and therefore we have reached the blanket purchase order limit. Some of the major vehicle repairs included nearly $60,000 on the transit buses and $11,000 to rebuild an engine on the Public Works sign truck. With a couple months still left in the fiscal year and a number of expenditures still anticipated, we are requesting an increase to the blanket purchase order from $104,200 to $150,000. Authorization to Increase Preventive Mobile Purchase Order May 6, 2019 Page 2 FISCAL IMPACT: Increasing the blanket purchase order has no fiscal impact. Vehicle repairs will be funded through the vehicle’s respective department annual operating budget. Prepared by: Reviewed and Approved: Nikki Rosales Daniel Bobadilla, P.E. Senior Management Analyst Director of Public Works/City Engineer Reviewed and Approved: Sergio Gonzalez City Manager