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HomeMy WebLinkAboutE-10 Staff Report - Enterprise Blanket PO Increase CONSENT ITEM E-10 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL VIA: SERGIO GONZALEZ, CITY MANAGER FROM: MIKE BERTELSEN, CHIEF OF POLICE DATE: MAY 18, 2020 SUBJECT: REQUEST TO INCREASE FISCAL YEAR 2019/20 BLANKET PURCHASE ORDER FOR ENTERPRISE FLEET MANAGEMENT, INC. (VEHICLE LEASES) BACKGROUND: The Police Department is requesting authorization to increase the FY 2019/20 blanket purchase order of $66,000.00 for services rendered by Enterprise Fleet Management, Inc. for vehicle leases to $80,000.00. No additional budget is being requested for this request. In accordance with Sec. 2-518 (b) of the Azusa Municipal Code, if the amended contract will exceed $25,000, the city council shall approve the contract. RECOMMENDATION: Staff recommends the City Council take the following action: 1)Approve an increase to the Enterprise Fleet Management, Inc. Blanket Purchase Order for Fiscal Year 2019/20 to a not-to-exceed amount of $80,000. ANALYSIS: The Police Department uses Enterprise Fleet Management, Inc. to lease vehicles. In Fiscal Year 2019/20 a blanket purchase order in the amount of $66,000.00 was issued to the vendor. However, due to the number of leases that expired this year and newer model vehicles replacing them, the blanket purchase order needs to be increased to $80,000.00 in order to pay the last two remaining invoices of FY 19/20. Council action is required to increase the blanket purchase order as the request exceeds the City Manager’s $25,000 approval authority in accordance with the City’s purchasing policy. In 2018 Sourcewell conducted a competitive bid process to acquire leased vehicles. Enterprise Fleet Management, Inc. was the successful bidder and awarded the contract (#060618-EFM) through Sourcewell to provide undercover and surveillance vehicles over a 5-year term ending August 14, 2023. Sourcewell is a member-focused public cooperative of more than 50,000 member agencies throughout APPROVED CITY COUNCIL 5/18/2020 Increase Blanket PO May 18, 2020 Page 2 the Unite States. Sourcewell combines their national procurement power to obtain the best competitively bid price and extends those savings onto participating agencies though cooperative purchasing. FISCAL IMPACT: Sufficient budget is available in the Police Department FY 2019/20 vehicle/lease accounts to cover the cost of the increased blanket purchase order. Prepared by: Reviewed and Approved by: Ericka Garcia Mike Bertelsen Administrative Analyst Chief of Police Fiscal Impact Reviewed by: Reviewed and Approved: Talika M. Johnson Sergio Gonzalez Director of Administrative Services City Manager Attachment: 1) Copy of Sourcewell Enterprise Fleet Management, Inc. contract Attachment 1