Report to Mayor and City Council
Tuesday, September 05, 2017
Consent
SUBJECT:
Title
CONSIDER APPROVING RESOLUTION NO. 17-129, "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARSON, CALIFORNIA, AMENDING THE FISCAL YEAR 2016/17 BUDGET IN THE GENERAL FUND BY APPROPRIATING FUNDS FOR THE BLANKET PURCHASE AGREEMENT WITH PETE’S ROAD SERVICES, INC." (CITY COUNCIL)
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I. SUMMARY
Pete’s Road Service Inc. (Pete’s), provides routine maintenance, preventative maintenance and repair services on over 40 city owned vehicles. In addition, Pete’s provides tire repair and replacement services for the entire City fleet of over 120 vehicles which comprises both City owned and leased vehicles. Due to the recent consolidation of fleet maintenance and repair services, Pete’s is now the primary vendor and this has necessitated an increase in the amount authorized under their current blanket purchase agreement.
Staff is requesting approval of Resolution No. 17-129 to appropriate funds to the blanket purchase agreement with Pete’s Road Services, Inc. (Exhibit No. 1).
II. RECOMMENDATION
Recommendation
TAKE the following actions:
1. APPROPRIATE $8,407.85 from the salaries account balance to cover the cost of amendments with Pete’s Road Services, Inc.
2. WAIVE further reading and ADOPT Resolution No. 17-129, “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARSON, CALIFORNIA, AMENDING THE FISCAL YEAR 2016/17 BUDGET IN THE GENERAL FUND” to authorize a budget transfer from Salary account 01-80-840-085-5002 to Vehicle Maintenance account 01-80-840-085-7004.
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III. ALTERNATIVES
1. DO NOT APPROPRIATE $8,407.85 from the salaries account balance to cover the cost of amendments with Pete’s Road Services, Inc.
2. DO NOT WAIVE further reading and ADOPT Resolution No. 17-129, “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARSON, CALIFORNIA, AMENDING THE FISCAL YEAR 2016/17 BUDGET IN THE GENERAL FUND” to authorize a budget transfer from Salary account 01-80-840-085-5002 to Vehicle Maintenance account 01-80-840-085-7004.
3. TAKE another action the City Council deems appropriate and consistent with the requirements of the law.
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IV. BACKGROUND
Pete’s provides routine maintenance, preventive maintenance and repair services on over 40 city owned vehicles. They also provide tire repair and replacement services on over 120 (city owned and leased) vehicles.
In early 2016, the City suspended vehicle maintenance services provided by Penske which prompted staff to secure alternative resources for the City’s fleet maintenance requirements. In previous years, Public Works has budgeted over $20,000 for commercial vehicle maintenance and repair services. For FY 2016/17, Purchasing has issued a blanket purchase agreement with Pete’s totaling $24,999. With Pete’s being the primary vendor for fleet maintenance services of City owned vehicles and equipment, an additional amendment of $8,407.85 is needed to reconcile the remaining invoices from April 1, 2017, through June 30, 2017.
In accordance with the City’s current Purchasing Guidelines and Carson Municipal Code, any expenditures totaling over $25,000 per fiscal year for a single vendor requires City Council approval. Staff is submitting Resolution No. 17-129 for approval to satisfy the outstanding balance with Pete’s and continue the City’s fleet maintenance operations.
V. FISCAL IMPACT
There is no impact to the general fund. The amount requested for the blanket purchase order amendment will be transferred from Salary account 01-80-840-085-5002 to Vehicle Maintenance account 01-80-840-085-7004.
VI. EXHIBITS
1. Resolution No. 17-129 (pg. 3)
1.
Prepared by: Therese K. Foisia, Administrative Specialist