For City Council Meeting [July 23, 2019]
TO: Honorable Mayor and City Council
APPROVAL: Rod Foster, City Administrator
FROM: Sean Grayson, Acting Public Works Director
Title
Request City Council to Authorize Issuance of Purchase Orders for Fiscal Year 2019/2020 with:
1. Factory Motor Parts for Vehicle Parts in the Amount of $40,000
2. Fairview Ford for Vehicle Parts and Services in the Amount of $45,000
3. Fritts Ford for Vehicle Parts and Services in the Amount of $45,000
4. Sunrise Ford for Vehicle Parts and Services in the Amount of $45,000
(ACTION)
Body
BACKGROUND:
The Public Works Department maintains City facilities, parks, streets, and its vehicle fleet. As repairs or maintenance work is performed on the City’s nearly 400 units of rolling stock, City staff obtains supplies and materials required for the work from various vendors. Among the supplies most needed by the City are Ford-specific vehicle parts. The Fleet Division purchases a variety of auto parts during the fiscal year to keep the City’s fleet running properly. For many of these vehicles, the parts must be genuine Ford parts or the repair work will void warranties. The City procures these parts from one of the local Ford dealers or Factory Motor Parts, depending on which one has the necessary part in stock.
In addition, some vehicle repairs exceed the Fleet Division’s capabilities or require specialized equipment to maintain the vehicles and/or are considered major repairs. The City outsources these repairs to one (1) of the three (3) area Ford dealers. Examples of repair work outsourced to a dealer are repairs involving programming the vehicle computers, computer scans and other specialized repairs.
ANALYSIS/DISCUSSION:
As in previous years, the City purchases parts from several different vendors. Having more than one vendor available allows Fleet Division staff to order parts from the supplier who has stock available for immediate delivery; thereby reducing vehicle downtime. This is especially important with first responder vehicles used by the Police and Fire Departments.
With the proposed action, staff recommends that City Council approve the issuance of Purchases Orders to:
1. Factory Motor Parts for Vehicle Parts in the Amount of $40,000
2. Fairview Ford for Vehicle Parts and Services in the Amount of $45,000
3. Fritts Ford for Vehicle Parts and Services in the Amount of $45,000
4. Sunrise Ford for Vehicle Parts and Services in the Amount of $45,000
ENVIRONMENTAL IMPACT:
Approval of this item is not a “Project” as defined by the California Environmental Quality Act (CEQA). Pursuant to Section 15378(a), a “Project” means the whole of an action, which has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment. According to Section 15378(b), a Project does not include: (5) Organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment.
GENERAL PLAN CONSISTENCY:
This action is consistent with Guiding Principle 3A in the General Plan:
Our City government will lead by example, and will operate in an open, transparent, and responsive manner that meets the needs of the citizens and is a good place to do business.
LEGAL REVIEW:
The City Attorney has reviewed and approved the staff report.
FINANCIAL IMPACT:
Operating Budget Impact:
Expenditures for vehicle maintenance are charged to the respective department as the costs are incurred. Sufficient budgets will be available in the respective accounts to charge the costs as incurred for fiscal year 2019/2020.
Stocks of supplies are initially purchased from the respective vendors using an inventory account. When supplies are issued and used on fleet vehicles, the respective department expenditure accounts are charged and the inventory account is reduced accordingly. A copy of the Disclosure Forms for all four (4) vendors has been included as Attachment 1.
Capital Improvement Budget Impact:
There is no impact to the Capital Improvement Budget as this Purchase Order is for maintenance.
Business Licensing:
A Business License is not required as this is a purchase from a vendor outside of the City of Rialto.
RECOMMENDATION:
Staff recommends that City Council authorize issuance of a Purchase Order to:
1. Factory Motor Parts for Vehicle Parts in the Amount of $40,000
2. Fairview Ford for Vehicle Parts and Services in the Amount of $45,000
3. Fritts Ford for Vehicle Parts and Services in the Amount of $45,000
4. Sunrise Ford for Vehicle Parts and Services in the Amount of $45,000
All for Fiscal Year 2019/2020.