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HomeMy WebLinkAboutItem 12f - Change Order to Fire Apparatus Service and Repairs DATE: February 4, 2020 TO: Honorable Mayor and City Council FROM: Michael Lang, Fire Chief By: Kevin Valentine, Battalion Chief Maria Lourdes A. Taylor, Sr. Management Analyst SUBJECT: RESOLUTION NO. 7293 AMENDING THE FISCAL YEAR 2019-20 GENERAL FUND BUDGET AUTHORIZING A SUPPLEMENTAL APPROPRIATION IN THE FIRE DEPARTMENT IN THE AMOUNT OF $70,000, OFFSET BY A REDUCTION IN THE GENERAL FUND RESERVE, AND APPROVING A CHANGE ORDER TO THE PURCHASE ORDER WITH PERFORMANCE TRUCK REPAIR, INC. Recommendation: Adopt SUMMARY On September 6, 2016, the City Council approved a three-year purchase order with Performance Truck Repair Inc. with annual renewals through September 2021 for its fire apparatus service and repairs. The current purchase order is in the amount of $267,000. Last year, two of the Arcadia Fire Department’s suppression apparatus experienced unforeseen damage with substantial repairs totaling $220,304. Even though a majority of the expenses are reimbursable under the City’s insurance policy (accidental damage), a balance of at least $67,486 is not. This requires an amendment to the approved purchase order. It is recommended that the City Council adopt Resolution No. 7293 amending the Fiscal Year 2019-20 General Fund Budget authorizing a supplemental appropriation in the Fire Department in the amount of $70,000, offset by a reduction in the General Fund Reserve, and approving a change order to the purchase order with Performance Truck Repair, Inc. Change Order to Fire Apparatus Service and Repairs February 4, 2020 Page 2 of 3 DISCUSSION The Arcadia Fire Department is responsible for servicing and repairing fire apparatus and vehicles that are outside the expertise and scope of resources of the Public W orks Services Department. On September 6, 2016, the City Council approved a three-year purchase order with Performance Truck Repair Inc. for fire apparatus service, with an option to renew for an additional two one-year extensions or through September 2021. For Fiscal Year 2019-20, the purchase order amount with Performance Truck Repair Inc. is $267,000. Last year, two of the Arcadia Fire Department’s suppression vehicles experienced unforeseen damage with substantial repairs resulting in an exceedance to the current purchase order with Performance Truck Repair. In total, the service and repair costs were $220,304. The repairs sustained were for the following: 1) Truck 705 (Asset no. 60182, 1995 Spartan aerial fire truck) due to an electrical fire where damage totaled $162,818; and 2) Engine 107 (Asset no. 80226, a 2007 Pierce pumper) experienced severe engine and transmission failures requiring immediate attention and repair, with charges totaling $57,486. Truck 705’s (1995 aerial fire truck) damage was caused by an electrical fire; hence, majority of the repairs were covered under the City’s liability insurance minus the $10,000 deductible. Essentially, the City will recover $152,818, or almost 95%, of its repair/service charges from the City’s insurance claim. Presently, of the $162,818 total invoice, the City has received a reimbursement of $75,167 (or 46% of its total charges) from the City’s insurance company. Staff is working diligently to recover the remainder of the approved claim. Conversely, Engine 107’s (2007 Pierce pumper) issues were due to significant engine and transmission failures, which are not covered under the City’s insurance policy since the damage was caused by “normal” mechanical failure. Given the unanticipated damage with extensive repair costs associated for both fire suppression apparatus, it is necessary to increase Performance Truck Repair Inc.’s purchase order cost by $70,000 to cover the $10,000 deductible from Truck 705’s fire damage plus the approximately $60,000 service and repair charges to fix Engine 107’s engine and transmission failures. This change order will increase the current purchase order amount of $267,000 to $337,000, a 26% increase. Additionally, to fund these requisite repairs, it is essential that a supplemental appropriation be allocated. Change Order to Fire Apparatus Service and Repairs February 4, 2020 Page 3 of 3 ENVIRONMENTAL IMPACT The proposed action does not constitute a project under the California Environmental Quality Act (“CEQA”), and it can be seen with certainty that it will have no impact on the environment. Thus, this matter is exempt under CEQA. FISCAL IMPACT The current purchase order for Performance Truck Repair Inc. is $267,000. Last year, two of the Arcadia Fire Department’s suppression apparatus suffered substantial damage that required extensive repairs totaling $67,486 in unreimbursed costs. As such, a supplemental appropriation in the amount of $70,000 is being requested from the City’s General Fund Reserve to adequately fund these unanticipated yet essential repairs. RECOMMENDATION It is recommended that the City Council find that the proposed action does not constitute a project under the California Environmental Quality Act (“CEQA”); adopt Resolution No. 7293 amending the Fiscal Year 2019-20 General Fund Budget authorizing a supplemental appropriation in the Fire Department in the amount of $70,000, offset by a reduction in the General Fund Reserve; and approving a change order to the purchase order with Performance Truck Repair, Inc. Attachment: Resolution No. 7293