HomeMy WebLinkAboutItem 12b - Supplemental Budget Appropriation and Purchase of Pickup TruckResolution No. 7388 – 72 Hour LLC dba National Auto Fleet Group PO
September 21, 2021
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DATE: September 21, 2021
TO: Honorable Mayor and City Council
FROM: Tom Tait, Public Works Services Director
By: Tyler Polidori, General Services Superintendent
SUBJECT: RESOLUTION NO. 7388 AMENDING THE FISCAL YEAR 2021-22
EQUIPMENT REPLACEMENT PROGRAM BUDGET AUTHORIZING A
SUPPLEMENTAL BUDGET APPROPRIATION FOR THE PURCHASE
AND UPFITTING OF ONE 2022 CHEVROLET SILVERADO FOUR-
WHEEL DRIVE PICKUP TRUCK IN THE AMOUNT OF $111,462.42,
OFFSET BY A REDUCTION IN THE EQUIPMENT REPLACEMENT
RESERVE FUND, AND APPROVING A PURCHASE ORDER WITH 72
HOUR LLC DBA NATIONAL AUTO FLEET GROUP FOR THE PURCHASE
OF ONE 2022 CHEVROLET SILVERADO FOUR-WHEEL DRIVE PICKUP
TRUCK IN THE AMOUNT OF $59,324.62.
Recommendation: Adopt and Approve
SUMMARY
On July 15, 2021, an engine bay fire occurred and caused major damage to a 2009
Chevrolet Suburban. The damage cannot be reversed, and the Chevrolet Suburban is
beyond repair and must be replaced. While this is a significant and unplanned cost, the
City’s insurance provider has authorized a claim payout of $111,462.42. After exploring
possible purchasing options, it was determined that using Sourcewell, a national
cooperative purchasing program, enables the City to streamline the process of procuring
this vehicle and receive the best price possible.
It is recommended that the City Council adopt Resolution No. 7388 amending the Fiscal
Year 2021-22 Equipment Replacement Program Budget authorizing a supplemental
budget appropriation for the purchase and upfitting of one new 2022 Chevrolet Silverado
four-wheel drive pickup truck in the amount of $111,462.42, offset by a reduction in the
Equipment Replacement Reserve Fund, and approving a Purchase Order with 72 Hour
LLC dba National Auto Fleet Group for the purchase of one new 2022 Chevrolet Silverado
four-wheel drive pickup truck in the amount of $59,324.62.
Resolution No. 7388 – 72 Hour LLC dba National Auto Fleet Group PO
September 21, 2021
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BACKGROUND
On July 15, 2021, a fire occurred in a 2009 Chevrolet Suburban issued to the Fire
Department while being driven by City staff. The fire originated in the engine bay of the
vehicle and quickly spread to the passenger compartment. An attempt to extinguish the
fire using fire extinguishers was made, but the flames were too severe and required a fire
crew to extinguish them. The fire resulted in damage to the engine, electrical wiring,
interior components, and firefighting equipment stored inside the passenger
compartment. The cost to repair the damage far exceeds the value of the vehicle,
therefore, the insurance company determined that the vehicle is beyond repair and issued
a claim payout to replace the vehicle and associated upfitting equipment. The insurance
company has agreed to provide the City with a claim payout in the amount of $111,462.42.
DISCUSSION
The damaged 2009 Chevrolet Suburban was utilized by the Fire Department as an
incident command vehicle for battalion chiefs to manage and direct fire crews during
emergency situations and was an integral part of firefighting operations. This vehicle was
heavily upfitted with radio communication equipment, firefighting equipment such as self-
contained breathing apparatus, emergency lights, and sirens. The Fire Department is
currently operating without an incident command vehicle which hinders their ability to
effectively assess emergency situations and control firefighting crews. It is imperative
that a replacement vehicle is obtained in a timely manner to ensure that battalion chiefs
are adequately equipped to manage and control crews during emergencies.
The California Government Code authorizes public agencies to participate in cooperative
purchasing agreements such as those established by Sourcewell while still remaining
within the City’s adopted rules and procedures for purchasing. By utilizing a cooperative
purchasing program, the City is able to streamline the procurement process and purchase
vehicles and equipment at a lower cost than traditional competitive bidding. Cooperative
purchasing agreements also leverage economies of scale to enable vendors to provide
goods at reduced costs. Sourcewell awarded a contract to 72 Hour LLC dba National
Auto Fleet Group for a series of light-duty vehicles with related equipment and
accessories. The 2009 Chevrolet Suburban will be replaced with a 2022 Chevrolet
Silverado four-wheel drive pickup truck. The new truck will be upfitted with the required
Fire Department radios and code 3 capabilities, allowing for rapid response to emergency
situations.
The bidding process and the contract with 72 Hour LLC dba National Auto Fleet Group
has been reviewed by the Public Works Services Department and it has been determined
to meet the City’s procurement requirements. A copy of the agreement between
Sourcewell and 72 Hour LLC dba National Auto Fleet Group is attached.
Resolution No. 7388 – 72 Hour LLC dba National Auto Fleet Group PO
September 21, 2021
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ENVIRONMENTAL ANALYSIS
The proposed action does not constitute a project under the California Environmental
Quality Act (“CEQA”) under Section 15061(b)(3) of the CEQA Guidelines, 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 cost for the 2022 Chevrolet Silverado four-wheel drive pickup truck is $59,324.62.
Additional safety lighting and communication equipment upfitting will be required at a cost
of approximately $52,000. Funds in the amount of $111,462.42 will be provided by the
insurance provider for the damaged and non-repairable 2009 Chevrolet Suburban. An
appropriation of $111,462.42 from the Equipment Replacement Reserve Fund is being
requested to purchase the 2022 Chevrolet Silverado four-wheel drive pickup truck in a
timely manner. Sufficient funds are available to cover this request. The $111,462.42
received from the insurance provider will be placed back into the Equipment Reserve
Fund.
RECOMMENDATION
It is recommended that the City Council determine that this action does not constitute a
project and is, therefore, exempt under the California Environmental Quality Act
(“CEQA”); and adopt Resolution No. 7388 amending the Fiscal Year 2021-22 Equipment
Replacement Program Budget authorizing a supplemental budget appropriation for the
purchase and upfitting of one 2022 Chevrolet Silverado four-wheel drive pickup truck in
the amount of $111,462.42, offset by a reduction in the Equipment Replacement Reserve
Fund, and approving a Purchase Order with 72 Hour LLC dba National Auto Fleet Group
for the purchase of one new 2022 Chevrolet Silverado four-wheel drive pickup truck in
the amount of $59,324.62.
Attachments: Resolution No. 7388
72 Hour LLC dba National Auto Fleet Group Proposal
Sourcewell Contract
Letter of Agreement
To Extend the Contract
Between
72 Hour LLC, dba National Auto Fleet Group
490 Auto Center Dr.
Watsonville, CA 95076-3726
And
Sourcewell
202 12th Street NE
Staples, MN 56479
Phone: (218) 894-1930
The Vendor and Sourcewell have entered into an Agreement (Contract #120716-NAF) for the
procurement of Vehicles, Cars, Vans, SUVs, and Light Trucks with Related Equipment,
Accessories and Services. This Agreement has an expiration date of January 17, 2021, but the
parties may extend the Agreement for one additional year by mutual consent.
The parties acknowledge that extending the Agreement for another year benefits the Vendor,
Sourcewell and Sourcewell’s members. The Vendor and Sourcewell therefore agree to extend
the Agreement listed above for a fifth year. This existing Agreement will terminate on January
17, 2022. All other terms and conditions of the Agreement remain in force.
Sourcewell
By: ___________________________________________, Its: Director of Operations &
Procurement/CPO
Name printed or typed: Jeremy Schwartz___________________________________________
Date
72 Hour LLC, dba National Auto Fleet Group
By: ___________________________________________, Its: _________________________
Name printed or typed: _________________________________________________________
Date