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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 Page 1 of 3 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 Page 2 of 3 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 Page 3 of 3 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