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Home My WebLink AboutItem 11g - Budget Appropriation for Fire Apparatus and Service Repairs DATE: April 16, 2024 TO: Honorable Mayor and City Council FROM: Chen Suen, Fire Chief By: Tom Devlin, Battalion Chief SUBJECT: RESOLUTION NO. 7556 AMENDING THE FISCAL YEAR 2023-24 GENERAL FUND BUDGET, AUTHORIZING A SUPPLEMENTAL BUDGET APPROPRIATION FOR FIRE APPARATUS AND SERVICE REPAIRS IN THE AMOUNT OF $100,000, OFFSET BY A REDUCTION IN THE GENERAL FUND RESERVE; AND APPROVING A CHANGE ORDER TO THE PURCHASE ORDER WITH PERFORMANCE TRUCK REPAIR INC. IN THE AMOUNT OF $100,000 CEQA: Not a Project Recommendation: Adopt and Approve SUMMARY On August 17, 2021, the City Council approved a three-year purchase order with Performance Truck Repair Inc., with the option to renew for two additional, one-year extensions through September 2024, for fire apparatus service and repairs. The current Fiscal Year 2023-24 purchase order with Performance Truck Repair Inc. is in the amount of $155,000. During Fiscal Year 2023-24, the Fire Department incurred additional unforeseen expenditures for fire apparatus service repairs. The unforeseen expenditures are primarily due to staffing shortages in the Public Works Services Department/Fleet Division but are also related to multiple mechanical failures of the 1995 Reserve Ladder Truck. The unanticipated costs associated with this work will require a change order with Performance Truck Repair Inc., to increase the amount of the current purchase order by 65% or an additional $100,000, for a total purchase order amount of $255,000. It is recommended that the City Council adopt Resolution No. 7556 amending the Fiscal Year 2023-24 General Fund Budget and authorizing a supplemental budget appropriation for fire apparatus and service repairs in the amount of $100,000, offset by a reduction in the General Fund Reserve; and approve a change order to the purchase order with Performance Truck Repair Inc. in the amount of $100,000. Resolution No. 7556 Approve Purchase Order and Change Order with Performance Truck Repair Inc. April 16, 2024 Page 2 of 3 DISCUSSION The Fire Department is responsible for administering the service and repair of its fire apparatus and vehicles that are outside the expertise and resources of the Public Works Services Department/Fleet Division. This has been accomplished by outsourcing this work through a third-party vendor, Performance Truck Repair Inc. For Fiscal Year 2023- 24, Performance Truck Repair Inc. has a purchase order in the amount of $155,000. During this Fiscal Year, Performance Truck Repair Inc. has been utilized more than usual for the unplanned service and repair of fire suppression vehicles, partially due to the shortage of Fleet personnel in the Public Works Services Department, but mostly due to the nature of needed repairs. Most notably, Fire Reserve Truck (T705), a 1995 aerial ladder truck, has had multiple mechanical failures due to its age and consistent use over the years. The replacement of this unit is being proposed as part of the upcoming Fiscal Year 2024-25 Citywide Vehicle Replacement Program; however, a 40-month build time is expected. In the meantime, the best course of action is to prepare for extraordinary repair work, which will require an increase in Performance Truck Repair Inc.’s current purchase order. To sufficiently cover additional and unanticipated expenses to the ladder truck and for the remainder of the Fire Department’s heavy apparatus vehicles, it is necessary to increase Performance Truck Repair Inc. purchase order amount of $155,000 by $100,000 (or 65%), for a total purchase order amount of $255,000. ENVIRONMENTAL ANALYSIS 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. FISCAL IMPACT The current Purchase Order amount for Performance Truck Repair Inc. is $155,000. A supplemental budget appropriation in the amount of $100,00 is being requested from the General Fund Reserve to cover this cost increase. This additional funding will help cover unforeseen maintenance, service, and repairs to the 1995 Fire Reserve Ladder Truck and to other fire vehicles that might need similar outsourcing services. 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”); and adopt Resolution No. 7556 amending the Fiscal Year 2023-24 General Fund Budget, authorizing a supplemental budget appropriation for fire apparatus and service repairs in the amount Resolution No. 7556 Approve Purchase Order and Change Order with Performance Truck Repair Inc. April 16, 2024 Page 3 of 3 of $100,000, offset by a reduction in the General Fund Reserve; and approve a Change Order to the Purchase Order with Performance Truck Repair Inc. in the amount of $100,000. Attachment: Resolution No. 7556 1 RESOLUTION NO. 7556 RESOLUTION NO. 7556 AMENDING THE FISCAL YEAR 2023-24 GENERAL FUND BUDGET, AUTHORIZING A SUPPLEMENTAL BUDGET APPROPRIATION FOR FIRE APPARATUS AND SERVICE REPAIRS IN THE AMOUNT OF $100,000, OFFSET BY A REDUCTION IN THE GENERAL FUND RESERVE WHEREAS, during Fiscal Year 2023-24, the Fire Department incurred additional unforeseen expenditures necessitating an increase to Performance Truck Repair Inc.’s Purchase Order; and WHEREAS, Performance Truck Repair Inc. is the present vendor who performs fire apparatus service and repairs that are outside the scope and expertise of the Public Works Services/Fleet Department, with a current purchase order amount of $100,000; and WHEREAS, during Fiscal Year 2023-24, one of the primary reasons that the Fire Department incurred additional expenditures was due to the staffing shortage experienced by the Public Works Services/Fleet Department causing the Fire Department to utilize Performance Truck Repair Inc.’s service more than usual for the unplanned service and repair of fire suppression vehicles; and WHEREAS, during Fiscal Year 2023-24, the other reason for incurring the additional unforeseen expenditures against Performance Truck Repair Inc.’s current Purchase Order, is due to the 1995 Reserve Ladder Truck’s multiple mechanical failures arising from its age and consistent use over the years and thus, it had undergone repairs outside of the vehicle’s normally scheduled service; and WHEREAS, to ensure that there is sufficient funding to cover the additional incurred expenses of $100,000 that was not budgeted during Fiscal Year 2023-24, a 2 supplemental budget appropriation for fire apparatus and service repairs is necessary to fund this additional cost increase to Performance Truck Repair Inc.’s current Purchase Order amount of $155,000; and WHEREAS, during Fiscal Year 2023-24, the supplemental budget appropriation to Performance Truck Repair Inc.’s Purchase Order will result in a total purchase order amount of $255,000; and WHEREAS, the City Manager has certified that there are sufficient reserves available in the General Fund Reserve for appropriation. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ARCADIA, CALIFORNIA, DOES FIND, DETERMINE AND RESOLVE AS FOLLOWS: SECTION 1. The sum of One Hundred Thousand Dollars ($100,000) is hereby appropriated in the Fire Department, offset with an equal reduction in the General Fund Reserve. SECTION 2. The City Clerk shall certify to the adoption of this Resolution. [SIGNATURES ON THE NEXT PAGE]