HomeMy WebLinkAbout11 - CC-9 - Ford Motor Company Maintenance Contract - 4/20/20211
CITY COUNCIL AGENDA REPORT
MEETING DATE: APRIL 20, 2021 ITEM NUMBER: CC-9
SUBJECT: FORD MOTOR COMPANY MAINTENANCE CONTRACT FOR CITY
FLEET
DATE: APRIL 13, 2021
FROM: PUBLIC SERVICES DEPARTMENT / ENGINEERING DIVISION
PRESENTATION BY: RAJA SETHURAMAN, PUBLIC SERVICES DIRECTOR
FOR FURTHER INFORMATION
CONTACT:
SEUNG YANG, P.E., CITY ENGINEER
(714) 754-5633
RECOMMENDATIONS:
Staff recommends that the City Council:
1. Approve proposed Change Order (Attachment 1) to Purchase Order No. 13627
(Attachment 2) to the Ford Motor Company in the amount of $20,000 to service
the City’s vehicle fleet for the remainder of Fiscal Year 2020-21.
2. Authorize the City Manager or designee to execute the Change Order.
BACKGROUND:
The Maintenance Services Division under the Public Services Department maintains a
fleet of over three hundred (300) City vehicles including emergency response vehicles
from both the Police Department and Fire Department. Approximately half of the fleet is
comprised of Ford vehicles. Maintenance of these vehicles is critical for providing
services and preserving the life safety of the City’s residents and stakeholders.
The City procures parts and labor services for the City’s vehicle fleet from the Ford
Motor Company through a cooperative agreement using Sourcewell (Attachment 3).
Sourcewell meets all requirements set forth in the City of Costa Mesa’s Purchasing
Policy and all requirements set forth by the State of California in regards to regional
cooperative purchasing agreements. The National Joint Powers Association (NJPA)
established an approved vendor list following a nationwide competitive bid process. This
process confirms the City still receives the lowest available pricing, meets the
competitive bid process requirements, and has been utilized successfully by the City for
several previous capital equipment purchases and services.
2
In order to provide parts and labor services for the Ford vehicles in the City’s vehicle
feet, the Finance Department approved Purchase Order No. 13627 in the amount of
$50,000 to the Ford Motor Company for Fiscal Year 2020-21 (July 1, 2020 through June
30, 2021).
ANALYSIS:
Over half of the City’s fleet is Ford vehicles, and forty-five (45) of those vehicles are
police patrol units. Both Police and Fire vehicles generate a greater amount of overuse
to all mechanical and electronic components due to the demands of daily duties. This
requires more parts and repairs to keep all the City’s Ford vehicles in good working
condition.
As the current allotment of $50,000 is nearly expended, staff requests an additional
$20,000 to fund service parts and repairs to the City’s vehicle fleet for the remainder of
the Fiscal Year to June 30, 2021. According to the City’s adopted purchasing
guidelines, any addition to the original $50,000 allocation requires City Council
approval. Therefore, staff requests City Council approval of the attached change order
to process this increase and to authorize the City Manager or designee to execute the
change order.
ALTERNATIVES CONSIDERED:
The City Council may reject the proposed change order to Purchase Order No. 13627 to
the Ford Motor Company in the amount of $20,000 to service the City’s vehicle fleet for
the remainder of Fiscal Year 2020-21. However, this action would negatively affect
public safety and the daily operations and services rendered by City staff.
FISCAL REVIEW:
No fiscal impact.
LEGAL REVIEW:
The City Attorney’s Office has reviewed this report and approves it as to form.
CITY COUNCIL GOALS & PRIORITIES:
In 2021, the City Council adopted a list of goals and priorities. This project works toward
achieving the following City Council goals and objectives:
(1) “Strengthen Public Safety and Keep the Community Safe”; and
(2) “Maintain and Enhance the City’s Infrastructure, Facilities, Equipment, and
Technology.”
3
CONCLUSION:
Staff recommends that the City Council approve the proposed Change Order to
Purchase Order No. 13627 to the Ford Motor Company in the amount of $20,000 to
service the City’s vehicle fleet for the remainder of Fiscal Year 2020-21, and to
authorize the City Manager or designee to execute the Change Order.
SEUNG YANG, P.E. RAJA SETHURAMAN
City Engineer Public Services Director
CAROL MOLINA KIMBERLY HALL BARLOW
Finance Director City Attorney
ATTACHMENTS:
1 –
2 –
3 –
Change Order for $20,000
Purchase Order No. 13627
Sourcewell Cooperative Agreement
Rev FY16/17; 01.31.17
CITY OF COSTA MESA, CALIFORNIA
Purchase Requisition
Purchase Order Change Order Amendment (Leave Blank for Time
Stamp)
PO No./ PO Ref No.:
(Assigned by Purchasing)
13627
Business Unit: CITY Date Requisitioned: 3/9/2021 Request is for Budgeted item(s)
Department: Public Services Division: Maintenance Services Request is for UNBUDGETED item(s)-(Memo Attached)
Ship To Address: N/A Item(s) Pending Budget Amendment Request #
Contact Person: Mike Tucker Phone Number: (714) 327-7473 Requesting Sole Source (Justification Form Attached)
Send Copy of P.O. to: Contact Person and / or Janet Zuazo Fixed Asset Tag Request
Item
No. Qty Unit Items (Give Full Description: Size, Catalog No. Etc.) Unit Price Estimated
Amount
1 1 N/A Increase Purchase Order Amount to $20,000 $20,000 $20,000
If additional lines are needed, please attach a second sheet.Sales Tax (7.75%):Not Applicable
Const./Prof. Svs. Agmt. Completion Date: N/A Include Shipping Fee:Not Applicable
Insurance Required: Yes (Certificate attached) No Estimated Total Cost:$20,000
Item No. Account Fund Dept./Org. Program Project Amount
1 510607 601 19500 50920 N/A $20,000
Comments:$20,000 Total
Change order to Purchase Order No. 13627 in the amount of $20,000 for a total PO amount of $70,000 ($50,000 +
$20,000). Request made to fund maintenance service to essential City fleet vehicles for the remainder of Fiscal Year
2020-21.
PURCHASING DIVISION USE ONLY
Vendor ID: Buyer: Insurance valid thru:
Ship To/Location: Due Date:
Standard Comments: ACC – ALL – ARR – BLA – CON – DCP – DIS – FCA – FCI - FIX – INS – IS – IST – ORG –QTR – REM – SUB – T&C
FINANCE DEPARTMENT USE ONLY
Available Appropriation: Yes No As of: Confirmed By:
Suggested Vendor: Ford Motor Company
Address: Dept. 121801, P.O. Box 67000
City, State, Zip Code: Detroit, MI 48267-1218
Phone: (313) 495-5953
Contact Person: Anne Tran-Malone
Email: atranmal@ford.com
Ordered By:
Department Director/Authorized Signature
Approved By:
Director of Finance/Purchasing Officer
Approved By:
Chief Executive Officer (when required)
Proper approvals are required before requisition can be processed.
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