HomeMy WebLinkAbout- - CMSD Fleet Maintenance Services - 9/7/2010CITY COUNCIL AGENDA REPORT
MEETING DATE: SEPTEMBER 7, 2010
ITEM NUMBER:
SUBJECT: AGREEMENT WITH COSTA MESA SANITARY DISTRICT TO PROVIDE FLEET
MAINTENANCE SERVICES
DATE: AUGUST 26, 2010
FROM: PUBLIC SERVICES DEPARTMENT - MAINTENANCE SERVICES DIVISION
PRESENTATION BY: PETER NAGHAVI, PUBLIC SERVICES DIRECTOR
FOR FURTHER INFORMATION CONTACT: BRUCE HARTLEY, MAINTENANCE SERVICES
MANAGER 714-754-5123
RECOMMENDATION
1. Approve an agreement with the Costa Mesa Sanitary District (District) for the City to
perform fleet maintenance and repair services on District vehicles.
2. Authorize the City Manager and the City Clerk to execute the Agreement.
BACKGROUND
In April 2010, Scott Carroll, District General Manager, contacted the City to explore mutual
interest in having the City provide fleet maintenance and repair services for the District's
small fleet of service vehicles and equipment. The District, at that time, was experiencing
very long travel distance to repair facilities and unacceptably slow `turn around' on repairs.
Maintenance Services staff worked cooperatively with Mr. Carroll to develop a scope of
services and establish a framework for an agreement. The proposed agreement and
scope of services was presented to the Board of Directors of the Costa Mesa Sanitary
District (Board) for their consideration on August 26, 2010. The Board approved the
agreement as presented.
ANALYSIS
The City of Costa Mesa (City) currently operates a full-service fleet maintenance and repair
facility in support of over 300 City vehicles and pieces of equipment. Although intended
primarily for the servicing of City vehicles, the City has in the past provided limited fleet
services to other agencies. Vehicle smog testing and certification was provided to the
Orange County Fair & Convention Center vehicles approximately 10 years ago. Vehicle
service and repair was provided for many years to the Airborne Law Enforcement (ABLE)
ground vehicles.
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Currently, the Fleet Maintenance Section of Public Services is operating with a staff of five
mechanics and one supervisor, reduced by one mechanic in the Fiscal Year 2010-11
budget. Although operating with one less mechanic, it is anticipated that the maintenance
and repair of the District's small fleet of four vehicles and four pieces of trailer -mounted
equipment would not require excessive time and would be manageable with current
staffing. As always, City public safety vehicles would continue to receive the highest
priority.
The scope of services as stated in the Agreement (see Attachment) clearly defines the
roles and responsibilities of each agency as it pertains to coordinating the maintenance,
repair, tracking and payment for services. The Agreement states that the District would
pay vendors directly for parts and would pay the City's actual costs for the labor portion of
the service on a monthly basis. Any labor or time spent by City staff on the program would
be paid by the District. However, there would be no revenue in excess of costs or any
`profit' gained by the City for providing the services.
ALTERNATIVES CONSIDERED
No other alternatives were considered for this item.
FISCAL REVIEW
The City would provide fleet maintenance and repair services for the actual cost of the
labor required to complete the work on the vehicle. It is estimated that the City would
receive annual revenue of approximately $7,000 for preventive maintenance work, which
would offset the costs for the staff time associated with the program. Additional revenue
will likely be realized as a result of unplanned repair work performed on District vehicles,
but it would be difficult to accurately forecast that amount at this time.
LEGAL REVIEW
The City Attorney's office has reviewed and approved the attached agreement as to form.
CONCLUSION
The approval of the agreement would provide the Costa Mesa Sanitary District a cost-
effective method of maintaining their vehicles and equipment on a regular schedule without
having to travel a significant distance to receive some of the required specialty repairs.
This will result in reduced costs to the District and improve the service they provide the
residents of Costa Mesa due to less `down time' for their vehicles and the ability to receive
local service below standard industry prices. The agreement also supports cooperation
between the two agencies and fosters local efforts to reduce the cost of public services.
It is recommended that the City Council approve the program and authorize the City
Manager to execute the agreement.
E
COLLEEN O'DONOGHUE
Acting Director of Finance
BRUCE HARTLEY
Maintenance Services Manager
Attachment: Agreement
PETER NAGHAVI
Public Services Director
KIMBERLY HALL BARLOW
City Attorney
Distribution: City Manager
Public Services Director
General Manager, Costa Mesa Sanitary District
City Clerk
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