TITLE:
title
APPROVE INCREASE IN PURCHASING AUTHORITY WITH PIVOT SOLUTIONS
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DEPARTMENT: PUBLIC WORKS DEPARTMENT/GENERAL SERVICES
PRESENTED BY: RAJA SETHURAMAN, PUBLIC WORKS DIRECTOR
CONTACT INFORMATION: PATRICK BAUER, DEPUTY PUBLIC WORKS DIRECTOR, (714) 754-5029
RECOMMENDATION:
recommendation
Staff recommends the City Council:
1. Approve and authorize the City Manager to execute change orders with Pivot Solutions LLC, dba: Maaco Store that would authorize an increase in purchase authority to $200,000 for vehicle paint and body repair services for the remainder of the current fiscal year and annually thereafter.
2. Approve an appropriation of $100,000 in the Equipment Replacement Fund (Fund 601) fund balance for additional paint and body repair services.
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BACKGROUND:
In order to maintain and repair over 300 items consisting of equipment, vehicles, and emergency response apparatus, the Equipment Maintenance section of the Public Works Department has secured a purchase order for services with Pivot Solutions LLC. The agreement, with an authorization limit of $100,000, was executed through a formal bidding process that met all requirements set forth in the City of Costa Mesa Municipal Code, Section 2-164(c) and all requirements set forth by the State of California.
ANALYSIS:
The Equipment Maintenance section has seen a significant increase in the number of vehicles requiring paint and body services as well as an increase in the types of services for each vehicle. As of today, the City has nearly expended its current contract and has vehicles in the queue for upcoming repair and services Additionally, the repair costs for new police interceptors are significantly higher than the older vehicles that were previously projected. The current $100,000 limit does not provide sufficient funding for all needed repairs for the current fiscal year.
Increasing the purchasing authority in the contract will allow the City to continue to provide services through the agreement with Pivot Solutions for the repair and paint of vehicles for the remaining fiscal year. Staff requests an increase to the purchase order to $200,000 that is based on current costs and staff projects this increase will provide sufficient funding to address current and future needs.
ALTERNATIVES:
The City Council could choose to not approve the increase in contract authority to the above referenced purchase orders. However, this alternative is not recommended as it would severely impact public safety and daily City operations.
FISCAL REVIEW:
The increase in the purchasing authority with Pivot Solutions for paint and body repair services will be funded by the Equipment Replacement Fund (601) undesignated fund balance. This appropriation will provide sufficient funding for the City to address current and future needs for requested services for this fiscal year. For future fiscal years, proposed budgets will take into account the increased need and costs for these services.
LEGAL REVIEW:
The City Attorney’s Office has reviewed this agenda report and approves it as to form.
CITY COUNCIL GOALS AND PRIORITIES:
This item supports the following City Council Goal:
• Strengthen the Public’s Safety and Improve the Quality of Life.
• Maintain and Enhance the City’s Facilities, Equipment and Technology.
CONCLUSION:
Staff recommends the City Council:
1. Approve and authorize the City Manager to execute change orders with Pivot Solutions LLC, dba: Maaco Store that would authorize an increase in purchase authority to $200,000 for vehicle paint and body repair services for the remainder of the current fiscal year and annually thereafter.
2. Approve an appropriation of $100,000 from the Equipment Replacement Fund (Fund 601) fund balance for additional paint and body repair services.