TITLE:
title
APPROVE INCREASES IN PURCHASING AUTHORITY TO AGREEMENTS FOR VEHICLE PARTS AND SERVICES
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DEPARTMENT: PUBLIC WORKS DEPARTMENT/MAINTENANCE SERVICES DIVISION
PRESENTED BY: RAJA SETHURAMAN, PUBLIC WORKS DIRECTOR
CONTACT INFORMATION: ROBERT RYAN, MAINTENANCE SERVICES MANAGER (714) 754-5123
RECOMMENDATION:
recommendation
Staff recommends the City Council:
Approve and authorize the City Manager to execute change orders that would authorize an increase in purchase authority of up to $175,000 to each of the following purchase orders for services and vehicle parts for the remainder of the current fiscal year and annually thereafter:
* Ford Motor Company
* NAPA Auto Parts
* South Coast Emergency Vehicle Services
* Southern California Fleet Services
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BACKGROUND:
In order to maintain and repair over 300 pieces of equipment, vehicles and emergency response apparatus, the Equipment Maintenance section of the Public Works Department has purchase orders for services and vehicle parts with the above referenced vendors. Each of the above agreements was executed through a formal bidding process and cooperative agreements that met all requirements set forth in the City of Costa Mesa Municipal Code, Section 2-164(c) and Section 2-165(5) and all requirements set forth by the State of California.
The following are current authorization limits for the above vendor contracts:
* Ford Motor Company - Cooperative Agreement with a $100,000 threshold;
* NAPA Auto Parts - Cooperative Agreement with a $100,000 threshold;
* South Coast Emergency Vehicle Services - Sole Source with a $100,000 threshold;
* Southern California Fleet Services - Competitively bid with a $100,000 threshold.
ANALYSIS:
The Equipment Maintenance section has seen a significant increase in the cost of services, automotive and truck parts. The cost of parts has increased by an average of 15% over the past year. This increase is due to a number of factors, including the rising cost of raw mat...
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