TITLE
Recommendation to authorize City Manager to increase Blanket Purchase Order Agreement No. BPLB14000047 with Danny's Auto Painting and Body Work, Inc., and Blanket Purchase Order Agreement No. BPLB14000048 with Sada Karobar, dba Eddy's Auto Body & Paint, both of Long Beach, CA, for as-needed auto body and repair services, by $200,000, for a total aggregate annual amount not to exceed $400,000 for a period of two years, with the option to renew for two additional one-year periods, at the discretion of the City Manager. (Citywide)
DISCUSSION
City Council approval is requested to increase the existing agreements with Danny's Auto Painting and Body Work, Inc., and Eddy's Auto Body & Paint by $200,000, for as-needed auto body repair and services. The Citywide Blanket Purchase Orders (BPOs) are utilized by the Department of Financial Management's Fleet Services Bureau, as well as the Harbor, and Water Departments. Fleet Services Bureau uses the majority of the contract authority for the repair of City vehicles.
Repairing damaged vehicles extends their useful life and enables safe operation by the user departments. Painting of damaged areas prevents corrosion of the exposed metal that often occurs in marine environments. Use of multiple vendors has proved to be the most efficient method for returning damaged vehicles to service. Current Purchasing guidelines authorize the City Manager to approve purchases up to $200,000 when a competitive procurement has resulted in three or more price proposals. For the initial $200,000 in this instance, a competitive process was done in July 2014. The action requested of the City Council today is required to authorize an additional contract authority of $200,000, taking the total aggregate annual amount not to exceed $400,000. This additional purchasing authority is required for this term, and is also being recommended for the remaining terms of the agreement.
The annual amount of body repair and painting work needed was estimated at $200,000, split evenly between the two lowest bidders. However, funds are expected to be exhausted before the blanket purchase order renewal date in August 2015 due to extended vehicle lifecycles, resulting in an increase in the number of vehicles needing body repair and painting services.
A formal procurement process was completed on July 8, 2014, and Danny's Auto Painting and Body Work, Inc., and Eddy's Auto Body & Paint, both of Long Beach, CA (Local), were the lowest responsible bidders. In August 2014, BPLB14000047 and BPLB14000048 were issued pursuant to City purchasing guidelines. Contracts are in the first year of a two-year term with options to renew for two additional one-year periods.
This matter was reviewed by Deputy City Attorney Kendra L. Carney on March 17, 2015 and by Budget Management Officer Victoria Bell on March 19, 2015.
TIMING CONSIDERATIONS
City Council action is requested on April 7, 2015 to ensure that as-needed auto body repair services can continue without interruption.
FISCAL IMPACT
Aggregate annual expenditures will not exceed $400,000, and are budgeted in the Fleet Services Fund (IS 386) in the Financial Management Department (FM), in the Harbor Fund (HR 430) in the Harbor Department (HA) and in the Water Fund (EF 130) in the Water Department (WA). Approval of this recommendation will provide continued support to the local economy.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
JOHN GROSS
DIRECTOR OF FINANCIAL MANAGEMENT
APPROVED:
PATRICK H. WEST
CITY MANAGER