TITLE
Recommendation to adopt resolution authorizing City Manager, or designee, to amend Contract No. 35110 with Haaker Equipment Company, of La Verne, CA, for Elgin Pelican street sweeper equipment, to add maintenance services to the scope of the contract, and increase the annual contract amount by $125,000, with a 10 percent contingency in the amount of $12,500, for a total annual contract amount not to exceed $577,500, for the current contract period and all subsequent years of the contract. (Citywide)
DISCUSSION
On October 23, 2018, the City Council approved a contract with Haaker Equipment Company (Haaker) for the purchase of Elgin Pelican street sweeper parts, in an annual amount not to exceed $440,000, for a period of two years with the option to renew for three additional one-year periods.
City Council approval is requested to amend Contract No. 35110 with Haaker to increase the annual contract authority by $125,000, with a 10 percent contingency, for a revised total annual contract amount not to exceed $577,500, and to add maintenance services to the scope of the contract, which is currently a parts-only contract.
The City’s fleet of Elgin Pelican sweepers are five years past their useful life and require extensive maintenance to keep the units in operational condition. Additional service assistance is needed for breakdowns that are occurring more frequently in the older units. Currently, Fleet Services technicians provide daily inspection, parts replacement, and preventative maintenance for the 14 sweepers currently in operation. Eleven new street sweepers have been ordered and delivery is expected between August and September 2020.
Haaker is the sole authorized distributor of Elgin Pelican street sweeper parts in the region and is the only authorized dealer in Southern California able to perform warranty work on the Elgin Pelican street sweepers. Part replacement work requires the use of proprietary software, which is only accessible by authorized distributors.
City Charter Section 1801 requires that contracts for City purchases be awarded to the lowest responsible bidder after a competitive bid process but allows for awards without a competitive bid process if accompanied by a Resolution adopted by the City Council.
This matter was reviewed by Deputy City Attorney Taylor M. Anderson on March 22, 2019, by Purchasing and Business Services Manager Sandy Tsang-Palmer on April 2, 2019, and by Budget Management Officer Rhutu Amin Gharib on April 3, 2019.
SUSTAINABILITY
Maintenance of the City’s street sweepers, including replacement of worn parts and regular service, ensures optimal efficiency, operational performance, and safety requirements for operators and the public.
TIMING CONSIDERATIONS
City Council action is requested on April 23, 2019, to ensure the contract amendment is in place expeditiously.
FISCAL IMPACT
The total annual contract amount will not exceed $557,500, and is budgeted in the Fleet Services Fund (IS 386) in the Financial Management Department (FM). Costs for street sweepers are charged to user departments in the Fleet Services MOU and are collected through the monthly billing process. This contract amendment is not expected to require additional staff hours beyond the normal budgeted scope of duties and is consistent with existing City Council priorities. There is no local job impact associated with this recommendation.
SUGGESTED ACTION
Approve recommendation.
BODY
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Respectfully Submitted,
JOHN GROSS
DIRECTOR OF FINANCIAL MANAGEMENT
APPROVED:
PATRICK H. WEST
CITY MANAGER