TITLE
Recommendation to authorize City Manager, or designee, to execute an amendment to Contract No. 35049 with Ray Gaskin Service, of Fontana, CA, for the purchase of New Way, Perkins, and Wayne brand refuse truck parts and repair services, to increase the annual contract amount by $275,000, with a 10 percent contingency in the amount of $27,500, for a revised total annual contract amount not to exceed $605,000; and
Increase appropriations in the Fleet Services Fund Group in the Financial Management Department by $302,500, offset by funds collected from user departments. (Citywide)
DISCUSSION
City Council approval is requested to amend Contract No. 35049 with Ray Gaskin Service for the purchase of New Way, Perkins, and Wayne brand refuse truck parts and repair services, for a revised total annual contract amount not to exceed $605,000. Ray Gaskin Service is the sole authorized distributor and service center for New Way, Perkins, and Wayne refuse truck parts and service in California.
On July 17, 2018, the City Council adopted Resolution RES-18-0100 authorizing the City Manager to execute a contract with Ray Gaskin Service, for the purchase of New Way, Perkins, and Wayne brand refuse truck parts and repair services, in an annual amount not to exceed $302,500, inclusive of a 10 percent contingency.
At that time, the City’s refuse fleet was comprised of 43 New Way truck bodies and 41 McNeilus truck bodies. Currently, the City’s refuse fleet is comprised of 89 units including 65 New Way truck bodies, and 24 units with other truck bodies, including McNeilus. Nine New Way refuse trucks are currently on order including one front loader refuse truck and eight side loader refuse trucks. In addition, 22 refuse trucks are in their fifth and final year of service, with an increased likelihood of breakdowns, costly parts replacements, and repair services. Additional authorization is necessary to ensure the additional parts and repair services needed for the refuse fleet can be used expeditiously.
This matter was reviewed by Deputy City Attorney Taylor M. Anderson on November 10, 2020, Purchasing and Business Services Manager Tara Yeats on November 17, 2020, and by Budget Management Officer Rhutu Amin Gharib on November 24, 2020.
SUSTAINABILITY
Maintenance of vehicles and equipment, including replacement of worn parts, ensures the refuse trucks operate at peak efficiency, reducing downtime and the use of older, less fuel-efficient trucks.
TIMING CONSIDERATIONS
City Council action is requested on December 15, 2020, to ensure the contract amendment is in place expeditiously.
FISCAL IMPACT
The requested amendment will increase the annual contract amount by $302,500, inclusive of a 10 percent contingency, for a revised total annual contract amount not to exceed $605,000 for the remainder of the contract term including subsequent renewals to the contract. An appropriation increase of $302,500 is requested in the Fleet Services Fund Group in the Financial Management Department to accommodate the contract increase. Costs for all parts and services are collected through the Fleet Services Memorandum of Understanding (MOU) monthly billing to the Refuse and Recycling Fund Group in the Public Works Department. This recommendation has no staffing impact 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:
THOMAS B. MODICA
CITY MANAGER