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Agenda Item 31.

City Council Meeting

Meeting Date:	07/17/2018
FROM:	Bill Gallardo

Subject:

Annual Vehicles and Equipment Purchase Plan for Fiscal Year 2018-19

RECOMMENDATION

Authorize the Purchasing Agent to issue purchase orders in an amount not-to-exceed $612,550 for various City vehicles and equipment described in the Annual Vehicles and Equipment Purchase Plan for Fiscal Year 2018-19.

BACKGROUND/DISCUSSION

Each fiscal year, the vehicles and equipment (Equipment) used by various City departments are assessed to determine whether it is best to continue maintenance, to retire, replace, or add new units. The determining factors include excessive mileage; unit hours; age and normal life expectancy; maintenance costs and history; and safety and environmental impacts. The attached equipment list indicates the replacements that were approved in the new fiscal year budget. This list provides the equipment descriptions, quantities, estimated costs, and departments where they will be assigned. For this fiscal year, the requirements are for replacements only, no additional units are planned. The Purchasing Division will solicit bids for the listed equipment per the formal bidding requirements of the Brea Municipal Code, or utilize competitively bid national cooperative agreements or piggybackable contracts, whichever provides the best available pricing and is in the best interests of the City.

Staff requests that Council authorize the Purchasing Agent to issue purchase orders immediately after completing the best available pricing analysis, without the need to return to City Council for approval of the individual awards, in order to ensure the needed equipment is replaced in a timely fashion and without interruption in service; to meet manufacturer production cutoff dates; to take advantage of incentives and discounts; and to expedite the purchase of these items. Should any of the listed equipment be limited to a single source, the Purchasing Agent will verify and document the reasons for the sole source procurement prior to award. Vehicle and equipment purchase updates will be provided to the Finance Committee throughout the year as an informational item only.

To help facilitate operational and budgetary requirements, staff requests that Council authorize the Equipment Maintenance Supervisor and Purchasing Agent to make changes in the type and quantity of the listed equipment, subject to budget appropriations and the not-to-exceed amount requested.

COMMISSION/COMMITTEE RECOMMENDATION

The Finance Committee reviewed staff’s recommendation at their July 10, 2018 meeting and was recommended for City Council approval.

FISCAL IMPACT/SUMMARY

The City Council adopted Fiscal Year 2018-19 Budget has sufficient funding available for the requested not-to exceed amount for these purchases in the Public Works Department, Equipment Maintenance Division, Expenditure Accounts for Field and Shop Equipment and Mobile Equipment (480-51-5161-4641 and 4621).

RESPECTFULLY SUBMITTED:

William Gallardo, City Manager
Prepared by: Neil Groom, Procurement and Contracts Administrator
Concurrence: Cindy Russell, Administrative Services Director

Attachments
Vehicle Replacement Schedule Fiscal Year 2018-19