CITY OF ELK GROVE CITY COUNCIL STAFF REPORT AGENDA ITEM NO. 8.7 AGENDA TITLE: Adopt resolution dispensing with further formal request for proposal procedures and authorizing the City Manager to execute contract amendments with Elk Grove Buick GMC and Downtown Ford Sales for fleet vehicle maintenance and repairs of City vehicles, extending each contract for two years and authorizing an expenditure of funds not-to-exceed $22,500 with Elk Grove Buick GMC [for a total expenditure of funds over the term of the contract not-to-exceed $72,500] and authorizing an expenditure of funds with Downtown Ford Sales not-toexceed $226,000 [for a total expenditure of funds over the term of the contract not-toexceed $622,000] MEETING DATE: November 12, 2014 PREPARED BY: Douglas Scott, Facilities and Fleet Manager DEPARTMENT HEAD: Brad Koehn, Director of Finance and Administrative Services RECOMMENDED ACTION: Staff recommends that the City Council adopt a resolution dispensing with further formal request for proposal procedures and authorizing the City Manager to execute contract amendments with Elk Grove Buick GMC (C-11-456 ) and Downtown Ford Sales (C-12-132) for fleet vehicle maintenance and repairs of City owned vehicles, extending each contract for two years and authorizing an expenditure of funds with Elk Grove Buick GMC not-to-exceed $22,500 [for a total expenditure of funds over the term of the contract not-toexceed $72,500], and authorizing an expenditure of funds with Downtown Ford Sales not-to-exceed $226,000 [for a total expenditure of funds over the term of the contract not-to-exceed $622,000]. 1
Elk Grove City Council November 12, 2014 Page 2 of 3 BACKGROUND INFORMATION: In October 2011, the City announced a Request for Quotations to provide Ford Motor Company and General Motors Original Equipment Manufacturing (O.E.M.) maintenance, repair and parts for City-owned vehicles. Elk Grove Buick GMC and Downtown Ford Sales were successful in this process and were issued contracts C-11-456 and C-12-132, respectively. To evaluate whether the City would achieve cost savings by contracting with one qualified vendor, staff issued a Request for Proposals (RFP 14-11) in September 2014 for Fleet Vehicle Maintenance and Repairs. The RFP was created with the intention of awarding a single contract to a qualified vendor because the fleet is made up of various vehicle manufacturers (Chrysler, Ford, General Motors, Honda, Nissan, and Toyota) with several models. The RFP did not include maintenance and repair for the City s Transit or Police motorcycle fleet. Staff received five responses to the RFP. ANALYSIS: Based on the bid results, the annual combined expenditures for a new contract, if awarded pursuant to the RFP proposal evaluation, would total $168,432. Annual combined expenditures from current contracts with Downtown Ford Sales and Elk Grove Buick GMC for labor, parts, and miscellaneous expenses and credits total $124,313. Staff estimates the savings to extend the existing contracts compared to the RFP proposal results totals $44,119 annually. While MV Transportation scored higher overall in the staff evaluation of the proposals, Downtown Ford Sales and Elk Grove Buick GMC have been providing satisfactory service to the City. Continuing to contract with Downtown Ford Sales and Elk Grove Buick GMC should result in a monetary savings to the City. EGMC section 3.42.188(B)(3) allows the City Council to dispense with the formal RFP procedures at any point before award of contract, whether a formal RFP process has been initiated or not, upon a finding that pursuing the RFP process is not in the best interest of the City. Based on the monetary savings available to the City by continuing the contract with Downtown Ford Sales and Elk Grove Buick GMC, staff recommends that the City dispense with a further RFP process and extend the current contracts to Downtown Ford Sales and Elk Grove Buick GMC. 2
Elk Grove City Council November 12, 2014 Page 3 of 3 RECOMMENDED ACTION: Elk Grove Buick GMC and Downtown Ford Sales continue to provide satisfactory service and a commitment to maintain the City s vehicle fleet. Resolution No. 2011-230 (Elk Grove Buick GMC) and No. 2012-63 (Downtown Ford Sales) allow for amendments, changes, and extensions if those terms are agreeable to both parties. Both have indicated they will continue providing service to the City under the terms and conditions of the existing contracts. By extending these contracts, the City will realize a cost avoidance of $44,119 annually over each of the next two years. Therefore, staff recommends the City Council dispense with the RFP process pursuant to EGMC section 3.42.188(B)(3), and authorize the City Manager to execute amendments to contract C-11-456 for two years with Elk Grove Buick GMC in the amount of $22,500 for a total compensation amount of $72,500 and contract C-12-132 with Downtown Ford Sales for two years in the amount of $226,000 for a total compensation amount of $622,000. FISCAL IMPACT: There is sufficient funding identified in the Fleet division s FY 2014-15 operating budget for this service. ATTACHMENTS: 1. Resolution 2. Contract Amendment - Elk Grove Buick GMC 3. Contract Amendment - Downtown Ford Sales 3
ATTACHMENT 1 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ELK GROVE DISPENSING WITH FURTHER REQUEST FOR PROPOSAL PROCEDURES AND AUTHORIZING THE CITY MANAGER TO EXECUTE AMENDMENTS TO CONTRACTS WITH ELK GROVE BUICK GMC AND DOWNTOWN FORD SALES FOR FLEET VEHICLE MAINTENANCE AND REPAIRS OF CITY OWNED VEHICLES, EXTENDING EACH CONTRACT FOR TWO YEARS AND AUTHORIZING AN EXPENDITURE OF FUNDS NOT-TO-EXCEED $22,500 WITH ELK GROVE BUICK GMC [FOR A TOTAL EXPENDITURE OF FUNDS OVER THE TERM OF THE CONTRACT NOT-TO-EXCEED $72,500] AND AUTHORIZING AN EXPENDITURE OF FUNDS WITH DOWNTOWN FORD SALES NOT-TO-EXCEED $226,000 [FOR A TOTAL EXPENDITURE OF FUNDS OVER THE TERM OF THE CONTRACT NOT-TO- EXCEED $622,000] WHEREAS, Fleet vehicle repair and maintenance of City owned vehicles is necessary in delivering services to the citizens of the City of Elk Grove; and WHEREAS, in October of 2011 the City conducted a formal request for quotations to provide Ford Motor Company and General Motors Original Equipment Manufacturing (O.E.M.) maintenance, repair and parts for City-owned vehicles. Elk Grove Buick GMC was issued contract C-11-456 and Downtown Ford Sales was issued C-12-132 because they were successful in this process; and WHEREAS, staff issued a Request for Proposals (RFP) 14-11 in September 2014 for Fleet Vehicle Maintenance and Repairs, and the RFP was created with the intention of awarding a single contract to a qualified vendor because the City s fleet is made up of various vehicle manufacturers (Chrysler, Ford, General Motors, Honda, Nissan, and Toyota) with several models; and WHEREAS, based on the five proposals received, staff estimates that annual expenditures for a new contract, if awarded pursuant to the RFP proposal evaluation, would be $168,432; and WHEREAS, the combined expenditures from contracts with Downtown Ford Sales and Elk Grove Buick GMC for labor, parts, and miscellaneous expenses and credits is estimated to be $124,313; and WHEREAS, staff estimates a cost avoidance of $44,119 annually over the next two years if the existing contracts with Elk Grove Buick GMC and Downtown Ford Sales are extended through amendment; and WHEREAS, Elk Grove Buick GMC and Downtown Ford Sales have satisfactorily provided fleet vehicle maintenance and repairs for City owned vehicles and have indicated a willingness to continue to provide such services; and WHEREAS, for the reasons presented, it is in the best interest of the City to dispense with further RFP procedures pursuant to Elk Grove Municipal Code section 3.42.188(B)(3). 4
NOW, THEREFORE BE IT FURTHER RESOLVED that the City Council of the City of Elk Grove dispenses with further RFP procedures for RFP 14-11 pursuant to Elk Grove Municipal Code section 3.42.188(B)(3) and authorizes the City Manager to execute amendments providing for a two year contract amendment for fleet vehicle maintenance and repairs of City owned vehicles to contract C-11-456 with Elk Grove Buick GMC authorizing an expenditure of funds not-to-exceed $22,500 [for a total expenditure of funds over the term of the contract not-to-exceed $72,500] and to contract C-12-132 with Downtown Ford Sales authorizing an expenditure of funds notto-exceed $226,000 [for a total expenditure of funds over the term of the contract not-toexceed $622,000]. PASSED AND ADOPTED by the City Council of the City of Elk Grove this 12 th day of November 2014. GARY DAVIS, MAYOR of the CITY OF ELK GROVE ATTEST: JASON LINDGREN, CITY CLERK APPROVED AS TO FORM: JONATHAN P. HOBBS, CITY ATTORNEY 5
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