| | | | | | | | Agenda Item - 2.g.
City of Garden Grove
INTER-DEPARTMENT MEMORANDUM
| To: | Scott C. Stiles
| From: | William E. Murray
| | Dept.: | City Manager
| Dept.: | Public Works
| | Subject: | Authorization of an increase to the purchase orders with Global Collision Center, Big Ron’s Auto Body and Paint, and Caliber Collision for auto body parts and labor. (Cost: $100,000) (Action Item) | Date: | 4/12/2022 |
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| | | | | | | | OBJECTIVE
To obtain City Council approval to appropriate funding and authorization to increase the purchase orders with Global Collision Center, Big Ron’s Auto Body and Paint, and Caliber Collision for the purchase of various auto body parts and labor for repair of City vehicles. |
| | | | | | | | BACKGROUND
The Public Works Department Vehicle Maintenance Division is responsible for maintaining the City’s fleet of vehicles and equipment. On July 27, 2021, the City Council approved a purchase order split between three (3) vendors, Global Collision Center, Big Ron’s Auto Body and Paint, and Caliber Collision in the amount of $150,000 per year for a term of five (5) years. Due to unforeseen factors that include an increase in the number of collisions, along with an increase in the cost of parts used for repairs, the purchase order has been exhausted. We have vehicles currently under repair and unpaid invoices. |
| | | | | | | | DISCUSSION
Vehicle Maintenance is projecting an increase of $100,000 for the remainder of the current year’s purchase order as well as an increase in the remaining four (4) years that were approved by the City Council. |
| | | | | | | | FINANCIAL IMPACT
The financial impact to the Fleet Management Fund would be $100,000, for a total of $250,000. There is no impact to the General Fund.
Due to the increased costs of parts and increase in services, an additional $100,000 needs to be appropriated from the Fleet Management Fund to the Fiscal Year 21/22 Budget. |
| | | | | | | | RECOMMENDATION
It is recommended that City Council:
- Authorize an increase of the current purchase orders with Global Collision, Big Ron’s Auto Body and Paint, and Caliber Collision in the amount of $100,000, for a total of $250,000 per year, for five (5) years; and
- Authorize the appropriation of $100,000 from the Fleet Management Fund to the Fiscal Year 2021/22 Budget.
By: Steve Sudduth, Equipment Maintenance Supervisor
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