TO:
Honorable Mayor and Members of the City Council
THROUGH:
Mark Danaj, City Manager
FROM:
Bruce Moe, Finance Director
Gwen Eng, Purchasing Manager
SUBJECT:Title
Resolution Authorizing the Purchase of Auto Parts from Completes Plus for the Next Three Years at an Estimated Annual Cost of $50,000; and Authorizing the City Manager to Extend the Terms of the Purchase Order for Up to Two Additional Years (Finance Director Moe).
ADOPT RESOLUTION NO. 17-0093
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Recommended Action
RECOMMENDATION:
Staff recommends that the City Council: a) adopt Resolution No. 17-0093 approving a three-year contract with Completes Plus for the purchase of auto parts with an estimated annual cost of $50,000, and b) authorize the City Manager to extend the term of the contract for up to two additional one-year terms if deemed in the City's best interest.
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FISCAL IMPLICATIONS:
Staff estimates that expenditures against this contract will not exceed $50,000 per year. This estimate is based on the highest volume that the City has historically purchased. Sufficient funds are budgeted and available for on-going maintenance and replacement parts for the City's fleet of vehicles.
BACKGROUND:
The City maintains a fleet of approximately 150 vehicles. A small parts inventory is kept primarily for routine maintenance, which is replenished on a regular basis; however, most parts are ordered on an as-needed basis (this reduces the City's carrying costs for inventory and reduces the likelihood of the City stocking obsolete parts). Vehicle repairs are performed as quickly as possible to minimize any service disruption; therefore, parts must be readily available and delivered in a timely manner.
In responding to the Request for Proposal, vendors provided the City with the brands of after-market auto parts carried. These products are required to meet or exceed original equipment manufacturer (OEM) specifications. In addition, vendor...
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