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RESOLUTION NO. 2016-195 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA WAIVING THE COMPETITIVE FORMAL BID REQUIRMENT TO RECEIVE SERVICES FROM DION INTERNATIONAL TRUCKS AND FROM SOUTH COAST EMERGENCY VEHICLE SERVICES FOR REPAIRS TO FIRE-FIGHTING TRUCKS
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RECOMMENDED ACTION
Recommended Action
Council adopt the resolution.
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SUMMARY
Due to an unusually large number of expensive repairs to International brand trucks and to fire-fighting trucks, it is necessary to exceed the Purchasing Policy expenditure limit for two vendors this fiscal year.
Pursuant to Chula Vista Municipal code 2.56.070 relating to contracts exceeding $100,000, City staff is requesting to waive the competitive formal bid requirements and authorize staff to receive services from Dion International Trucks and South Coast Emergency Vehicle Services.
ENVIRONMENTAL REVIEW
Environmental Notice
Environmental Notice
The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required.
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Environmental Determination
The Director of Development Services has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a “Project” as defined under Section 15378 of the State CEQA Guidelines because it will not result in a physical change in the environment; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines, the activity is not subject to CEQA. Thus, no environmental review is required.
BOARD/COMMISSION RECOMMENDATION
Not applicable.
DISCUSSION
Central Garage Operations uses blanket purchase orders with outside vendors in order to obtain parts for vehicles in the City fleet, and in order to effect repairs to City vehicles under certain circumstances. It is preferable to send a vehicle, when necessary, to an outside vendor who is a vehicle manufacturer’s authorized maintenance and repair facility. This ensures that any work performed by the vendor is performed by technicians who are experienced in the make of vehicle being maintained, and that the parts used in the repairs are of first quality. For this reason, blanket purchase orders for the fiscal year were issued to Dion International Trucks, for repair of International brand trucks, and to South Coast Emergency Vehicle Services, a factory authorized representative in San Diego County for Pierce fire trucks.
Due to the increasing age and general condition of the fire-fighting apparatus fleet, it is anticipated that the need for outside vendor repairs will be higher than usual this fiscal year. There are also a large number of repair types, such as transmission and engine overhauls, that are beyond the scope of City staff and shop equipment capabilities. It is expected that this year there will be a larger than normal number of repairs required for both International trucks and for Pierce brand fire-fighting apparatus, which will result in many expenditures to Dion International Trucks and to South Coast Emergency Vehicle Services. Due to deferred vehicle replacements, the age of the fire-fighting fleet is becoming very advanced, resulting in an increasing rate of vehicle break downs. Other than two recently acquired engines, the newest engines in the fleet are twelve years old, and more than four of the eighteen are more than 20 years old.
In order to continue to adequately maintain International trucks and Pierce fire-fighting apparatus, it is anticipated that it will be necessary to expend more than $100,000 with each of these vendors this fiscal year, if the incidence of repairs continues as it recently has.
DECISION-MAKER CONFLICT
Staff has reviewed the decision contemplated by this action and has determined that it is not site-specific and consequently, the 500-foot rule found in California Code of Regulations Title 2, section 18702.2(a)(11), is not applicable to this decision for purposes of determining a disqualifying real property-related financial conflict of interest under the Political Reform Act (Cal. Gov't Code § 87100, et seq.).
Staff is not independently aware, and has not been informed by any City of Chula Vista City Council member, of any other fact that may constitute a basis for a decision maker conflict of interest in this matter.
LINK TO STRATEGIC GOALS
The City’s Strategic Plan has five major goals: Operational Excellence, Economic Vitality, Healthy Community, Strong and Secure Neighborhoods and a Connected Community. This action supports the goal of providing Strong and Secure Neighborhoods, as having emergency service vehicles in good working condition allows staff to emergency services in a timely manner whenever necessary.
CURRENT YEAR FISCAL IMPACT
There is no impact to the current fiscal year Central Garage Operations budget. The costs for vehicle repairs for both International trucks and Pierce brand fire-fighting apparatus will be offset with fuel cost savings within the fiscal year 2016-2017 budget. Staff will continue to monitor vehicle repair cost for International trucks and for fire-fighting apparatus. An appropriation may be required to offset further unanticipated vehicle repairs for both International trucks and Pierce brand fire-fighting apparatus.
ONGOING FISCAL IMPACT
There is no ongoing fiscal impact as a result of this action.
ATTACHMENTS
None.
Staff Contact: Steve Dorsey, Fleet Manager, Public Works