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CC - CONSENT: Approval of Amendments to the Purchase Orders with McNeilus Truck and Manufacturing ($10,000), Cummins Cal Pacific LLC ($55,000), Airport Marina Ford ($10,000), Border Recapping LLC ($15,000), Grainger Industrial Supply ($15,000) and Waxie Sanitary Supply ($20,000) for an Additional Aggregate Amount of $125,000 in Fiscal Year 2022-2023.
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Meeting Date: June 26, 2023
Contact Person/Dept.: Elizabeth Shavelson/Finance Department
Phone Number: (310) 253-6018
Fiscal Impact: Yes [X] No [] General Fund: Yes [] No [X]
Attachments: Yes [] No [X]
Public Notification: (E-Mail) Meetings and Agendas - City Council (06/22/2023)
Department Approval: Lisa Soghor, Chief Financial Officer (06/20/2023)
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RECOMMENDATION
Staff recommends the City Council approve amendments to the purchase orders with McNeilus Truck and Manufacturing ($10,000), Cummins Cal Pacific LLC ($55,000), Airport Marina Ford ($10,000), Border Recapping LLC ($15,000), Grainger Industrial Supply ($15,000) and Waxie Sanitary Supply ($20,000) for an additional aggregate amount of $125,000 in Fiscal Year 2022-2023.
BACKGROUND/ DISCUSSION
The City’s Central Stores Division supports the operations of the City, including fleet maintenance, with the purchase and storage of supplies, parts and equipment. Over the last few years, there have been significant shifts in the global supply chain and commercial sector. These shifts have increased prices and presented significant challenges to the procurement of supplies, parts, and equipment throughout Fiscal Year 2022-2023. This has impacted the procurement of automotive and truck parts in particular. At the same time, most City Departments have returned to pre-pandemic service levels, and Culver CityBus is currently preparing to return to pre-pandemic transit service, increasing the City’s demand for supplies, parts, and equipment.
Central Stores seeks to provide all requested materials in a timely manner to support continuity of government services, minimize vehicle downtime and support essential fleet operations. To support the City’s fleet, Central Stores staff has had to rely on different vendors to provide the Equipment Maintenance Division with necessary parts and equipment expeditiously. There have been several occasions over the past year that McNeilus Truck and Manufacturing, Cummins Cal Pacific LLC, Airport Marina Ford, and Border Recapping LLC have been the only vendors able to provide specific parts quickly enough to avoid service delays. To support various City departments, staff has had to rely more on Grainger Industrial Supply and Waxie Sanitary Supply.
At the beginning of the fiscal year, the City established Purchase Orders with multiple vendors. In Fiscal Year 2022-2023, Central Stores has had to rely more certain vendors to provide supplies and quality parts with minimal lead-time. As a result, the City’s existing Purchase Orders with these vendors need to be amended as detailed in the chart below.
|
Vendor |
Existing PO Amount |
Proposed PO Amount |
Increase |
|
McNeilus Truck and Manufacturing |
$50,000 |
$60,000 |
$10,000 |
|
Cummins Cal Pacific LLC |
$130,000 |
$185,000 |
$55,000 |
|
Airport Marina Ford |
$50,000 |
$60,000 |
$10,000 |
|
Border Recapping LLC |
$50,000 |
$65,000 |
$15,000 |
|
Grainger Industrial Supply |
$50,000 |
$65,000 |
$15,000 |
|
Waxie Sanitary Supply |
$50,000 |
$70,000 |
$20,000 |
These proposed increases exceed the City Manager’s purchasing authority of $50,000 per vendor per fiscal year; therefore, staff seeks City Council approval to amend the existing purchase orders with McNeilus Truck and Manufacturing, Cummins Cal Pacific LLC, Airport Marina Ford, Border Recapping LLC, Grainger Industrial Supply and Waxie Sanitary Supply, as detailed in the chart above, for an additional aggregate amount of $125,000.
FISCAL ANALYSIS
There is sufficient funding in the Revised Budget for Fiscal Year 2022-2023 in Account No. 31014600.600900 (Central Stores) for this amendment.
ATTACHMENTS
None.
MOTIONS
That the City Council:
1. Approve amendments to the purchase orders with McNeilus Truck and Manufacturing ($10,000), Cummins Cal Pacific LLC ($55,000), Airport Marina Ford ($10,000), Border Recapping LLC ($15,000), Grainger Industrial Supply ($15,000) and Waxie Sanitary Supply ($20,000) for an aggregate additional amount of $125,000; and,
2. Authorize the Purchasing Officer to execute such purchase orders on behalf of the City.