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HomeMy WebLinkAbout1998-12-07 City Council (11)TO: FROM: DATE: City of Palo Alto City Manager’s Report HONORABLE CITY COUNCIL CITY MANAGER DEPARTMENT: PUBLIC WORKS DECEMBER 7, 1998 CMR:438:98 SUBJECT:APPROVAL OF CHANGE ORDER TO INCREASE PURCHASE ORDER AUTHORITY FOR AN EXISTING BLANKET PURCHASE ORDER NO. EQU91228 WITH B&M COLLISION REPAIR OF MOUNTAIN VIEW FOR COLLISION REPAIR SERVICES RECOMMENDATION Staff recommends Council approve a change order in the amount of $105,000 to the blanket purchase order with B&M Collision Repair to increase the authority of the existing order to $129,900. DISCUSSION On December 10, 1996, bids were received for collision repair services.- B & M Collision was deemed the lowest responsible bidder and awarded a contract (in the form of a blanket purchase order) in the amount of $24,900. This contract was established for a three year time period. The $24,900 was only intended to cover the first year of the blanket order for the period from December 1996 to December 30, 1997. Contract expenditure requirements were initially underestimated and were quickly exceeded. Both the frequency and cost of fleet vehicle collision repairs have increased substantially over the last twelve months. The recent rise in the City’s accident rate is abnormal and it is anticipated that the number of accidents will decrease. All vehicle accidents have been investigated and documented in accordance with City Policies and Procedures and are being monitored by the Equipment Management Division. RESOURCE IMPACT The original blanket order amount, including change orders, was $24,900 for the first year. This change order request will increase the total purchase order amount to $129,900 (including the third year). Sufficient funds have been budgeted in the FY 1998-99 Public Works Vehicle Replacement Fund Operations and Maintenance Budget to accommodate this contract. CMR:438:98 Page 1 of 2 POLICY IMPLICATIONS This contract change order is consistent with existing City policies. ENVIRONMENTAL ASSESSMENT This project is categorically exempt from the provisions of the California Environmental Quality Act and no further environmental review is necessary. -PREPARED BY: DEPARTMENT HEAD: Keith LaHaie, Fleet Manager Johnella Williams, Contract Manager GLENN S. ROBERTS Director of Public Works CITY MANAGER APPROVAL: / L -HARkiS6Vi - Assistant City Manager CMR:438:98 Page 2 of 2