Title
Supplemental No. 4: BMW Motorcycle Original Equipment Manufacturer (OEM) Parts and Repairs
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FileID
File ID: 2024-01033
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Location
Location: Citywide
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Recommendation
Recommendation: Pass a Motion authorizing the City Manager or City Manager’s designee to execute Supplement No. 4 to Contract No. 2020-2566 with A&S Motorcycle Parts, Inc. for the purchase of BMW Motorcycle original equipment manufacturer (OEM) parts and services increasing the amount of the contract by $150,000 for a revised total contract not-to-exceed amount of $500,000.
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Contact
Contact: Bobbie Small, Program Specialist, (916) 808-6711, bsmall@cityofsacramento.org; Alison Kerstetter, Fleet Manager, (916) 808-1163, akerstetter@cityofsacramento.org; Department of Public Works
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Presenter
Presenter: None.
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Attachments
Attachments:
1-Description/Analysis
2-Supplemental Agreement No. 4
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Description/Analysis
IssueDetail
Issue Detail: The Department of Public Works, Fleet Management Division, consistently needs to procure BMW Motorcycle original equipment manufacturer (OEM) parts and repair services for the City’s BMW Motorcycle fleet.
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PolicyConsiderations
Policy Considerations: The recommendations in this report are in accordance with City Code Section 3.56.290, which requires City Council approval of supplemental contracts that increase the contract amount beyond the city manager’s statutory authority.
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EconomicImpacts
Economic Impacts: None.
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EnvironmentalConsiderations
Environmental Considerations:
California Environmental Quality Act (CEQA): California Environmental Quality Act (CEQA): No environmental review is necessary because the recommendations in this report involve the purchase of vehicle services and are not considered to be a project in accordance with Section 15378(b)(2) of the California Environmental Quality Act guidelines.
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Sustainability
Sustainability: Not Applicable
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Commission/Committee Action
Commission/Committee Action: None.
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RationaleforRecommendation
Rationale for Recommendation: The Department of Public Works, Fleet Management Division conducted extensive research to locate an authorized BMW Motorcycle service center capable of providing parts and servicing for the City’s BMW Motorcycle fleet. Authorized service centers undergo specialized training by manufacturers to handle parts and repairs for their specific brands of vehicles or equipment. This is critical for maintaining warranty integrity, as repairs and preventative maintenance completed by authorized service centers ensure warranty validity. The City Council awarded the contract with an initial not-to-exceed amount of $350,000. Three subsequent supplemental contracts extended the time of performance. However, due to a higher rate of utilization than originally projected, the current contract authority is expected to be depleted before the contract term ends. Therefore, Fleet Management Division recommends approving Contract Supplement No. 4 to prevent any service disruptions.
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FinancialConsiderations
Financial Considerations: Sufficient funds are available in the Department of Public Works, Fleet Management Division’s, Fiscal Year (FY) 2023/24 operating budget (Fleet Fund, Fund 6501) to purchase BMW Motorcycle original equipment manufacturer (OEM) parts and repairs through June 30, 2024. Purchases made after June 30, 2024, are subject to funding availability in the adopted budget of the applicable fiscal year.
Due to the forecasted structural budget gap, the City Manager has directed City departments to minimize costs and for all new contracts to receive an additional level of scrutiny to ensure they are necessary for the operation of the City. This contract has been reviewed and approved by the City Manager’s Office to advance to Council for approval. Funding for the proposed contract beyond FY2023/24 is subject to Council approval.
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LocalBusinessEnterprise
Local Business Enterprise (LBE): A&S Motorcycle Parts, Inc. is not an LBE vendor. The minimum LBE participation requirement was waived by the Director of Public Works.
Staff conducted an extensive search within the local area and found one authorized service center within a 20-mile radius.
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