Title
Supplemental No. 1: Installation and Repair of Vehicle Response Equipment and Lighting
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FileID
File ID: 2024-00970
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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. 1 to Contract No. 2024-0056 with Derotic LLC, dba Derotic Emergency Equipment for the purchase of installation and repair services for vehicle response equipment and lighting increasing the amount of the contract by $600,000 for a revised total contract not-to-exceed amount of $900,000 for a five-year term.
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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. 1
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Description/Analysis
IssueDetail
Issue Detail: The Fleet Management Division, part of the Department of Public Works, consistently requires procurement of installation and repair services for vehicle response equipment and lighting throughout the City’s diverse fleet. This includes emergency response equipment and lighting for city fire and police vehicles, along with safety lighting for pickups and utility trucks.
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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 Fleet Management Division released an RFP for the installation and repair of vehicle response equipment and lighting on November 8, 2023. Multiple responses were received. Fleet Management staff evaluated and ranked each proposal. Given the extended scheduling time for vehicle repairs and installation of vehicle response equipment and lighting, the City needed more than one vendor to provide these services. Every vendor that submitted a proposal was recommended for a contract.
Fleet Management awarded Derotic LLC Contract 2024-0056 in an amount not to exceed $300,000. The Fleet Management Division has determined that, due to a higher rate of utilization than originally anticipated, the current contract authority will be exhausted prior to the end of the contract term and recommends approval of Contract Supplement No. 1 to avoid any disruption in service.
Contract 2024-0056 is in the first year of a contract, the City may extend to continue service four additional one-year terms for a potential five-year term. The revised contract amount will be sufficient for the full potential five-year term. The contract is for on-call as-needed services and as such the vendor is not guaranteed the full contract amount.
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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 installation and repair of vehicle response equipment and lighting 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): Derotic LLC, dba Derotic Emergency Equipment is not an LBE vendor. The minimum LBE Participation requirement was waived by the Director of Public Works since there were only three vendors that would meet the specifications for the bid.
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