SR 02-12-2019 3C
City Council
Report
City Council Meeting: February 12, 2019
Agenda Item: 3.C
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To: Mayor and City Council
From: Susan Cline, Director, Public Works, Street & Fleet Services
Subject: First Modification to Agreement with American Moving Parts, LLC for the
Purchase of Brake Parts and Service
Recommended Action
Staff recommends that the City Council authorize the City Manager to negotiate and
execute a first modification to agreement #10508 (CCS) in the amount of $323,088 with
American Moving Parts, LLC, a California-based company, for the purchase and
delivery of brake parts and service for the Public Works Department. This will result in a
five-year amended agreement with a new total amount not to exceed $914,282, with
future year funding contingent on Council budget approval.
Summary
The Fleet Management Section of the Public Works Department is responsible for
providing City staff with vehicles and equipment that are operationally safe to use. This
includes ensuring brake systems are at the highest level of operability. To better
coordinate purchasing efforts between Fleet Management and the Big Blue Bus for like
items and services, Fleet Management is requesting authority to utilize contract #10508
(CCS), managed by the Big Blue Bus, for brake parts and service. Staff recommends
authorizing a first modification to contract #10508 (CCS) with American Moving Parts,
LLC in an amount not to exceed $323,088, for a revised total amount not to exceed
$914,282 over a five-year period.
Discussion
On July 25, 2017, Council awarded a contract with American Moving Parts, LLC in an
amount not to exceed $591,194 for the purchase and delivery of brake reline kits,
hardware, and services to refurbish the braking systems of transit coaches for the Big
Blue Bus, which was executed on December 20, 2017. The bid process yielded one bid
from American Moving Parts, LLC. Although the Big Blue Bus bid called for transit
coach brake parts, American Moving Parts, LLC also offered a 55% discount on other
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parts not specifically listed in the bid. The vendor has offered to extend the same
discount for the brake parts used by Fleet Management in the maintenance and repair
of the City’s light-, medium-, and heavy-duty vehicles, along with pricing for the repair
service on brake rotors and drums. These prices are approximately equivalent to pricing
Fleet Management previously received for parts purchases. Service rates have risen
over the last five years, but the increase is not consequential when compared to the
volume of service work done with the company, which is once over the last 18 months.
The last time Fleet Management went to bid for brake parts and service in 2014,
American Moving Parts, LLC was the only vendor out of three who could provide a
complete range of brake parts and service for the City’s diverse inventory of vehicles
and equipment, including passenger cars and light-, medium-, and heavy-duty trucks.
Over the last year, Procurement staff have identified efficiencies in the procurement
process, one of which involves divisions coordinating inter-departmental bids when they
need to procure similar parts and services. This coordination would help to reduce the
duplication of effort in writing and reviewing staff reports, and reduce the number of bids
processed through the Procurement Services Division. Adding Fleet Management to
this contract would also allow them to take advantage of the 55% discounted rates,
which are comparable to the discounts from the previous bid without needing to conduct
a separate competitive bid process, saving staff time and costs. Fleet Management
staff would utilize the remainder of the contract through December 19, 2022.
Past Council Actions
07/25/17 (Attachment A) Council awarded contract #10508 (CCS) with American Moving
Parts, LLC for brake parts and service.
Financial Impacts and Budget Actions
Staff seeks authority to increase the amount of contract #10508 (CCS) with American
Moving Parts, LLC to supply and deliver brake parts and service for Fleet Management.
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Contract Modification Request
Agreement #
Current Authorized
Amount
Modified Request
Amount
FY 2018-19 Budget
BBB/PW Account #
Total Revised
Contract Amount
10508 (CCS) $591,194 60600008.529300 $591,194
10508 (CCS) $323,088 70500001.529020 $323,088
Total: $914,282
Future year funding is contingent on Council budget approval.
Prepared By: Ryan Kraemer, Senior Administrative Analyst
Approved
Forwarded to Council
Attachments:
A. July 25, 2017 Staff Report (Web Link)
B. American Moving Parts Oaks Form
REFERENCE:
Modified Agreement
No. 10508
(CCS)