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REQUEST FOR <br />COUNCIL ACTION <br />CITY COUNCIL MEETING DATE: <br />JULY 3, 2006 <br />TITLE: <br />CONTRACTS RENEWAL FOR <br />TRANSMISSION SERVICE <br />(SPEC. NO. 04-081) <br />CITY MANAGER <br />RECOMMENDED ACTION <br />CLERK OF COUNCIL USE ONLY: <br />APPROVED <br />^ As Recommended <br />^ As Amended <br />^ Ordinance on 1~' Reading <br />^ Ordinance on 2"d Reading <br />^ Implementing Resolution <br />^ Set Public Hearing For <br />CONTINUED TO <br />FILE NUMBER <br />Renew the contracts for transmission service for a one-year period in the <br />annual aggregate amount not to exceed $35,000 with the following vendors: <br />Vendor: Location: <br />Fiesta Tech Inc. d/b/a Fiesta Transmission Santa Ana <br />Leon's Transmission Service, Inc. Garden Grove <br />McCoy Motor Co., Inc. d/b/a Mills Ford Anaheim <br />DISCUSSION <br />The Finance and Management Services Agency's Fleet Maintenance Division is <br />responsible for the repair and periodic maintenance of the City's 800 fleet <br />vehicles, including police patrol sedans. Various heavy-duty and <br />lightweight vehicles require transmission repairs that cannot be performed <br />on-site at the Corporate Yard. The contract will provide the repairs <br />necessary to ensure safe and efficient vehicle operation. <br />On July 6, 2004, the City Council awarded contracts for a one-year period, <br />with provision for two, one-year renewals. The recommended contract amount <br />reflects a 30 percent reduction over the previous contract period, based on <br />past usage and staff projections for the next contract period. Two vendors <br />have declined to renew based on increasing rates for Liability Insurance <br />and low work volume. Three of the five vendors have performed <br />satisfactorily during the past contract period and have agreed to renew the <br />contracts without an increase in pricing. Staff recommends the final <br />renewal of the contracts. <br />22H-1 <br />