Title
Consider a memorandum/resolution approving a change order with Caldwell Country Chevrolet for utility body trucks resulting in a total increase, in the amount of $85,895.
Body
DATE: September 17, 2024
TO: Kent Cagle, City Manager
FROM: Judith Tangalin, Executive Director of Finance
SUBJECT: Authorization of Change Order with Caldwell Country Chevrolet.
BACKGROUND AND FINDINGS:
As part of the approved FY 2022 Fleet Replacement Program purchases, there were five (5) Chevrolet C3500 utility body trucks quoted and ordered at 2022 model year pricing for the Public Works Transportation Division. Unfortunately, as a result of the pandemic, General Motors cut production of those 2022 model year units and changed them to 2025 model years with higher pricing. This price increase affected one purchase order (PO). Due to the PO price increase exceeding the $50,000 limit, the change order requires City Council approval.
PO No. 224123, currently issued for $740,745.00, contains the five (5) 2022 model year utility body trucks that would increase by $17,179.00 per unit, from $58,929.00 to $76,108.00, for a combined total increase of $85,895.00. This results in a new PO total of $826,640.00. If the same units were to be reordered at this time, they would cost approximately $8,000 more and take six months to be delivered. These five (5) current units are expected to be delivered in late October 2024.
THE ALTERNATIVES CONSIDERED:
1.) Reduce the total number of units ordered by two, which would cause the department to operate in a reduced resource capacity and incur additional repair and maintenance expense to units that are already overdue for replacement.
2.) Approve the change order with Caldwell Country Chevrolet in the amount of $85,895 to provide effective services.
Which alternative is recommended? Why?
The second alternative is recommended to meet the division’s mission.
CONFORMITY TO CITY POLICY:
Purchases made through a cooperative contract are exempt from the competitive bidding process as stated in Texas Local Government Code (TLGC) section 271.102, subchapter F.
FINANCIAL IMPACT:
What is the amount of the revenue/expenditure in the current fiscal year? For future years?
|
Department |
FY 2024 |
|
Public Works |
$85,895.00 |
|
Total |
$85,895.00 |
The purchase pricing increase from Caldwell Country Chevrolet utilizing the Texas Association of School Boards (TASB) BuyBoard Cooperative is as follows:
|
Make/Model |
PO No. |
Units |
Cost Increase |
Total Cost Inc. |
|
Chevrolet 3500 Utility Body Truck |
224123 |
5 |
$17,179.00 |
$85,895.00 |
|
Total |
$85,895.00 |
Is this a one-time or recurring revenue/expenditure?
This is a one-time expenditure.
Is this revenue/expenditure budgeted?
Yes, upon approval of the year-end budget amendment, funds will be included in the following account:
|
Department/Division |
Account |
Cost |
Available Funds |
|
Public Works/Transportation |
349-8834-493.61-10 |
$85,895.00 |
$85,895.00 |
|
Total |
|
$85,895.00 |
$85,895.00 |
If not, where will the money come from?
N/A
Is there a sufficient amount in the budgeted line-item for this revenue/expenditure?
Yes, upon approval of the year-end budget amendment.
RECOMMENDATION:
Staff recommends City Council approve the change order with Caldwell Country Chevrolet in the amount of $85,895.
DEPARTMENTAL CLEARANCES:
Public Works
Purchasing
Finance
Legal
ATTACHED SUPPORTING DOCUMENTS:
Quotes
Change Order Forms
Certificate of Interested Parties
Presentation