Title
Request to Extend Fleet Accident Management Service Agreement (B)
This item involves exercising an option to extend the contract for one (1) year, the second of three (3) one-year extensions, as allowed in the Agreement.
Explanation
In FY03-04, Fleet Management personnel reviewed the process for repairing damaged Fleet vehicles. The review confirmed that the process created extensive vehicle downtime to our customers (operating departments) and that it required several personnel hours from Fleet and Purchasing Staff. Staff concluded that the out tasking of this function would provide cost savings opportunities to our customers by drastically reducing vehicle downtime. Additionally, staff time spent on the process would be reduced, thereby allowing more time for other projects.
In September 2004, the City Commission approved a one-year contract with The CEI Group, Inc. to perform this service, using local vendors who qualified for partnerships. The recommendation from staff included the piggy backing on a contract that was competitively bid by the State of Washington.
Fiscal Note
Funds are available in Fleet Management's Operating Budget for FY06-07.
Recommendation
The City Commission: 1) approve a one-year extension of the current contract with The CEI Group, Inc.; and 2) authorize the City Manager or his/her designee to execute the contract extension.
Alternative Recommendation A: The City Commission return to the former process at a higher cost to the City or to rotate the service through several Paint & Body vendors, which will result in increased staff time and vehicle downtime.