Agenda

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Item # 9.

Work Session and Regular Meeting

Meeting Date:	09/24/2019
Department:	General Services
Pillars:	Excellence in Asset Management

AGENDA CAPTION:

Consider Action on a Resolution Approving a Change Order in the Amount of $90,000 to Vector Fleet Management, LLC, for Fleet Maintenance Work Performed in the 2018-2019 Fiscal Year, and Authorizing the Payment.

BACKGROUND:

On September 11, 2018, Council approved entering into an agreement with Vector Fleet Management, LLC. (Vector) for preventative fleet maintenance and repair services in an amount for Fiscal Year 2019 of $491,500.

The Town’s contract with Vector became effective on October 1, 2018. The Town is billed for parts and labor according to a fee schedule contained in the agreement. The anticipated cost of Vector’s services during Fiscal Year 2019 was based on service data from our previous vendor. During the year, staff found the average monthly fees billed by Vector were higher than projected. Staff and Vector investigated and discovered that the previous vendor did not charge for all work being completed. This under-billing resulted in a low projection of the cost of Vector’s services. The City of Carrollton, who had the same previous vendor and now uses Vector as their fleet maintenance provider, discovered the same under-billing issue.

As a result, the preventative maintenance and repair services billed by Vector will be $60,000 more than estimated. This amount will be absorbed within the Fiscal Year 2019 budget. Staff also utilized Vector for heavy equipment maintenance that was previously performed by other vendors in the amount of $30,000. This amount was budgeted in Fiscal Year 2019, but not included in the amount appropriated for Vector. This represents $90,000 in expenditures with Vector above the $491,500 amount originally approved by the Council.

Council action is needed to approve a change order in the amount of $90,000 to Vector Fleet Management, LLC for fleet maintenance work performed in Fiscal Year 2019. No budget adjustment is needed.

RECOMMENDATION:

Administration recommends approval.

Attachments
Resolution - Change Order for Vector Fleet Management LLC