AGENDA ITEM NO. 8.10 CITY OF ELK GROVE CITY COUNCIL STAFF REPORT AGENDA TITLE: Adopt resolution dispensing with the formal bidding requirements per Elk Grove Municipal Code Section 3.42.188(B)(3) and authorizing the City Manager to execute a contract amendment to contract C-15-077 with FASTER for Fleet software maintenance services, extending the contract for three years with an optional two year extension and authorizing an additional expenditure of funds not-toexceed $43,000 [for a total expenditure of funds over the term of the contract not-toexceed $180,000] MEETING DATE: March 22, 2017 PREPARED BY: DEPARTMENT HEAD: Douglas Scott, Facilities and Fleet Manager Brad Koehn, Director of Finance and Administrative Services RECOMMENDED ACTION: Staff recommends that the City Council adopt a resolution dispensing with the formal bidding requirements per Elk Grove Municipal Code Section 3.42.188(B)(3) and authorizing the City Manager to execute a contract amendment with FASTER for Fleet software maintenance services, extending the contract for three years with an optional two year extension, and authorizing an additional expenditure of funds not-to-exceed $43,000 [for a total expenditure of funds over the term of the contract not-to-exceed $180,000]. BACKGROUND INFORMATION: In 2005, the City of Elk Grove conducted a Request for Quotations (RFQ) for Fleet Maintenance Software for tracking of the City s vehicle fleet 1
Elk Grove City Council March 22, 2017 Page 2 of 2 including requirements for acquisition, preventative maintenance, repair, fueling, depreciation and disposal. Contract C-06-125 was issued to CCG Systems, Inc. for FASTER Fleet Management Software. In April 2012, Council approved the first contract amendment C-12-129, and in April 2015, the City Manager issued the second contract amendment C-15-077. Although the City s current enterprise software provider, ONESolution, does provide minimal fleet tracking software, it does not currently meet all of the needed features required by Fleet Services, most importantly an interface with the City s vehicle fueling software. Over the last eleven years, FASTER has provided exceptional service. Its software has proven to be reliable and accurate, allowing the City to comprehensively track vehicle maintenance and fueling. FASTER has also provided software upgrades as part of the maintenance service, ensuring its software is current and utilizing the latest tools and technology. FASTER has been responsive to any issue that has arisen and has provided quick turnaround in solving those issues. Particularly, given FASTER s good service to the City, it is staff s opinion that it is more economically feasible to contract with FASTER for continued maintenance services for the existing software then it is to bid out to a new Fleet Services Tracking System, Software. Therefore, staff requests that the City Council find that formal bidding of this purchase is not in the best interests of the City and dispense with the formal bid requirements pursuant to Elk Grove Municipal Code Section 3.42.188(B)(3), and further authorize a renewal of the current contract with CCG Systems, Inc. as described in this report. FISCAL IMPACT: This contract provides for cost escalations for future years. These costs have been programmed into Fleet Services 2017-18 operating budget and will be included is subsequent budgets for the duration of the contract. ATTACHMENTS: 1. Resolution 2. Contract Amendment 2
ATTACHMENT 1 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ELK GROVE DISPENSING WITH THE FORMAL BIDDING REQUIREMENTS PER ELK GROVE MUNICIPAL CODE SECTION 3.42.188(B)(3) AND AUTHORIZING THE CITY MANAGER TO EXECUTE A CONTRACT AMENDMENT WITH CCG SYSTEMS, INC., FOR FASTER FLEET MAINTENANCE SOFTWARE SERVICES, EXTENDING THE CONTRACT FOR THREE YEARS WITH AN OPTIONAL TWO YEAR EXTENSION AND AUTHORIZING AN ADDITIONAL EXPENDITURE OF FUNDS NOT-TO-EXCEED $43,000 FOR A TOTAL EXPENDITIURE OF FUNDS OVER THE TERM OF THE CONTRACT NOT-TO-EXCEED $180,000 WHEREAS, the City of Elk Grove s Fleet division maintains City vehicles including mechanical, structural and aesthetic standards; and WHEREAS, a software database is required to accurately track expenditures such as acquisition, preventative maintenance, repair, fueling, depreciation and disposal; and WHEREAS, in October of 2005 the City conducted a request for quotations consistent with the City s competitive bid requirements, as then existing; and WHEREAS, CCG Systems, Inc. s FASTER Fleet Software met all of the criteria in the 2005 request for quotation, was determined to be the lowest responsive, responsible bidder to the City, and was awarded contract C-06-125; and WHEREAS, in April of 2012, Council approved the first contract amendment C- 12-129 and in April of 2015, the City Manager issued the second contract amendment C-15-077; and WHEREAS, for the reasons presented, pursuing formal competitive bidding for the proposed software is not in the best interest of the City; and WHEREAS, this contract provides for cost escalations for future years. These costs have been programmed into Fleet Services 2017-18 operating budget and will be included is subsequent budgets for the duration of the contract. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Elk Grove hereby determines that formal competitive bidding is not in the best interest of the City for the subject Fleet Management software and hereby dispenses with the formal bid requirements pursuant to Elk Grove Municipal Code Section 3.42.188(B)(3); and. BE IT FURTHER RESOLVED that the City Council of the City of Elk Grove authorizes the City Manager to execute a contract amendment to contract C-15-077 with CCG Systems, Inc. for FASTER Fleet Software services in substantially the form attached for an additional three years with an optional two-year extension, and authorizing an additional expenditure of funds not-to-exceed $43,000 [for a total expenditure of funds over the term of the contract not-to-exceed $180,000]. 3
PASSED AND ADOPTED by the City Council of the City of Elk Grove this 22 nd day of March 2017. STEVE LY, MAYOR of the CITY OF ELK GROVE ATTEST: APPROVED AS TO FORM: JASON LINDGREN, CITY CLERK JONATHAN P. HOBBS, CITY ATTORNEY 4
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