Title
Resolution to Amend Purchasing Authorization for FY24 and FY25 with MacQueen Equipment, LLC of Lake Orion, Michigan, for Repair Parts and Services ($135,000.00 Annually)
Memorandum
On June 20, 2023, City Council approved Resolution R-23-221 which authorized issuance of a sole source purchase order in an amount not to exceed $110,000.00 annually for FY24 and FY25. For FY24, the City issued purchase order #2024-0013 in the amount of $110,000.00 to MacQueen Equipment for replacement parts and repair services to the City’s fleet of vehicles. As a result of higher than average repair needs and higher costs for repair parts, additional funds will need to be added to the purchase order. MacQueen Equipment is the sole local dealer for parts and service for Elgin, which is the manufacturer for the City’s street sweepers, and Heil, which is the manufacturer for some of the City’s Solid Waste assets.
Additional funds in the amount of $25,000.00 are requested, bringing the amended FY24 purchase order total to $135,000.00. Staff requests that the authorization amount be increased from $110,000.00 to $135,000.00 for FY25 as well. With higher costs for repair parts and aging assets that require more repairs, we anticipate similar issues for FY25.
Budget/Fiscal Impact: Funding for this increase is available in the FY24 Fleet Services Fund Operations and Maintenance Budget and the approved FY25 Fleet Services Fund Operations and Maintenance Budget.
MacQueen Equipment complies with the City’s Conflict of Interest and Non-Discrimination ordinance requirements.
Staff
Prepared by: CJ Stegink, Fleet Supervisor
Matthew J. Kulhanek, Fleet and Facilities Unit Manager
Reviewed by: John Fournier, Deputy City Administrator
Approved by: Milton Dohoney Jr., City Administrator
Body
Whereas, The City approved purchase authorization with MacQueen Equipment in the amount of $110,000.00 annually for repair parts and services for FY2024 and FY2025, with FY2025 being subject to availability of funds;
Whereas, As a result of higher than normal repairs and higher parts costs due to inflation, this amount will be insufficient to address the needs of the City’s fleet for the remainder of FY2024 and FY2025;
Whereas, An additional purchase authorization amount of $25,000.00 annually is needed to address these issues;
Whereas, MacQueen Equipment complies with the City’s Conflict of Interest and Non-Discrimination ordinance requirements; and
Whereas, Adequate funding for the increased purchase authorization is available in both the approved FY2024 and FY2025 Fleet Services Fund Operations and Maintenance Budgets;
RESOLVED, That the City Council approve the amended purchase authorization for MacQueen Equipment, increasing the amount by $25,000.00 to an amended total of $135,000.00 annually; and
RESOLVED, That the City Administrator be authorized to take all necessary actions to implement this resolution.