Report Prepared by: Wally Broughton, Public Works Manager-Operations
Title
SUBJECT: Approval to Accept Future Reimbursement from McLaren’s Insurance for a Destroyed Police Motorcycle, Approval of an Appropriation in the Amount of $29,368.83 to Fund 674 - Vehicle Replacement, and Award of Bid to Herwaldt Motorsports for the Purchase of Three Police Motorcycles for the Police Department Traffic Division in the Amount of $29,368.83 Each
REPORT IN BRIEF
Considers awarding the bid to Herwaldt Motorsports for the purchase of two motorcycles as replacements, as well as, purchasing one as a replacement for a destroyed motorcycle, for the Police Department Traffic Division and future acceptance of insurance reimbursement from McLaren’s Insurance for the destroyed motorcycle.
RECOMMENDATION
City Council - Adopt a motion:
A. Accepting insurance reimbursement and increasing revenue in the amount up to $29,369 (estimate) from McLaren’s Insurance in Fund 674 - Fleet Capital Replacement; and,
B. Approving a supplemental appropriation in the amount of $29,369 to Fund 674 - Fleet Capital Replacement to purchase the replacement of the destroyed motorcycle; and,
C. Awarding the bid to Herwaldt Motorsports for the supply of three new motorcycles in the amount of 29,368.83 each; and,
D. Authorizing the City Manager or Deputy City Manager to execute the necessary documents, the City Buyer to issue the Purchase Order, and to approve change orders not to exceed 10% of the total purchase price.
Body
ALTERNATIVES
1. Approve, as recommended by staff; or,
2. Approve, subject to conditions other than recommended by staff (identify specific findings and/or conditions amended to be addressed in the motion); or,
3. Deny; or,
4. Refer to staff for reconsideration of specific items (specific items to be addressed in the motion); or,
5. Continue to a future meeting (date and time to be specified in the motion).
AUTHORITY
Charter of the City of Merced, Article XI, Section 1111-Competitive bidding, and Merced Municipal Code Chapter 3.04, Article III - the purchase of materials, supplies, equipment, and contractual services of an estimated value greater than thirty-four thousand dollars ($34,000.00), the "contract threshold," shall be made by the purchasing supervisor by written contract with the lowest responsible bidder.
CITY COUNCIL PRIORITIES
As provided for in the FY 21/22 Adopted Budget.
DISCUSSION
Staff prepared bid specifications for new police patrol/road touring motorcycles and the invitation for bids was advertised both in the Merced County Times newspaper and the City’s website. Bids were publicly opened on October 21, 2021 at 2:30 p.m., with the following results:
Herwaldt Motorsports $29,368.83 each
Long Beach BMW Motorcycle $29,665.31 each
Fleet Services is requesting approval from Council to appropriate $29,369 to purchase one new motorcycle in the amount of $29,368.83. This purchase is necessary to replace a motorcycle that sustained damages in a multi-vehicle accident with repair costs that exceeded the value of the motorcycle, thus rendering it a total loss. Per the insurance stipulations, the reimbursement will be processed after the City has purchased the vehicle. The insurance reimbursement amount is estimated to be $29,368.83 and will be credited back to Fund 674 - Fleet Capital Replacement. If the full amount of $29,368.83 is not reimbursed by McLaren’s Insurance, the cost difference will be covered by the unreserved, designated Fund Balance in Fund 674 - Fleet Capital Replacement.
Staff recommends awarding the bid for the purchase of the motorcycles to Herwaldt Motorsports in the amount of $29,368.83 per unit.
IMPACT ON CITY RESOURCES
No budget appropriation is needed for two replacement motorcycles because they are on the replacement list for FY21-22. The third motorcycle is being purchased with $29,368.83 reimbursement from McLaren’s Insurance and it is an estimated amount. If the actual reimbursement from McLaren’s Insurance is less than the $29,368.83, the difference will be covered by the unreserved, designated Fund Balance in Fund 674 - Fleet Capital.
ATTACHMENTS
1. Herwaldt Motorsports Bid