6-15-2021 AGENDA ITEM NO.14 - CONSIDERATION OF PURCHASE ORDER FOR FORD FLEET CARE BILLING PROGRAM FOR FISCAL YEAR (FY) 2021-22AGENDA ITEM NO. 14
AGENDA STAFF REPORT
City of West Covina I Office of the City Manager
DATE: June 15, 2021
TO: Mayor and City Council
FROM: David Carmany
City Manager
SUBJECT: CONSIDERATION OF PURCHASE ORDER FOR FORD FLEET CARE BILLING
PROGRAM FOR FISCAL YEAR (FY) 2021-22
RECOMMENDATION:
It is recommended that the City Council:
1. Approve, by a majority vote of the entire City Council, dispensing with formal bidding procedures and
requirements in connection with the procurement of City fleet maintenance and repair services by finding that
it would be uneconomical to comply with such requirements and it would promote the public interest to
dispense with such requirements, in accordance with the requirements of Section 2-330(b) of the West
Covina Municipal Code.
2. Approve a purchase order for the Ford Fleet Care Program for FY 2021-22.
BACKGROUND:
The Ford Fleet Care Program is a parts -and -service billing program offered to commercial fleet customers who
choose to self -manage their fleet of vehicles. A single consolidated invoice replaces multiple repair orders or part
invoices, helping to save administrative time and cost. The Ford Fleet Care program does not have enrollment,
monthly per -vehicle, or administrative fees. The program provides access to online reports, cardless/cashless
convenience, reduced administration, and allows for single monthly invoice for the entire fleet service.
This service is available for fleets of Ford, Lincoln and Mercury vehicles, as well as non -Ford vehicles and trailers
through Ford and Lincoln Dealerships and Quick Lane Tire &Auto Centers throughout the United States and
Canada.
Ford Fleet Care can repair the majority of the City's Ford and non -Ford vehicles. The City's fleet consists of
88 Ford Vehicles and 41 Non -Ford Vehicles. The majority of the City's fleet are police and maintenance department
vehicles that are currently under warranty. The City uses various Ford vendors for City fleet repairs (i.e. Puente
Hills Ford, Ed Butts Ford, Trans West Ford). In January 2017, as part of the Ford of West Covina agreement, the
City began using Ford Fleet Care, a credit line through Ford Motor Company that can be used at any Ford
dealership for parts and service. Because our City fleet consists of mostly Ford vehicles that are still covered under
manufactures warranty, the vehicles must go to an authorized Ford dealer for repair.
DISCUSSION:
In FY 2019-20, City Council approved a purchase order in the amount of $200,000, with the City spending
$195,509. For FY 2020-21, City Council approved the purchase order in the amount $200,000. As of May 26,
2021, the City has spent $155,267. The reduction in cost is due to new vehicle fleet replacements during the year.
Staff is requesting that the City Council approve a purchase order in the amount of $200,000 for FY 2021-22.
Funds are budgeted for these services under the Fleet Management account number 365.61.4170.6329; thus, no
change in appropriation is required.
Section 2-330(b) of the West Covina Municipal Code states that the City Council, by a majority vote of the entire
City Council, may dispense with the formal bidding procedures and requirements of Division 2 (Purchasing
System) of Article VII (Purchases and Sales) of Chapter 2 (Administration) of the West Covina Municipal Code
upon a finding that "it would be impracticable, useless or uneconomical ... to follow such procedures and ... the public
welfare would be promoted by dispensing with the same." Staff believes it would be uneconomical and would not
promote the public welfare to follow formal bidding requirements in connection with the procurement of these
services. Therefore, staff is recommending that the City Council, by a majority vote of the entire City Council,
approve dispensing with formal bidding requirements and procedures in connection with the procurement of City
fleet maintenance and repair services by finding that it would be uneconomical to comply with such requirements
and the public welfare would be promoted by dispensing with such requirements for the ambulance billing
services.
OPTIONS:
The City Council has the following options:
1. Adopt staff s recommendation; or
2. Provide alternative direction.
Prepared by: Renee M. G. Chavez, Accounting Technician
Fiscal Impact
FISCAL IMPACT:
Funds are budgeted for these services under the Fleet Management account number 365.61.4170.6329; thus, no
appropriation is required.
Attachments
Ford Fleet Care Agreement
CITY COUNCIL GOALS & OBJECTIVES: Achieve Fiscal Sustainability and Financial Stability
Protect Public Safety
Service Billing
Available "or Ford Motor Company vehicles as well as
non -Ford vehicles and trailers
Consolidated billing statement for vehicle repairs and
maintenance service
Cardiess/cashless solution for fleet drivers
Original Equipment (OE) parts and service at
— Ford and Lincoln Dealerships
— Quick Lane` Tire & Auto Centers in the United States
and Canada
{aver -the -Counter Parts Billing
Allows for Ford, Motorcraft'
or Omnicraft' parts to be
purchased over the counter at ==Hsouo^T-ceiwxcatwoeT j
participating Ford and Lincoln
sintheUnitedStates DealershiP """"
i o°��rcoonss I
and Canada, or at participating ; a,,,,,mm=3�z i�€
Ford Authorized Distributors of
Motorcraft parts in the United States.
This program features:
A dedicated parts account code and card
A monthly invoice fare[[ approved parts purchases
All purchases authorized by designated company
representatives
Billing of purchases made through FordParts.com
National Glass Billing*
OE glass and installation services at more than 4,000
Installer locations nationwide
• Tiered pricing available at fleetcare.ford.com
Mobile installers available for convenience
• Fast -cure adhesives for limited downtime
Carlite"SoundScreen' acoustic glass replacement that
reduceswind noise, road noise and unwanted sounds
Motorcraft,' Quick Lane=and Dmrhcraft"are trademarks
of Ford Motor Company.
"MiFleetCare" Management Tool**
A Ford Fleet Care web page with the specific information that
fleet managers ask for most, such as:
Account balance amount
A list of actively enrolled vehicles
• Daily reports for current repairs and parts purchases to track
activities between invoice periods
Maintenance reports showing the frequency and cost of
your fleet's vehicle maintenance
Expanded date range invoice information
Enhanced Roadside
Assistance Billing*
Services beyond New Vehicle Limited Warranty and Ford
Protect Extended Service Plan roadside coverage, Including:
911 emergency dispatch
On -site tire change or replacement
Emergency fuel and fluids
Jump start and lockout assistance
Towing and winching
• Call -ahead service appointment
Billing Statements
By Mail or Online
.,�.,.�._ invoice
Repair
Notification
Summary
Repair
Notification
TaK,
Ford Fleet Care Website**
fleetcare.ford.com
The Ford Fleet Care we bsite allows you to:
Download a program application
• Access the MyReetCare page, web reports and billing
statements, which are private view for fleets with a
Fleet Identification Number (FIN)
View/download multiple fleet reports, such as Fleet
Business and Repair Category reports
View/print/download service and over-the-counter
parts billing documents
• View National Glass Program information
Link to related sites to locate:
— Ford and Uncoln Dealerships
— Quick Lane -Fire & Auto Centers
— Recommended maintenance schedules
Web Reports**
Fleet
Business
Report
Repair
Category
Report
*Available onlyin the United States. In Canada, gta sSatvireandroadsrde
assistance are provided through Ford and FoWl lnmin Dealerships.
--For fleets while Fleet ldentification Number (FIN). Forin farina fun on obtaining
a AN or Ford Webio.go to fleet.ford comand cfickonContactUs rab-
.... .... ......
Cost Savings
The Ford Fleet Care Program features:
No enrollment fees
No monthly per -vehicle fees
• No administrative fees
see Ford Fleet Care Programagreementat jleetcare.ford com fordetalB.
Control
• Preset spendingCmit—repairvisisexceedingyourpreset
limit require fleet administrator's approval
(excludes Ford Warrantyand Ford Protect deductibles)
Ford Online Automated Service Information System (OASIS).
used by Ford Dealerships and Quick Lane' Tire & Auto
Centers, provides:
— Prior approval and contact information
— Key vehicle information
— Repair bulletins
—Open service recalls and customer satisfaction programs
— Ford Protect Extended Service Plan Information
Convenience
Fewer hours required to coordinate parts and service needs
Consolidatevehicte service information by VIN cryour
unit number
United States -based account representatives to assist you
with program questions or account maintenance
• 2-year/unlimited-miles Service Part Warranty, with no
commercial exceptions. Labor costs may have a limit:
see your dealer for a copy of the limited warranty
• Combine with Ford Protect Extended Service Plan component
coverage and/or maintenance and wear item coverage
Website: fleetcareJord.com
Email: ffcadmin@ford.com
Phone:1-800-367-3221
Fax:1-313-390-3555
Roadside Assistance (U.S.):1-800-241-3673
Roadside Assistance (Canada):1-800-565-3673
QR Scan Code
(For smartphonej Pad`and tablet device use.
Message and data rates may apply.)
1Pad is a registered trademark of Apple Inc. All rights reserved.
Available in the U.S. and Canada.
This brochure is intended to provide general information.
We reserve the right to make changes to the Ford Fleet Care Program
and Service Part Warranties without prior notice.
Contact Ford Fleet Care Headquarters tar details.
Ford Fleet Care
19855 W. Outer Drive, Suite 500E
Dearborn, MI 48124
4^ MR
F50-FCCPS-BRO20I7
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Dear Mr, Martinez,
( I FORDFLEETCARE
Ford Motor Company
19855 W. Outer Drive
Suite 500 E
Dearborn, MI 48124
FORD FLEET CARE ACCOUNT INFORMATION
Fleet Code: 014358/00000
Parts Billing Code: QOOOFC14358
Billing Credit Limit: $140,000.00
90 Day 10% Discount Ends April 19, 2018
Congratulations and welcome to the Ford Fleet Care Program. With your enrollment, your company is now
eligible to enjoy the benefits of consolidated billing. PLUS your company will receive a 10% discount on
parts and services billed within 90 days of program enrollment".
*10% discount will be applied for 90 days from program enrollment on services using Ford and Motorcraft
brand parts and billed through Ford Fleet Care. Discount excludes tax. Offer is valid for new account
enrollments only. This offer can't be combined with any other Ford Motor Company parts rebate or service
discount offer. Offer valid in U.S, only. Void where prohibited. Ford Motor Company reserves the right to
modify or cancel this offer without prior notice.
The program allows you the flexibility to visit a participating Ford and Lincoln Dealer or QuickLane Tire & Auto
Center nationwide, and have all invoicing pass to you in a convenient monthly bill. In addition, enrollment
includes access to a National Glass Program of over 4.000 vendors, as well as Enhanced Roadside Assistance.
Details on all of our available support programs can be found in the enclosed literature as well as on line at
www.fleetcare.ford.com.
If you haven't already made arrangements for electronic transactions, you may also want to review the
information on our Electronic Billing and the Electronic Funds Transfer payment option. It provides a safe, fast
payment method and may reduce per -transaction costs.
The Ford Fleet Care website is available to help you manage your account. Detailed business reports are
available for accounts with a Ford Fleet Identification Number (FIN) and secure web single logon (WSL) ID. To
review FIN requirements, or to apply, please select contact us at www.fleetcare.ford.com. You can use these
reports for tracking and maintaining a history of your vehicle service repairs or parts purchases.
Program terms are outlined in the enclosed Ford Fleet Care Agreement Provisions. Please note service fees
are applied to late payments, and disputes need to be submitted in writing within 30 days. Guidelines on
disputing billing charges to your account can be viewed online; please refer to th& agreement provisions or to
"Billing Disputes - Frequently Asked Questions" at the information tab of the www.fleetcare.ford.com site.
Ford Fleet Care is committed to sustaining your vehicle support needs. If you have any questions you can
reach us at Ford Fleet Program Headquarters Monday — Friday, 8 30 am — 5,00 pm EST by dialing
800-367-3221 or by emailing us at ffoadmin@ford.com.
Don't delay, start saving 10% today!
Ford Fleet Program Headquarters
FL 70A
08/17/2016
Ford Fleet Care Program Agreement
DEFINITION OF FORD MOTOR COMPANY ("FORD") FORD FLEET CARE CONSOLIDATED BILLING AND PARTS PURCHASE PROGRAM. Acceptance into the Ford
Fleet Care Consolidated Billing and Parts Purchase Programs is at the sole discretion of Ford. Additional information (such as corporate, vender or state forms) may be
required prior to enrollment. Upon acceptance into the Ford Fleet Care Consolidated Billing Program or Ford Fleet Care Parts Purchase Program, Ford will establish a
billing account and pay participating Ford or Lincoln dealerships, Quick Lane Tire & Auto Centers or any Ford authorized program service provider in the USA or Ford and
Ford -Lincoln dealerships or Quick Lane Tire & Auto Centres in Canada (collectively referred to as "Ford Fleet Care Service Providers") for repair, maintenance service, parts
or accessories, Ford Protect Extended Service Plans, Rotunda shop equipment, or Ford Fleet Training purchases on behalf of the approved fleet company ("Fleet
Company") in accordance with the Ford Fleet Care Program Agreement provisions set out herein.
WHERE TO GO FOR SERVICE OR PARTS PURCHASES. All Ford Fleet Care Service Providers can perform repairs or maintenance services under the terms of the Ford
Fleet Care Consolidated Billing Program. Parts may be purchased under the terms of the Ford Fleet Care Parts Purchase Program from all participating Ford or Lincoln
dealerships in the USA or Ford and Ford -Lincoln dealerships in Canada. Certain parts or services may not be available for non -Ford vehicles. Motorcraft brand parts and
fluids may be available from participating Ford Authorized Distributors.
ELIGIBILITY AND AGREEMENT PERIOD. Eligibility for the Ford Fleet Care Consolidated Billing Program is in effect from the issue date of the Ford Fleet Care Program
acceptance letter, and is valid for the duration of the fleet company's enrollment in the Program. Eligibility for the Ford Fleet Care Parts Purchase Program is in effect from
the issue date of the Parts Purchase membership card and is valid for the duration of the Fleet Company's enrollment in the Ford Fleet Care Parts Purchase Program.
Enrollment for both programs is renewed annually with then current provisions, unless notified and agreed tootherwise. Ford Fleet Care billing services may not be used
for non- Ford vehicle components and/or operating systems on vehicles not owned, leased and operated by the approved fleet company, including Ford Qualified Vehicle
Modifiers.
PROGRAM CREDIT LIMIT AND MAXIMUM AUTHORIZED REPAIRAMOUNT.
Credit Limit: A maximum credit limit will be established forthe Fleet Company based on a credit history evaluation and vehicle enrollment. Credit limits may be adjusted
(increased/decreased) based on program activity and vehicles enrolled. Services or purchases that exceed the Fleet Company's credit limit may result in suspension of
Ford Fleet Care billing privileges. As a result, additional services or purchases may be denied until payment has been made. Requests for credit limit increase may be sent
in writing to Ford Fleet Care Administration at the correspondence address identified below.
Ford Fleet Care Consolidated Billing Program: Should the total cost of repairs exceed the authorized limit, the Ford Fleet Care Service Provider will contact the Fleet
Company for authorization, which shall be evidenced by the issuance of a purchase order or approval number, prior to proceeding with the repair. The authorization
limit is set by the Fleet Company at the time of enrollment as Repair Prior Approval and generally will not exceed$500.00. The authorization limit may be modified
at Ford's sole discretion by submission of a written request to the correspondence address below at a later date. Repairs that are less than the authorization limit are
deemed to be authorized repairs. The Fleet Company is responsible for payment of all authorized repairs.
Ford Fleet Care Parts Purchase Program: All parts purchases shall require authorization for purchase from the Fleet Company, which shall be evidenced by the
issuance of a purchase order or approval number. The Fleet Company is responsible for payment on all authorized parts purchases.
FORD FLEET CARE NATIONAL PROGRAMS. Ford Fleet Care may offer national programs as part of the Consolidated Billing program, such as Glass and Roadside programs
(available only in the U.S.). The Fleet Company is automatically enrolled in Ford Fleet Care national programs as they become available. Services provided under the Ford
Fleet Care national programs do not require prior approval from the Fleet Company, even if the charges exceed the established maximum authorized repair amount.
Additional information is available at www.fleetcare.ford.com.
ACCOUNT RESPONSIBILITIES FOR SERVICE AND MAINTENANCE OR PARTS PURCHASES. The Fleet Company is responsible for ensuring that: (1) Tax Exempt
information, if applicable, is provided at time of service or purchase. (2) The requested work has been completed or the required part(s) have been received, (3)
The repair or purchase order contains the correct name, VIN or account code, odometer reading and repair or purchase date and (4) The repair or purchase order is
signed and dated or otherwise documented and a copy is retained for the Fleet Company's records. (5) VIN enrollment is accurate and additions and deletions are required
in a timely basis. Failure to do so may result in charges on vehicles no longer owned or operated by the fleet.
STATEMENT OF ACCOUNT, INVOICE AND SUMMARY. Each billing period, Ford will post online or send the Fleet Company a summary and detail of individual
charges, an invoice tallying monthly charges and a statement of account that includes billing and payment activity from the previous billing period. Online billing
documents are available at www.fleetcare.ford.com. Documents without billing charges are not posted online or sent to the Fleet Company.
FOREIGN EXCHANGE. USA/Canadian currency exchange will be calculated based on the Ford bookkeeping rate at the time of the repair or parts purchase, as the
case may be, with no service fees charged.
CHARGES AND FEES. Ford will bill the fleet company for their authorized repairs and services (including Prior Approval repair values) not covered by the New Vehicle
Limited Warranty, Ford Protect Extended Service Plan (ESP), or other Ford program, and for parts and products purchased using an assigned Ford Fleet Care billing account
number. Approved deviations from the standard services outlined in this agreement may result in additional charges to the Fleet Company's account. Service requests
that may cause additional charges may include, but are not limited to: Requests for customized data reports, billing reprint requests, alternative billing services (i.e. EDI,
third party billing services) or express mailing of billing documentation. Additionally, approved payment terms extended beyond net thirty days may result in additional
charges.
Page 3 Revision Date: 11/26/2019 FSOFFCUS-19
PAYMENT. The Fleet Company shall pay Ford the amount stated on the invoice by the specified due date. At Ford's sole discretion, existing credit on account may be
applied to subsequent billing, thereby reducing the amount owed. This will be reflected on the Fleet Company's statement of account, which is provided with the current
billing period's invoice. In the event of nonpayment in whole or in part, Ford reserves the right to suspend or cancel Ford Fleet Care billing privileges upon written notice
to the Fleet Company. Ford reserves the right to seek payment by any legal means it deems appropriate, including the right to offset against and redirect payments of any
amounts otherwise payable to the Fleet Company by Ford (e.g. Competitive Price Allowance (CPA), Government Price Concession (GPC), etc.). Delinquent payment may
be reported to national credit bureaus.
LATE PAYMENT FEE. Charges not disputed in writing or not paid in full by the specified invoice due date will be subject to a late fee at the standard rate of 4%, calculated
and compounded monthly from the invoice due date until payment is received in full. Disputed charges will be exempt from the monthly service fee provided payment is
made within 30 days from the time the dispute is resolved. The Fleet Company will be responsible for late fees incurred on delinquent invoices as a result of a failure to
identify vendor approval steps or documentation required to facilitate payment. Additionally, approved payment terms extended beyond net thirty days may incur a
late payment fee higher than the standard rate.
DISPUTED CHARGES. The Fleet Company MUST submit in writing inquiries and applicable copies of disputed charges within 30 days of the date of the invoice. Charges not
disputed within 30 days of the date of invoice will become the responsibility of the Fleet Company. Disputed charges must include the Fleet Company name and account
number, the dollar amount being disputed, and a description of the dispute and any supporting documentation. Submitting disputed invoices immediately may help in
avoiding interruption of Ford Fleet Care service. Ford Fleet Care is a billing service only, so Ford will only correct errors made by Ford. Ford shall not be responsible for any
misrepresentation of the Ford Fleet Care program and its features by a Ford Fleet Care Service Provider, any claims that work was not actually provided by the Ford Fleet
Care Service Provider, or that the Ford Fleet Care Service Provider inaccurately or improperly performed the work. The Fleet Company should contact the Ford Fleet Care
Service Provider directly to resolve these types of disputes. Ford makes no warranty or representation regarding the work performed by the Ford Fleet Care Service
Providers or the parts and services provided by the Ford Fleet Care Service Providers, except to the extent that any purchased parts or accessories may be subject to an
express Ford product warranty.
TO CANCEL FORD FLEET CARE ENROLLMENT. The Fleet company MUST notify Ford's Ford Fleet Care Administration in writing as soon as: (1) An enrolled vehicle is taken
out of service, (2) Ford Fleet Care is no longer desired on a vehicle, or, (3) the Consolidated Billing or Parts Purchase account is no longer desired. The request must
include the Fleet Company account code and specific VIN information if applicable. The enrollment cancellation process generally takes 10 business days from Ford's
receipt of the request. The Fleet Company will be charged and responsible for all repairs performed on vehicles and/or parts purchases until Ford Fleet Care Administration
completes the cancellation process. To avoid being charged, the Fleet Company should instruct drivers to refrain from receiving service or purchasing parts through Ford
Fleet Care while the enrollment cancellation is in process. Confirmation of enrollment cancellation will be provided to the Fleet Company upon completion.
TERMINATION AND CHANGES TO FORD FLEET CARE PROGRAM AGREEMENT. In addition to any other termination rights specified herein, Ford shall have the right
to terminate the Ford Fleet Care Program Agreement with the fleet company at any time, with or without cause, upon providing thirty (30) days prior written notice to
the fleet company. Additionally, Ford shall have the right to change the Program Agreement at any time and such changes shall be effective upon Ford providing thirty
(30) days prior written notice to the fleet company.
CORRESPONDENCE. Please direct all inquiries to Ford Fleet Care Headquarters as follows
Phone:
(800) 367-3221
Fax:
(313)390-3555
Email:
ffcadmin@ford.com
Mail:
19855 W. Outer Drive Suite #500
Garrison Place East
Dearborn, MI 48124
Ford's full privacy policy is available at www.fleetcare.ford.com for review.
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September 2017 FC8-11666.1