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City Council Meeting of June 20, 2006 Renewal of Vehicle Maintenance Contract with San Bernardino County Fire Department Page 2 b. If MOU salary adjustments exceed the CPI, then the yearly hourly rate adjustment will equal the MOU salary increase. The increase in hourly rate is a reflection of increased costs at the County shop due to salary and benefit agreements with the County employees. The County has been requiring the automatic annual increase in hourly rates on multi-year contracts to ensure that their costs due to employee contract negotiations are covered. Section 3.08.060 of the CMC provides that the City Council may, by majority vote, dispense with bidding upon finding that it would be impractical or uneconomical and the public welfare would be promoted by dispensing with the same. Thus, the public welfare is promoted by contracting with another public entity at rates that are substantially lower than competing entities. The new hourly rates continue to compare favorably with the rates currently charged by facilities that specialize in diesel truck and fire truck repair. Current hourly rates charged by various other repair facilities are shown below: Company Hourly Rate San Bern. County Fire Dept. $ 68.50 KME Fire Apparatus (Ontario) $ 75.00 (Aerial Repairs -$85) American La France (Ontario) $ 80.00 Valley Detroit Diesel (Ontario) $100.00 Rancho Cucamonga Fire District $110.00 FINANCIAL IMPACT: Renewal of the Vehicle Maintenance Contract with San Bernardino County Fire Department will result in a yearly increase of approximately $5,200 based on 1,025 hours of service; however, this contract continues to be less expensive than other alternatives. ENVIRONMENTAL IMPACT: None. CONLICT OF INTEREST: None. RECOMMENDATION: Staff recommends approval of the renewal of the five year Vehicle Maintenance Contract with the San Bernardino County Fire Department. Attachment: City Attorney: 1AUKIAX10 Finance Director: OTHER: