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SR-6D (50) PURCH PW.ML sd f \finance\purch\strfrpts\srbdunlts 60 Council Meeting November 25, 1997 Santa Monica, California NOV 2 5 1997 TO Mayor and City Council FROM City Staff SUBJECT Recommendation to Award a Purchase Order to Williams Scotsman, Inc for the Purchase of Two (2) Modular Office Units for Solid Waste Management and Beach Maintenance Introduction This report recommends the purchase of two (2) modular office Units from Williams Scotsman Inc, In the total amount of $105,271 00, including applicable sales tax Backaround One of the two modular units (60. x 24') will provide office space for Solid Waste Management DIvIsion staff located at the City Yards Due to the reorganization of the Solid Waste DIvIsion, approved by Council In 1996, additional space IS needed With a City Yards master planning process underway, modular Units are the most cost-effective means of meeting space needs, pending adoption of the plan and construction of permanent quarters This unit will cost $63,559 DO, mcludlng applicable sales tax The second modular office Unit (60' x 12') will prOVide office and lunchroom space for staff located at the Beach Maintenance facIlity Current use of a vehicle storage bay as lunchroom space does not meet safe work standards The new Unit would also replace a NOV 2 5 1997 - 1 - 60 "I -~ small modular office which does not have seismiC restraints Th IS u nit will cost $41,712 DO, including apllcable sales tax Staff had originally mailed Informal requests for quotations In accordance with City Charter and MUnicipal Code to four (4) vendors for a five (5) year lease/purchase of these two (2) modular office Units Only one (1) quotation was received from Williams Scotsman Inc The other vendors stated that they were unable to offer quotations at thIS time due to the high volume orders they have received from school dlstncts for classroom size reduction purposes Staff's calculation determined that It was more cost effective to purchase these umts rather than lease The total lease amount IS $22,65456 per year for five (5) years ($113,272 80) versus the total purchase amount of $105,271 00 BudaetlFlnanclallmoact - - The following new capital Improvement project (CI P) appropriations will be needed to finance purchase of the (2) modular office Units: Purchase of Modular Office Units 27-710-441-20098-8900-99950 $63,559 00 Purchase of Modular Office Umts 11-710-521-20098-8900-99950 $41,71200 Sufficient balances are available In Solid Waste Management (27) Fund and Beach Recreation (11) Fund for these new appropnatlons -2- RecommendatIon It IS recommended that the award be made to Williams Scotsman Inc for the purchase of two (2) modular office units In the total amount of $105,271 00, Includmg applicable sales tax Prepared By: Pam Wortham, Purchasing Agent Margarita Lee, Buyer - 3 - - - --- - - ------- ----- --