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SR 07-26-2011 3Fc7® City of Santa Monica City Council Report City Council Meeting: July 26, 2011 Agenda Item: 3F To: Mayor and City Council From: Stephanie Negriff, Director of Transit Services Subject: Purchase of Non-Hazardous Water Based Cleaning Solution and Recycle Used Solution Recommended Action Staff recommends that City Council authorize the City Manager to amend Purchase Order No. 17379 with IPAX of California, Inc., aCalifornia-based company, for the purchase and delivery of non-hazardous cleaning solution and to recycle used solution in the amount of $51,208 in Fiscal Year 2010-11. The total purchase order will be $149,543. Executive Summary The Big Blue Bus uses anon-hazardous water-based (aqueous) cleaning solution to clean transit coach engine compartments and undercarriages. It is also used in seven large parts cleaning machines and as a cleaning solution on floors in the maintenance and fuel and wash facility. Because of the extensive use of the cleaning solution, in Fiscal Year 2010-11, the Big Blue Bus exceeded available funds in purchase order 17379-OF by $51,208. Background In FY 2010-11, the Big Blue Bus established Purchase Order No. 17379-OF based on an informal bid process posted on Planet Bids with IPAX of California, Inc: to purchase and deliver non-hazardous cleaning solution and to recycle used solution. The purchase order was established for $98,335. The estimated expenditure was based on past years' usage. However, usage of the cleaning solution has increased due to the new larger maintenance facility and the larger parts cleaning-that came with it. 1 Discussion Big Blue Bus transit coaches require Preventive Maintenance Inspections (PMI) every 6,000 miles. Part of the PMI involves extensive cleaning of the engine compartment and undercarriage with a power washer that dispenses the aqueous cleaning solution purchased from IPAX of California, Inc. The cleaning solution is also used in seven large. parts cleaners that are located throughout the maintenance facility for mechanics to use when performing component overhauls and repairs. The same cleaning solution is also used to clean the floors in the new maintenance facility. As a result of the increased cleaning surfaces of the new maintenance facility and the new larger parts washers, in the latter part of FY 2010-11, expenditure for the cleaning solution exceeded Purchase Order 17379-OF by $51,208. The new total purchase order will be $149,543 which exceeds the $100,000 threshold required for Council's approval. Although the City's fiscal year officially ended on June 30, 2011, the City's fiscal year- end processing will still allow payment of invoices for FY 2010-11. In FY 2011-12 BBB staff and Purchasing Division will conduct a formal competitive bid process for future purchases. Financial Impacts & Budget Actions The total expenditure to pay for invoices currently due to IPAX of California, Inc. is $51,208. There are sufficient funds within the Big Blue Bus FY 2010-11 operating budget to pay for this expenditure that will be paid from account 41651.544193. All funds used for this purchase come from funding sources specifically dedicated for transit uses. Prepared by: Ralph Merced, Transit Maintenance Manager Approved: Forwarded to Council: /per ~ ~ ~~ St han a Negriff Rod Gould ~ctor of Transit Services City Manager 2