SR 10-25-2011 3DID
City of City Council Report
Santa Mouiea
City Council Meeting: October 25, 2011
Agenda Item: s 0
To: Mayor and City Council
From: Gigi Decavalles- Hughes, Acting Director of Finance
Subject: Purchase of Three Street Sweepers
Recommended Action
Staff recommends that the City Council award a purchase order to Mar -Co Equipment
Company, a California based company, for the purchase and delivery of three new and
unused street sweepers in the amount of $889,655.
Executive Summary
In accordance with the City's Vehicle Replacement Program, three street sweepers
currently being used by the Resource Recovery and Recycling division are due for
replacement in the near future. Staff recommends that a purchase order be issued to
Mar -Co Equipment to furnish and deliver three new and unused street sweepers in the
amount of $889,655. The sweepers will be used by Resource Recovery and Recycling
personnel to clean and sweep streets throughout the City.
Discussion
The proposed street sweepers will be used by Resource Recovery and Recycling
division personnel to clean and sweep streets throughout the City and will replace units
that are scheduled for replacement in fiscal year 2014 but have reached the end of their
useful life. Maintenance costs on these sweepers are excessive and funds are
available in the replacement fund to replace them now. Replacing these units now
would offer substantial cost savings on maintenance by virtue of the new vehicles being
under warranty. In FY 2010 -11, the maintenance cost of these sweepers averaged
about $89,000 each.
As referenced in the Information Item that was submitted to the City.Council on January
15, 2008, two of the goals of the Reduced - Emissions Fuels Policy for Vehicle
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Purchases are to reduce emissions and to reduce the use of petroleum fuels. The
purchase of three CNG, low emission street sweepers will contribute to these goals.
Vendor Selection
Section 2.24.080 (b) of the Municipal Code allows exception to competitive bid
procedures when such competitive bid procedures have already been utilized, such as
in purchasing from Federal, State, County, City or special district government agencies,
or from cooperative purchasing agencies consisting of such agencies.
Mar -Co Equipment Company has offered to sell the street sweepers at the same prices
that they offered to the City of Anaheim in competitive Bid #7510. These street
sweepers are of the same year model chassis as those in the current fleet and this
consistency helps reduce training, downtime and parts inventory. The production period
of these chassis is generally four to six months after the order is placed but since these
chassis have already been produced, the units can be delivered relatively quickly.
Replacing the sweepers that cost the City on average $89,000 last fiscal year in
maintenance and repair would not only allow the City to purchase sweepers with the
same chassis but would result in substantial cost savings.
Mar -Co Equipment Company has based the pricing for Santa Monica's street sweepers
on City of Anaheim competitive Bid #7510. In April 2011, the City of Anaheim issued a
Notice Inviting Bids to furnish and deliver street sweepers. The bid was posted on the
internet in accordance with the City of Anaheim's Council Policy 4.0 (see Attachment A).
Four bid responses were received and evaluated by City of Anaheim staff per
Attachment B. Responses were evaluated based on competitive pricing and ability to
meet specifications. Based on these criteria, Mar -Co Equipment Company was
awarded this bid. On June 14, 2011, the City Council of the City of Anaheim approved
fleet vehicle purchases for FY 2011 -12.
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Financial Impacts & Budget Actions
The purchase order amount to be awarded to Mar -Co Equipment Company is
$889,655. Funds are available in the Fleet Vehicle Replacement Program Account
0540167.589200.
Prepared by: Kimberlie Nimori, Acting Purchasing Agent
Approved: Forwarded to Council:
igi D cavall g es Rod Gould
Acting Director o inance City Manager
Attachments: Attachment A —City of Anaheim's Council Policy 4.0
Attachment B — Bid Responses to the City of Anaheim Bid #7510
E,
ATTACHMENT A
City of Anaheim COUNCIL POLICY
Subject: Purchasing Procedures Policy #
4.0
Adopted Date:
08/08/78
Amended:
06/08/88
04/20/04
06/05/07
11/09/10
Page (1) of (4)
Pursuant to Section 1206 of the City Charter and Sections 1.04.260 and 1.04.270 of the
Anaheim Municipal Code, the City Council hereby adopts the following rules and
regulations governing the contracting for, purchasing, storing, and distribution of supplies,
materials, equipment, and services. The term `contracts," as used herein, shall include
purchase orders. The term "bids" shall include proposals.
76899
1. Contracts under $5,000 shall be made in accordance with procedures, as
authorized by the City Manager and implemented by the Purchasing Agent of the
City of Anaheim, unless a different procedure is established by the City Council
or the City Council expressly approves such contract.
2. Contracts in excess of $5,000 but not more than $20,000, shall be made in the
manner set forth in Section 1.04.270 of the Anaheim Municipal Code.
3. Contracts in excess of $20,000 shall be made as follows:
A. Notice inviting bids shall be published on the Internet. Bid results will be
posted on the City's website. This requirement may be waived at any time by
the City Council at its sole and absolute discretion by a duly adopted motion
of the City Council.
B. In the event a published notice, as described in paragraph 3A, is waived by the
City Council, the Purchasing Agent shall solicit at least three sealed bids
except as provided in paragraph 31).
C. Sealed bids may be received in paper copy or secured electronic format at the
discretion of the Purchasing Agent.
D. Should a City department desire to restrict the bids to specified sources, or to
limit the purchase to a single source, justification therefore shall be presented
to the City Council for approval at the time of, or at any time prior to,
approval of the contract by the City Council.
Page 1 of 4
ATTACHMENT A
City of Anaheim COUNCIL POLICY
Subject: Purchasing Procedures Policy # 4.0
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of
E. The Purchasing Agent shall publicly open the bids at a time and place set forth
in the published notice or solicitation.
F. Except for those contracts specified in Paragraph 3G, award and contract shall
be made to the lowest responsible bidder who has submitted a responsive bid.
G. Bids solicited for any contract for which the criteria for evaluation and award,
as specified in any of the bid documents, is not based solely upon monetary
costs, shall be evaluated in accordance with the criteria, as set forth in the bid
documents. The City may exercise its absolute discretion in awarding any
such contract.
H. For contracts not exceeding $250,000 in value (not including the value of any
renewal, extension or renewal options), the Purchasing Agent is authorized to
execute the contract and to bind the City without previous approval of the City
Council, pursuant to Section 1.04.260 of the Anaheim Municipal Code.
I. For contracts that include renewal or extension options, if the total
compensation payable by the City during each renewal or extension period
does not exceed $250,000, the Purchasing Agent may execute the agreement.
If the total compensation payable by the City during any renewal or extension
period will or can exceed $250,000, the Purchasing Agent will schedule the
matter for City Council approval pursuant to A.R. 120.
J. For contracts in excess of $250,000 in value, following the review and
evaluation of the bids, the Purchasing Agent shall present a recommendation
to the City Council for the award of the contract.
K. Any bid which does not conform to the minimum specifications or criteria
established by the Purchasing Agent may be considered non - responsive.
L. The City Council may, at its sole discretion, waive any irregularities in the
bids or proposals to the extent otherwise permitted by law.
M. The Purchasing Agent is authorized to execute Change Orders increasing a
contract to a dollar value up to 10% more than the original bid value without
rebidding when: (i) additional product or services of a like nature that were
not foreseen by the using department at the time of bid are required by the
City; (ii) budget appropriations are available; and (iii) in the professional
opinion of the Purchasing Agent, it is in the City's best interest to do so.
Page 2 of 4
ATTACHMENT A
City of Anaheim COUNCIL POLICY
Subject: Purchasing Procedures I Policy # 4.0
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of
4. Local Bidder Preference:
In determining the lowest responsible bidder, the bid of any suppliers located
within the City of Anaheim shall be credited with a one percent discount from the
bid amount for the portion thereof which is subject to sales tax to the extent the
City will receive a return of such tax amount.
5. Special Circumstances Requiring City Council Approval:
For procurements over $20,000, if the Purchasing Agent finds it impractical,
undesirable, or otherwise not in the City's best interest to request competitive bids
for any specific procurement or to bid the same without Internet publication, the
award recommendation and the reasons for waiving bidding or publication
requirements shall be brought to Council for approval prior to executing the
purchase order or service agreement.
6. Applicability of Policy:
The provisions of this policy shall not apply to:
A. Any contract governed by and subject to the requirements of Section 1211
of the Charter of the City of Anaheim.
B. Any contract for legal or other professional services, or for services as
governed by the provisions of City Council Policy 4.1.
C. The procurement of supplies, materials, equipment or services for which
the Purchasing Agent is not responsible, as described in Section 1.04.3 10
of the Anaheim Municipal Code.
D. Any contract made on behalf of the City by the City Manager, pursuant to
the authority set forth in Section 518 of the Charter of the City of
Anaheim.
Page 3 of 4
/_1%WCdyMh414ki I /_1
City of Anaheim COUNCIL POLICY
Subject: Purchasing Procedures Policy # 4.0
of
E. Any contract as to which the provisions of this policy have been waived at
any time prior to the award of the contract by a duly adopted motion of the
City Council.
F. Any contract awarded by the Purchasing Agent using pre - established
cooperative purchasing agreements, or a pre - existing contract of another
government agency, when such agreements or contracts resulted from
competitive bids that would meet the bidding requirements of City
purchasing regulations. Such agreements or contracts may be used in lieu
of competitive bidding by the City when their solicitation was for equal or
greater quantities of like items or services, purchased under similar terms
and conditions, and the Purchasing Agent determines it is in the best
interest of the City to do so.
References: Ordinance Nos. 5907 & 6195
Admin Reg. 300
Previous Council Policy 306
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Page 4 of 4
ATTACHMENT B
BID RESULTS FROM BIDS SUBMITTED IN RESPONSE TO THE CITY OF ANAHEIM COMPETITIVE BID #7510
STREET SWEEPERS
DECRIPTION CITY
UNIT PRICE
EXTENDED
PRICE
UNIT PRICE
EXTENDED
PRICE
UNIT PRICE
EXTENDED
PRICE
UNIT PRICE
EXTENDED
PRICE
STREET SWEEPER 3
(FOB SANTA MONICA, CA)
$ 271,443.00
$ 814,329.00
$ 272,875.00
$ 818,625.00
$ 274,960.00
$ 824,880.00
$ 322,435.00
$ 967,305.00
DELIVERY 1
$ -
$ -
$ 1,000.00
$ 100.00
SUBTOTAL:
$
814,329.00
$
818,625.00
$
825,880.00
$
967,405.00
SALES TAX (9.25 %):
$
75,325.43
$
75,722.81
$
76,393.90
$
89,484.96
GRAND TOTAL:
$
889,654.43
$
894,347.81
$
902,273.90
$
1,056,889.96