sr-062612-3dCity Council Meeting: June 26, 2012
Agenda Item:
To: Mayor and City Council
From: Gigi Decavalles- Hughes, Director of Finance
Subject: Purchase Orders with multiple renewal option years exceeding $100,000
Recommended Action
Staff recommends that the City Council extend renewal options or authorize the
issuance of new Purchase Orders for the attached list of vendors whose cumulative
authorized purchase amount will exceed $100,000 for fiscal year 2012 -13.
Executive Summary
The City informally bids goods or services throughout the fiscal year where vendors
have the ability in their bid response to extend renewal options typically up to two years.
Additionally, staff conducts new bid processes that result in award of a new contract to
an incumbent vendor for an ongoing purchase of a good or service. The attached
vendors will exceed $100,000 for the same good or service with the execution of the
renewal option or with an award of a new Purchase Order.
Discussion
The City's Purchasing Section bids goods or services as required by City departments
throughout the fiscal year. The original dollar amount for the purchase order as
projected by the end -using division is based on the fiscal year needs at the time of
bidding, with no presumption of renewal options. Interpretation of the Municipal Code
provisions related to purchasing previously determined that the limit was based on each
fiscal year, and that when the original purchase order and annual renewals individually
did not exceed $100,000, it was determined that Council approval was not necessary,
as it fell under the provisions of SMMC 2.24.090, informal purchasing. A recent
preliminary review of Purchasing Section operations identified several areas where
opportunities to clarify policies and procedures exist, including applicability of formal
bidding requirements, better management of purchases of ongoing goods or services,
1
and expansion of outreach efforts to facilitate greater responses to bidding
opportunities.
In order to facilitate a transparent purchasing process during the ongoing review of the
Purchasing Section, this report presents a comprehensive list of vendors who
experienced one of the following situations:
1) Through execution of a renewal option, will exceed $100,000 in cumulative
purchases over multiple fiscal years; or
2) After an informal bid process, a new purchase order was issued to an incumbent
provider for the same good or service, where the cumulative amount exceeded
$100,000.
The attached list represents purchases that fall under one of the two categories above,
and were previously determined to fall under the City's informal purchasing
requirements yet exceed a cumulative amount of $100,000 to the same vendor for the
same good or service. In order to ensure a transparent purchasing process and follow
adopted Council policy requiring Council authorization for purchases in excess of
$100,000, and to ensure continuity of delivery of necessary goods or services, staff
recommends that Council approve the attached list of vendors to provide the specified
good or service through June 30, 2013.
Vendor Selection
Bids for each of the goods or services were posted on the City's online bidding system
in accordance with the City Charter and Municipal Code provisions related to vendor
selection, and were determined to be the best bidder as defined in 2.24.072 of the
Municipal Code.
L
Financial Impacts & Budget Actions
Funds are included in the FY 2011 -13 budget within Department budgets. Budget
authority in subsequent years will be requested in each budget cycle for Council
approval. Future funding is contingent upon Council approval.
Prepared by: Kellee Mac Donald, Senior Buyer
Forwarded to Council:
Rod Gould
City Manager
Attachments:
A. Exercising Renewal Options / New Purchase Orders
41
ATTACHMENT A
' VENDOR NAME
DEPARTMENT
DESCRIPTION OFSERVICE /GOODS
NEWPOAMOUNT
PREVIOUS POAMOUNT
TOTAL OF POs
I OTHER
Granger
SBB
Misc. shop supplies
$ 92,000.00
$ 75,647.99
$ 167,647.99
40849 -OG
Harbor Diesel
BBB -
IZF transmission parts
$ 52,440.00
$ 71,863.47
$ 124,303.47
40853 -OG
Harder Brake &Lathe
BBB
1 Lathe Service
$ 24,200.00
$ 25,460.00
$ 49,660.00
40861 -OG Total with vendor >100K
Harder Brake & Lathe
BBB
SSI Service
$ 54,000.00
$ 77,850.00
$ 131,850.00
40862 -CG Total with vendor 1100K
Harder Brake &Lathe
BBB
I SSI Replacement Parts
$ 17,500.001$
24,718.75
$ 42,218.75
40863 -OG Total with vendor >100K
Ironman
BBB
Longview Cleaire parts
$ 81,168.00;$
51,477.21
$ 132,645.21
40938 -OG
Major Cleanup
BBB
Drain 3 clarifiers of sludge
$ 60,000.00
$ 57,500.21
$ 117,500.21
41055 -OG
P.K. Plumbing
BBB
Plumbing services
$ 36,093.00
$ 67,558.96
$ 103,651.96
41081 -OG
Pacific Exchange
BBB
Deice Remy generators
$ 80,475.00
$ 63,163.64
$ ' 143,638.64
41089 -OG
Vehicle Maintenance Program
BBB
Filters
$ 61,835.50
$ - 103,720.72
-$ 165,556.22
41451 -OG
Janet Epstein & Associates
City Attomey,
Court Reportingand Disposition Services
$50,000
_
$ 30,869.00
$ 80,869.00
41041 -OG Will exceed $ 100,000 after last
renewal option is exercised (One Renewal
lOption remains)
West Group
City Attorney
On Line Research
j$ _ 57,000.00
$ 57,000'.00
41336 -OG Will exceed $ 100,000 after
remainingtwo renewal optionsare
,exercised
File keepers
'City Clerk
Storage and Retrieval Services
;$ 72,100.00
$ 56,334.00
1 $ 128, 434 .00141523
-OG Continuous every year
National Captioning
Community Information
Closed Captioning Services
:$ 53,500.00
$ 200,000.00
$ 253,500.00
Notyetentered
Omega Construction Co.; Inc
Facilities Maintenance
General contractor services
'$ 25,000.00
$ 94,413.00
$ 119,413.00'141792
-OG
All Pro Carpentry
Facilities Management
ICarpentry, framing, and glazing services
;$ 90,000.00
$ 82,777.68
$ 172,777.68,43118
-OG
Alpine Carpet One
Facilities Management
,Carpet /tile installation services
$ 80,000.00
$ 85,102.00,$
165,102.00
41120 -O3
Apex Roofing Contractors
Facilities Management
IRoofng contractorservices
$ 50,000.00
$ 47,583.80;$
97,58&80
141121-00
Best Contracting Services, Inc.
Facilities Management
Roofing cont2ctorservices
$ 90,925.00
$ 79,230.00;$
170,155.00141125 -OG
C.C. Layne& Sons
Facilities Management
',General contractor services
$ 50,462.50
$ 22,945.41
$ 73,407.91 1,41126 -OG
Creative Lighting Concepts,LLC
Facilities Management
Electrical supplies
$ 99,825.00
-$ 18,039.381$
117,36433!41129 -OG
Eberhard Roofing
Facilities Management
'!Waterproofing services
$ 83,700.00
$ 17,894.95
$ 101,594.951.
41132 -OG
Electric Supply Connection
Facilities Management
'.Maintenance supplies
$ 82,062.50
$ 53,331.76
j $ 135,394.26
141133 -OG
Elite Floor Covering
Facilities Management
!Flooring and tile contractor services
$ 94,000.00
$ 95,751.521$
189,751.52141135
-CG
Graffiti Control Systems
Facilities Management
;Graffiti removal services
$ 90,000.00
$ 63,468.00
1 $ 153,468.00
41140 -OG
Howard Industries
Facilities Management'
Maintenance supplies(HVAC supplies)
$ 82,062.50
$ 39,734.60
$ 121,797.10
41141 -OG
J. H. Bryant -Jr., Inc.
Facilities Management
Painting contractor services
$ 50,000.00
$ 39,009.50
$ 89,009.50
41145 -06 _
L.A. Hydro Jet
Facilities Management
Plumbing /rooter services and hydro- jetting
$ 50,437.50
$ 37,361.00
$ 87,798.5041147
-OG
Lee Technologies Services, Ina
Facilities Management
;Power management systems maintenance
$ 53,237.501$
33,798.13
$ 87,035.63
41148 -OG
M. C. Tile &Stone Company
Facilities Management
jTile contractor services
$ 75,000.00
i$ 77,967.50
$ 152,967.5041150
-OG
Master Cooling
Facilities Management
I,HVAC contractor services
$ 51,925.00;$
19,795.85
$ 71,720.85
41151 -OG
Monarch Plumbing &Mechanical
Facilities Management
Plumbingcontactdr services
$ 96,850.00
$ 65,788.71
$ 162,638.7141154
-OG
One Source Distributors
Facilities Management
�Maintenan<e supplies
$ 99,825.00!$
74,563.21
$ 174,383.21
41157 -OG
PumpMan
Facilities Management
Pump maintenance service and repairs
$ 80,000.00'.$
25,405.00
$ 105,405.00
41158 -OG
Randall /McAnany Co.
'Facilities Management
Painting contractor services
$ 80,000.00';$
71,685.00
$ 151,685.00
41159 -OG
Rick's Window Tinting
:Facilities Management
Glazingservices and window tinting
$ 83,700.00!$
54,232.50
$ 137,932.50
41160 -OG
ATTACH M E fNT A
VENDOR NAME
DEPARTMENT
DESCRIPTION OFSERVICE /GOODS
NEWPOAMOUNT
j PREVIOUS POAMOUNT
j TOTAL OFPOs
j OTHER
Ruben's Glass Service Inc.
Facilities Management
Glazing contactor services
$ 75,000.00:$
36,980.001$
111,980.00
41161 -OG
Sea -Clear Pools
Facilities Management
Pool /chemical repairs, service
$ 73,425.00
j$ 78,146.91
$ 151,571.9141163
-OG
Spectra Company
Facilities Management
Waterproofing services
$ 90,000.00
$ 67,532.00
$ 157,532.00
41169 -OG _
Surfside Restoration Waterproofing
Facilities Management
Waterproofing services
$ 25,000.00
$ 67,907.55
$ 92,907.55
41835 -OG
The Lighthart Corporation
Facilities Management
Plumbing contractor services
$ 90,000.00
$ 60,069.00
$ 150,069.00
41171 -OG
To Signal integration, Inc.
Facilities Management
Fire protection contractor services
$ 61,387.50
$ 1,865.22
$ 63,252.72
j 41172 -OG
Vortex Industries
:,Facilities Management
Door contractor services
!$ 90,000.00
$ 66,002.631$
156,002.63!41175
-OG
West Coast Air Conditioning
:Facilities Management
HVAC Contractor services
'$ 75,925.00
$ 79,201.88!$
155,126.88141177
-OG
WW Grainger, Inc.
Facilities Management
Maintenance supplies
$ 54,625.00
$ 25,251.84'$
79,876.8441176
-OG
American Moving Parts
'.. Fleet Management
!. Brake supplies and services
$ 65,318.75
$ 37,185.38
$ 102,504.13
41492 -OG
Boerner Truck Center
Fleet Management
'iFurnish and deliver OEM_ International HarvesterTru$
56,477.50
$ 27,659.31
$ 84,136.8141442
-OG
Haaker Equipment Company
Fleet Management
I Repair services and parts
$ 55,957.50
$ 15,728.52
$ 71,686.02
41494 -OG
Ray Gaskin Service
Fleet Management
Parts and services for heavy -duty refuse trucks
$ 65,087.50
$ 54,694.33
$ 119,781.83
41563 -OG
Siemens
ISD
Access control equipment & systems
$100,000
$ 500,000.00
$ - 600,000.00
Various
-
Blue Diamond
Street Maintenance'
Asphalt
$ 90,000.00
$ 360,000.00''$
450,000.00
This is bid quarterly due to volatile
petroleum costs and vendors unwilling to
jquote on an annual basis.
Department of Justice
Police
Fingerprinting and Background Checks
$ 88,000.001,$
I
66,821.00
$ 154, 821.00
42207 -OG Sole Source, Continuous peryear
Dooley Enterprises
Police
Ammunition
$ 75,000.00
$ 36,851.00
$ 111,851.00
42197 -OG Sole Source, Continuous peryear
Galls
-
Police
lPolice Uniforms and Protective Gear -
$ 85,659.00
$ 102,660.00
$ 188,319.00
41676 -OG City of LA Contract, Formal Bid
12/13
YorkTel
PSF
Whiteboard for EOC
$ 9,376.00
$ 98,274.00
$ 107,650.00
Two different purchases made with this
vendor, each quoted separately. Second
,exceeded
I
GPS Insight
-. RRR
GPS Equipment
$ 32,000.00
$ 36,000.00
$ 68, 000.00
RFP maintenance sole source approved
4/3/09 for 2 years with 3 additional year
renewal options estimated at an average of
$34,00 annually until fiscal year 14 -15
Qualified Mobile
IRRR
Fleet Washing
$- 50,000.00
$ 50,816.00
$ 100,816.00
41083 -OG
Granger
;Various Departments
Misc shop supplies
$
Using WSCA contract
Liberty Paper IiVarious
Departments
Copy Paper
$ 89,000.00
$ 80,000.00
$ 169,000.00
Various
Neptune Technology
Water
Neptune meters
$ 53,532.00
$ 53,532.47'$
140702-OG
162737.75 including fy 13 -1 :a4%
one additional renewal option at
increase forty 13- 14$55,673.28
Thatcher Company
WaterTreatment Plant
Ammonium Sulfate
$ 65,152.00;$
21,596.731,$
;40770
86,758.73 :the
-OG one additional renewal option at
same price$65,162
Ferguson Water Works
Water Treatment Plant
Misc Water supplies
$ 155,000.00
1
$155,000 1
Due to Warehouse Closure