SR-11-26-2013-3I - 205-003City Council Meeting: November 26, 2013
Agenda Item: 3,1
To: Mayor and City Council
From: Martin Pastucha, Director of Public Works
Subject: Purchase Order and Bid Award Increases for Pier Lumber
Recommended Action
Staff recommends that the City Council:
1. Approve a change order to purchase order 21995 -OF in the amount of $40,000
with Gemini Forest Products, a California -based company, for purchase and
delivery of lumber to the Santa Monica Pier for the remainder of FY 2013 -14.
This would result in a revised purchase order total not to exceed $80,000 through
June 30, 2014.
2. Approve an increase in the amount of $40,000 to the bid award to Gemini Forest
Products for purchase and delivery of lumber to the Santa Monica Pier from July
1, 2014 through October 23, 2015 for a new three -year amended agreement total
amount not to exceed $195,000, with future year funding contingent on Council
budget approval.
Executive Summary
The City purchases lumber for replacement of Santa Monica Pier (Pier) deck boards,
stringers, pile caps and other portions of the wooden structure by staff and contractors.
On October 23, 2012, Bid #4029 was awarded to Gemini Forest Products in an amount
not to exceed $115,000 over a three -year period. There has been an increase in
lumber usage in FY 2013 -14 to address deteriorated deck boards. Staff anticipates
significant additional repairs to be performed on the Pier parking lot deck. The total
amount paid or committed under this agreement through October 2013 is $70,877.
Therefore, staff recommends Council approve a change order to purchase order 21995 -
OF in the amount of $40,000 to cover purchases through June 30, 2014 and an
additional bid award increase in the amount of $40,000 for purchases from July 1, 2014
to October 23, 2015. Total purchases over the three -year agreement will not exceed
$195,000.
Discussion
On October 23, 2012, Council awarded Bid #4029 in the amount of $115,000 to Gemini
Forest Products for the purchase and delivery of lumber to the Santa Monica Pier for a
1
three -year period. Due to increased replacements of deteriorating deck boards and
identification of several portions of the Pier parking lot deck requiring replacement,
additional lumber will be needed to maintain the Pier structure to ensure the safety of
visitors and staff. In FY 2013 -14, Pier Maintenance has purchased $36,920 in lumber
(26,944 board -feet of Douglas fir grade #1 or better) as of October 15, 2013. In the
previous three fiscal years, lumber orders have not exceeded $35,000 per year. Since
October 23, 2012, expenditures and orders under the current agreement with Gemini
Forest Products total $70,877. Staff recommends Council approve a change order to
purchase order 21995 -OF in the amount of $40,000 to cover purchases through June
30, 2014 and an additional bid award increase in the amount of $40,000 for purchases
from July 1, 2014 to October 23, 2015. Total purchases over the three -year agreement
will not exceed $195,000. These increases will not affect unit pricing under the current
agreement. Gemini Forest Products' lumber is supplied by Sierra Pacific Industries,
certified by the Sustainable Forestry Initiative which promotes responsible and
sustainable forest management in North America.
Financial Impacts & Budget Actions
The change order to be awarded to Gemini Forest Products is $40,000 for purchases
through the end of FY 2013 -14, for an amended purchase order total not to exceed
$80,000. Funds are available in the FY 2013 -14 budget in division 30455; purchase
order will be charged to account 30455.533240. Budget authority for subsequent years
will be requested in each budget cycle for Council approval. Future funding of
purchases is contingent upon Council approval.
Prepared by: Kevin Nagata, Administrative Analyst
Approved:
Forwarded to Council:
Martin Pastucha Rod Gould
Director of Public Works City Manager
E