SR-12-17-2013-3C - 205-003City Council Meeting: December 17, 2013
Agenda Item: -i- C�
To: Mayor and City Council
From: Martin Pastucha, Director of Public Works
Subject: Purchase Order and Bid Award Increases for Carpet and Flooring Contractor
Services
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Staff recommends that the City Council:
1. Approve a change order to purchase order 22371 -OF in the amount of $15,000 with
HM Carpet, a California -based company, and to purchase order 22373 -OF in the
amount of $85,000 with Elite Floorcovering, a California -based company for carpet
and flooring contractor services for the remainder of FY 2013 -14. This would result
in revised purchase orders total not to exceed $190,000 and $160,000 through June
30, 2014.
2. Approve an increase in the amount of $100,000 to the bid award to HM Carpet
(primary contractor) and Elite Floorcovering (secondary contractor) for carpet and
flooring contractor services from July 1, 2014, through June 30, 2016, for a new
three -year total not to exceed $950,000, with future year funding contingent on
Council budget approval.
Executive Summary
The City contracts carpet and flooring replacement and repair services for City facilities.
On July 23, 2013, Bid #4066 was awarded to HM Carpet (primary contractor) and Elite
Floorcovering (secondary contractor) in an amount not to exceed $750,000 over a three -
year period. The total amount paid under this agreement through November 2013 is
$65,979. With the scheduling of additional carpet and flooring replacement projects since
bid award, staff anticipates that another $225,000 in planned expenditures would be
required to perform carpet and flooring replacement work through FY 2013 -14. Staff also
requests an additional $59,000 to cover any emergencies that may occur in the upcoming
winter season. Staff recommends Council approve change orders to HM Carpet purchase
order 22371 -OF in the amount of $15,000 and Elite Floorcovering purchase order 22373 -
OF in the amount of $85,000 to cover purchases through June 30, 2014. Total purchases
for FY 2013 -14 would not exceed $350,000. Staff also recommends an additional bid
award increase in the amount of $100,000 for purchases, associated contingency costs,
and expenses from emergencies for carpet and flooring repairs and replacements for the
period of July 1, 2014, to July 23, 2016. Total purchases for FY 2014 -15 and FY 2015 -16
would be budgeted at $300,000 per year and would not exceed $600,000 for both years.
This would result in a new three -year amended agreement total not to exceed $950,000.
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Discussion
On July 23, 2013, Council awarded Bid #4066 in the amount of $750,000 to HM Carpet
(primary contractor) and Elite Floorcovering (secondary contractor) for carpet and flooring
replacement and repair services for a three -year period. HM Carpet was issued purchase
order 22371 -OF for $175,000 and Elite Floorcovering was issued purchase order 22373 -
OF for $75,000 for services through June 30, 2014. Replacements for FY 2013 -14 are
scheduled at 1450 Ocean, City Hall, Fairview Library, Main Library, Joslyn Park
Auditorium, the Public Safety Facility, and the Santa Monica Pier Carousel Building.
Expenditures under the current agreement total $65,979, but staff estimates $225,000 in
additional services would be required for planned carpet and flooring repairs and
replacements through June 2014 due to the additional projects identified. In addition, staff
requests an additional $59,000 to cover any emergencies that may occur in the upcoming
winter season.
Based on the foregoing, staff recommends approving change orders to HM Carpet
purchase order 22371 -OF in the amount of $15,000 and Elite Floorcovering purchase
order 22373 -OF in the amount of $85,000 to cover purchases through June 30, 2014. The
total amount for both purchase orders would not exceed $350,000 for FY 2013 -14. Staff
also recommends an additional bid award increase in the amount of $100,000 for
purchases, associated contingency costs, and expenses from emergencies for the period
of July 1, 2014, to July 23, 2016. Based on historical usage, purchases should not exceed
$300,000 each for FY 2014 -15 and FY 2015 -16. This would result in a new three -year
amended agreement total not to exceed $950,000.
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Financial Impacts & Budget Actions
The change order to be awarded to HM Carpet is $15,000 for purchases through the end
of FY 2013 -14, for an amended purchase order total not to exceed $190,000. The change
order to be awarded to Elite Floorcovering is $85,000 for purchases through the end of FY
2013 -14, for an amended purchase order total not to exceed $160,000. Funds are
available in FY 2013 -14 in various operating and capital improvement program budgets
managed by divisions incurring the maintenance services. Services will be performed only
if funds are available in the appropriate accounts. Budget authority for subsequent years
will be requested in each budget cycle for Council approval. Future funding is contingent
upon Council approval.
Prepared by: Kevin Nagata, Administrative Analyst
Approved:
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Martin Pastucha
Director of Public Works
Forwarded to Council:
Rod Gould
City Manager
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