SR 05-09-2017 3E
Ci ty Council
Report
City Council Meeting : May 9, 2017
Agenda Item: 3.E
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To: Mayor and City Council
From: Susan Cline, Director , Public Works, Street & Fleet Services
Subject: Fleet Management Sole Source Requests
Recommended Action
Staff recommends that the City Council :
1. A uthorize the Purchasing Services Manager to issue a purchase order with
AMREP , a New Jersey -based company, for equipment and parts for AMREP
bodies . This recommended award is made as an exception to the competitive
bidding process pursuant to Section 2.24.080(a) and is for a total amount not to
exceed $181,765 with future year funding contingent on Council budget approval.
2. A uthorize the Purchasing Services Manager to issue a purchase order with
Mar -Co Equipment Company , a Texas -based company, for TYMCO parts and
service . This recommended award is made as an exception to the competitive
bidding process pursuant to Section 2.24.080(a) and is for a total amount not to
exceed $212,463 with future year funding contingent on Council budget approval.
3. A uthorize the Purchasing Services Manager to issue a purchase ord er with
Municipal Maintenance Equipment, a California -based company, for GO -4
vehicle parts . This recommended award is made as an exception to the
competitive bidding process pursuant to Section 2.24.080(a) and is for a total
amount not to exceed $128,913 with future year funding contingent on Council
budget approval.
4. A uthorize the Purchasing Services Manager to issue a purchase order with
Ray Gaskin Service , a California -based company, for equipment and parts for
Scranton Manufacturing (New Way), Wayne E ngineering, Dadee equipment .
This recommended award is made as an exception to the competitive bidding
process pursuant to Section 2.24.080(a) and is for a total amount not to exceed
$411,411 with future year funding contingent on Council budget approval.
5. A uthorize the Purchasing Services Manager to issue a purchase order with
Tennant Company , a Minnesota -based company, for repair and maintenance
parts for Tennant machines . This recommended award is made as an exception
to the competitive bidding process p ursuant to Section 2.24.080(a) and is for a
total amount not to exceed $175,525 with future year funding contingent on
Council budget approval.
Executive Summary
Fleet Management is responsible for ensuring that the City’s diverse fleet of vehicles
and ot her automotive -related equipment , such as power washers and generators, are
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available, dependable, meet the highest environmental standards for a sustainable fleet,
and are safe to operate from acquisition through disposal . Staff recommends that the
City Council approve the s ole s ource request for proprietary purchase of goods and
services from AMREP, Mar -Co, Municipal Maintenance Equipment, Ray Gaskin
Service, and Tennant Company. As proprietary equipment, t his recommendation is
made as an exception to th e competitive bidding process pursuant to Section SMMC
2.24.080 (a) and is for a total amount not to exceed $1,110,078 over a five -year period
with future year funding contingent on Council budget approval.
Background
Fleet Management attempt s to balance maintenance costs while ensuring vehicle
reliability and meeting the original equipment manufacturer (OEM) standards for vehicle
specific maintenance needs.
Certain manufacturers are the sole source of their proprietary parts and/or service for
their par ticular brand. Over the years, Fleet Management has submitted requests for
s ole s ource goods and services for various manufacturers. The following s ole s ource
requests are the most recently approved requests , which have exceeded $175,000, or
will exceed $1 75,000 by fiscal year (FY) 2017 -2018:
Vendor Name Coverage Dates Amount Approved Amount Spent Difference
AMREP FY13/14 - FY17/18 $150,000 $151,434 ($1,435)
Mar -Co FY15/16 - FY18/19 $175,000 $84,730 $90,270
MME FY14/15 - FY16/17 $120,000 $80,236 $39,76 4
Ray Gaskin FY14/15 - FY15/16 $140,000 $209,018 ($69,018)
Tennant
Company
FY14/15 - FY18/19 $165,000 $99,997 $65,004
L arge vehicles such as the f r ont loaders (Amrep bodies) and s ide loaders (Dadee
bodies, supported by Ray Gaskin Service) are purchas ed through a c hassis dealer. The
chassis dealer partner s with body manufactures and provide s a combined price for the
complete unit. There are no other jurisdictions known to require the chassis dealer to
negotiate pricing for parts with the manufactures that supply the bodies during
manufacturing .
Discussion
The goods and/or services provided by AMREP Manufacturing, Inc., Mar -Co, MME, Ray
Gaskin Service, and Tennant Company are proprietary, copyrighted, patented, or
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otherwise only available from them as exclusive distributor and are need ed to ensure
that the current fleet can be maintained based on manufacturer standards.
AMREP Manufacturing, Inc.
The vendor, AMREP, is the sole authorized distributor of all equipment and parts for
AMREP bodies and AMREP body parts. The Resource, Recovery, and Recycling
Division currently operates refuse trucks that require AMREP OEM parts and services.
AMREP Manufacturing, Inc. is the parts manufacturer and the only authorized OEM
parts and service distributor for these vehicles .
Staff exceeded the original s ole s ource amount by $1,435 and it is expected that a total
of $180,331 will be spent with AMREP, based in Ontario, California, for FY2016 -17
through FY2020 -21. T he t otal amount requested will not exceed $181,76 5 .
M ar -Co Equipment Company
The City currently owns and operates six TYMCO sweepers that are utilized by the
Resource, Recovery, and Recycling Division. Parts, labor, and related items for these
sweepers are available solely through Mar -Co Equipment Company, t he authorized
dealer for TYMCO parts and service in our geographical area.
A total of $90,270 remains available for use from the last s ole s ource request which will
cover the remainder of FY2016 -17 and FY2017 -18. It is expected that a total of
$212,463 wi ll be spent with Mar -Co Equipment Company, based in Pomona, California,
for FY2018 -19 through FY2022 -23. T he t otal amount requested will not exceed
$212,463.
MME
The vendor, Municipal Maintenance Equipment (MME), is the only authorized parts
dealer for GO -4 vehicles and maintenance parts. GO -4s are used by the City of Santa
Monica’s Police – Traffic Services Division. These units and parts are sold exclusively
through MME.
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A total of $39,764 remains available for use from the original sole source request which
will cover the remainder of FY2016 -17. It is expected that a total of $128,914 will be
spent with MME, based in Sacramento, California, for FY2017 -18 through FY2021 -22.
T he t otal amount requested will not exceed $128,913 .
Ray Gaskin Service
In recen t years, bids have been awarded to various vehicle manufacturers and dealers
that have used a refuse body built by a manufacturer that has chosen Ray Gaskin
Service as the sole source supplier of parts and service. Ray Gaskin Service is the sole
authorized distributor of all equipment and parts for refuse bodies built by Scranton
Manufacturing (New Way), Wayne Engineering, and Dadee.
The current fleet inventory consists of the following vehicles that must be sent to Ray
Gaskin for service, or for the purch ase of parts: 22 side loaders, four rear loaders, eight
bin trucks, and one split body refuse packer.
Staff exceeded the original sole source by $69,018 and it is expected that a total of
$342,394 will be spent with Ray Gaskin Service, based in Fontana, C alifornia, for
FY2016 -17 through FY2020 -21. T he t otal amount requested will not exceed $411,411 .
Tennant Company
Tennant Company is the sole source manufacturer of Tennant machines, repair and
maintenance parts, and provides scrubber sweepers for the City ’s Promenade
Maintenance Division. These machines and parts are sold through Tennant Company’s
wholly -owned subsidiary, Tennant Sales and Service Co. Tennant Sales and Service
Co. is the sole source for the “Tennant Factory Trained” service technicians qua lified to
repair and maintain machines manufactured by Tennant Company and covered under
the Tennant Company warranty.
A total of $65,004 remains from the original s ole s ource request , which will cover the
remainder of FY2016 -17. It is expected that a tot al of $175,525 will be spent with
Tennant Company, based in Minneapolis, Minnesota, for FY2017 -18 through FY2021 -
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22. T he t otal amount requested will not exceed $175,525.
Summary
Vendor Name
Previous Sole
Source
Amount
Previous Sole
Source Amount
Remaining /
Overexpenditure
Amount
Requested Total
AMREP $150,000 ($1,435) $180,330 $181,765
Mar -Co $175,000 $90,270 $212,463 $212,463
MME $120,000 $39,764 $128,913 $128,913
Ray Gaskin $140,000 ($69,018) $342,393 $411,411
Tennant Company $165,000 $65,004 $175 ,525 $175,525
Grand Total $1,110,07 8
Vendor Selection
AMREP, Mar -Co, Municipal Maintenance Equipment (MME), Ray Gaskin Service, and
Tennant Company are all the sole source providers for their respective parts and/or
service s . The Purchasing Servi ces Manager was able to confirm with AMREP, Mar -Co,
Municipal Maintenance Equipment (MME), and Ray Gaskin Service that the City is
receiving municipal fleet or government pricing for parts, as they combine the spending
of all governmental agencies and appl y discounts accordingly. As the sole proprietary
sources of parts and service s of the original equipment, t his recommendation is made
as an exception to the competitive bidding process pursuant to Section SMMC 2.24.080
(a) and is for a total amount not to exceed $1,110,078 over a five -year period with future
year funding contingent on Council budget approval.
Financial Impacts and Budget Actions
The purchase order to be awarded to AMREP is for an amount not to exceed $181,765 .
Funds of $34,652 are availa ble in the FY 2016 -17 budget in the Public Works
Department. The purchase order will be charged to account 54459.522990 . Future year
funding is contingent on Council budget approval.
The purchase order to be awarded to Mar -Co Equipment Company is for an a mount not
to exceed $212,463 . Funds of $40,827 are available in the FY 2016 -17 budget in the
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Public Works Department. The purchase order will be charged to account
54459.522990 and 54459.522920 . Future year funding is contingent on Council budget
approval.
The purchase order to be awarded to MME is for an amount not to exceed $128,913 .
Funds of $24,772 are available in the FY 2016 -17 budget in the Public Works
Department. The purchase order will be charged to account 54459.522990 . Future year
funding is co ntingent on Council budget approval.
The purchase order to be awarded to Ray Gaskin Service is for an amount not to
exceed $411,411 . Funds of $65,794 are available in the FY 2016 -17 budget in the
Public Works Department. The purchase order will be charged to account
54459.522990 . Future year funding is contingent on Council budget approval.
The purchase order to be awarded to Tennant Company is for an amount not to exceed
$175,525 . Funds of $33,792 are available in the FY 2016 -17 budget in the Public Work s
Department. The purchase order will be charged to account 54459.522990 . Future year
funding is contingent on Council budget approval.
Prepared By: Heidi Duran, Administrative Analyst
Approved
Forwarded to Council
Attachments:
A. Sole Source Letter - AMREP Manufacturing, Inc.
B. Sole Source Letter - Mar -Co TYMCO
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C. Sole Source Letter - MME
D. Sole Source Letter - Ray Gaskin Dadee
E. Sole Source Letter - Ray Gaskin New Way
F. Sole Source Letter - Ray Gaskin Wayne Engineering
G. Sole Source Letter _ Tennant
H. Mar -Co Oaks Form
I. AMREP Oaks Form
J. Ray Gaskin Oaks Form
P a g e 1 o f 1
P a g e | 1
January 6, 2017
T o whom it may concern:
This letter will confirm that the exclusive authorized Westward Industries GO-4 products
dealer for sales, parts, service, and warranty repairs in California and Northern Nevada is
Municipal Maintenance Equipment, Inc. with locations at:
Municipal Maintenance Equipment, Inc.
2360 Harvard Street
Sacramento, CA 95815
TEL 916-922-1101
FAX 916-922-1034
E-mail: jwheeler@source-mme.com Website: www.source-mme.com
1931 Nancita Circle
Placentia, CA 92870
TEL 714-528-8770
F AX 714-528-8744
1930 W. Winton Ave., Suite 8
Hayward, CA 94545
TEL 510-670-0230
FAX 510-670-9003
4750 Caterpillar Road, Unit D
Redding, CA 96003
TEL 530-243-4856
FAX 530-243-1447
Failure to have service and warranty work performed by an authorized dealer for GO-4
three wheeled vehicles voids any warranty by this manufacturer.
If you have any questions or need additional information, please do not hesitate to contact
me.
Sincerely,
C h r i s Fr a nz
V i ce P r es i d ent -Westw a r d In d us t r i es
CITY OF SANTA MONICA
OAKS INITIATIVE DISCLOSURE FORM
In order to facilitate compliance with the requirem ents of the Oaks Initiative, the City
compiles and maintains certain information. That in formation includes the name of any
person or persons who is seeking a “public benefit.” If the “public benefit” is sought by
an entity, rather than an individual person, the in formation includes the name of every
person who is: (a) trustee, (b) director, (c) partn er, (d) officer, or has (e) more than a
ten percent interest in the entity.
Public benefits include:
1. Personal services contracts in excess of $25,000 over any 12-month period;
2. Sale of material, equipment or supplies to the C ity in excess of $25,000 over a 12-
month period;
3. Purchase, sale or lease of real property to or f rom the City in excess of $25,000
over a 12- month period;
4. Non-competitive franchise awards with gross reve nue of $50,000 or more in any
12-month period;
5. Land use variance, special use permit, or other exception to an established land
use plan, where the decision has a value in excess of $25,000;
6. Tax “abatement, exception, or benefit” of a valu e in excess of $5,000 in any 12-
month period; or
7. Payment of “cash or specie” of a net value to th e recipient of $10,000 in any 12-
month period.
Name(s) of persons or entities receiving public ben efit:
Name(s) of trustees, directors, partners, and offic ers:
Name(s) of persons with more than a 10% equity, par ticipation, or revenue interest:
Prepared by: ____________________________Title: __________________________
Signature: ______________________________________ D ate: ________________
Email: ____________________________________ Phone: ____________________
FOR CITY USE ONLY:
Bid/PO/Contract # ____________________________ Permit # ___________________________
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