SR 07-25-2017 3I
Ci ty Council
Report
City Council Meeting : July 25, 2017
Agenda Item: 3.I
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To: Mayor and City Council
From: Gigi Decavalles -Hughes, Director , Finance Department, Procurement
Subject: Reject Bid for Citywide Water Cooler Rental
Recommended Action
Staff recommends that the City Council:
1. Reject the only bid for Bid #4269 to pr ovide water cooler rental and maintenance
citywide ; and
2. Direct staff to revise specifications and reissue a bid in order to obtain a best
bidder to provide water coolers and maintenance citywide.
Executive Summary
The City provides bottle -less water co olers for various City offices throughout the c ity .
The C ity only received one response for Bid #4269 and it was non -responsive because
the company was not able to meet prevailing wage law requirements. Staff
recommends rejecting the bid in order to revi se specifications and obtain the best bidder
to provide water coolers and maintenance citywide.
Background
The City currently leases approximately 44 bottle -less water coolers at various sites.
Depending on specific facility needs, the City uses small, me dium or large units that
dispense hot and cold water. The water coolers must connect directly to the building’s
regular cold water supply line. Per State law SB 854, contractors working on
construction and maintenance of public facilities and infrastruct ure over a set dollar limit
must be registered with California Department of Industrial Relations (DIR) as contractor
that employ licensed plumbers, and must pay prevailing wages. The current market of
companies that lease, install and maintain water coo lers are not registered as
contractors, do not employ licensed plumbers and do not pay prevailing wage rates.
Discussion
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In May 2017, the City published Notices Inviting Bids to provide water cooler rental and
maintenance citywide , in accordance with City specifications. The bid was posted on
the City’s on -line bidding site, and notices were advertised in the Santa Monica Daily
Press in accordance with City Charter and Municipal Code provisions. 262 vendors
were notified, 102 vendors downloaded the bid. One bid was received and publicly
opened on May 8, 2017. The bid was evaluated based on the criteria in SMMC
2.24.072, including competitive price, previous experience, ability to deliver, quality of
product, and compliance with City specifications. The bid was non -responsive because
the company was not able to meet prevailing wage law requirements. As a re sult of
these requirements the C ity will look at altern atives to provide this service.
Staff recommends the Council reject all bids and direct staff to revise specifications and
issue a new Notice Inviting Bids in order to obtain the best bidder for this project in
accordance with new City specifications.
The new bid could solicit proposals for either of the following options:
The C ity could contract out the service as a turn -key solution that would require a
licensed contractor complying with prevailing wage requirements to be
responsible for the delivery, installation and maintenance of the water coolers.
The C ity could also opt to provide the water coolers and contract out the service
to provide the installation and maintenance.
Financial Impacts and Budget Actions
There is no immediate financial impact or budget action necessary as a result of the
recommended action.
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Prepared By: Araceli Esparz a, Purchasing Services Manager
Approved
Forwarded to Council