Loading...
SR 05-22-2018 3A City Council Report City Council Meeting: May 22, 2018 Agenda Item: 3.A 1 of 5 To: Mayor and City Council From: Susan Cline, Director, Public Works, Street & Fleet Services Subject: Sole Source Award for the Purchase of Nine Tennant Company Scrubber- Sweepers and Full Service Maintenance Agreements Recommended Action Staff recommends that the City Council: 1. Authorize the Purchasing Services Manager to issue a purchase order with Tennant Company, a Minnesota-based company, for the purchase and delivery of four model M-30 sweeper-scrubbers, two model M-20 sweeper-scrubbers, one model S-30 rider-sweeper, one model T-17 rider-scrubber, and one model M- 6100 rider-sweeper. 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 $584,331 with future year funding contingent on Council budget approval. 2. Authorize the City Manager to negotiate and execute an agreement with Tennant Company, a Minnesota-based company, to provide full service maintenance for nine vehicles. This recommended award is made as an exception to the competitive bidding process pursuant to Section 2.24.080(a) in an amount not to exceed $380,456 for the purchase of six pre-paid, four-year maintenance agreements and three pre-paid, five-year maintenance agreements, with future year funding contingent on Council budget approval. Executive Summary The Public Landscape, Resource Recovery and Recycling, and Airport divisions of the Public Works Department use specialized vehicles for the maintenance of streets and sidewalks along the Third Street Promenade and Colorado Esplanade, pathways within the parks, servicing City-owned underground parking areas, and to provide commercial sweeping services. This purchase would allow the Public Landscape Division to replace six vehicles in FY 2017-18 and one vehicle in FY 2018-19 that have reached the end of their cost-effective, useful life. It would also allow the Resource Recovery and Recycling Division to replace one vehicle in FY 2018-19, and the Airport Division to add one approved vehicle to their inventory in FY 2017-18, as part of the Vehicle Replacement Program. In the previous bid for scrubber vehicles, Tennant Company was the only 2 of 5 bidder who could meet the specifications for units necessary to maintain the streets and sidewalks in the downtown area. Nine vehicles would be purchased along with maintenance agreements, for a two-year not to exceed amount of $964,787, with future year funding contingent on Council budget approval. This purchase would meet the goals of the City’s Reduced-Emissions Fuels Policy by utilizing vehicles powered by propane fuel and electricity. Background On January 13, 2015, Tennant Company was chosen to provide three M-30 scrubber- sweepers, including full-service maintenance agreements, as the sole responsive bidder (Attachment A). Of the three responses received, two were No Bids received from vendors that stated they are unable to supply the goods and/or services specified. Tennant Company is the sole manufacturer of Tennant machines and repair and maintenance parts. Their wholly-owned subsidiary, Tennant Sales and Service Company, is the sole source for machines, repair and maintenance parts, and Tennant factory trained service technicians providing service and warranty repairs. Discussion The City replaces vehicles that have reached the end of their cost-effective useful life based on age, mileage, and repair history through the Vehicle Replacement Program. This purchase would replace up to seven vehicles that are used by the Public Landscape Division, six in FY 2017-18 and one in FY 2018-19, for maintenance of the streets and sidewalks along the Third Street Promenade, the Colorado Esplanade, and for pathways within the parks six hours a day, seven days a week and one vehicle for the Resource Recovery and Recycling Division in FY2018-19 used for cleaning around the City Yard Facility, the Big Blue Bus underground parking area, and for several non- City-owned underground parking garages where the division is hired to perform cleaning services. The existing vehicles to be replaced were purchased between 2008 and 2015 and are listed in the table below. Unit # Year Age Original Cost Total Maintenance 3 of 5 Cost 16170 2008 10 $58,916 $46,457 16296 2009 8 (Unit sold) $32,000 $100,045 20039 2010 7 $28,321 $7,310 20228 2013 4 $72,143 $42,706 20321 2015 3 $69,251 $36,437 20322 2015 3 $69,251 $34,757 20323 2015 3 $69,251 $36,504 20373 2015 3 $69,251 $34,462 This equipment cleans a large amount of square footage in less than ideal outdoor conditions and has been subject to additional measures such as bleach (in response to threats of a Hepatitis A outbreak) and salt from the sea air, which is why some of the vehicles need to be replaced within a short time frame. This purchase would also add one approved vehicle to the inventory in the Airport Division in FY 2017-18 to improve the efficiency of sidewalk cleaning around the Airport and the courtyard, which is currently done with large push-brooms by staff. Staff recommends awarding a sole source purchase order to Tennant Company for the purchase of seven scrubber vehicles in FY2017-18 and two scrubber vehicles in FY 2018-19. A maximum of nine scrubber vehicles would be purchased under this Council action, contingent on Council budget approval. Vendor/Consultant Selection Staff recommends Tennant Company to furnish and deliver the following vehicles as an exception to the competitive process:  4 – M30 Sweeper-Scrubbers (propane-powered), plus four-year, full-service maintenance package  2 – M20 Sweeper-Scrubber (propane-powered), plus four-year, full-service maintenance package  1 – S30 Rider Sweeper (propane-powered), plus five-year, full-service maintenance package  1 – T17 Rider Scrubber (electric-powered), plus five-year, full-service maintenance package 4 of 5  1 – M-6100 Rider Sweeper (electric-powered), plus five-year, full-service maintenance package Tennant Company is extending an 11% discount off list price, based on General Services Administration (GSA) pricing. The durability of the equipment is of paramount consideration in this purchase. The City’s public spaces require durable equipment that is compatible with the demanding cleaning environment and schedule. In 2015, staff determined that a pre-paid maintenance contract was the most cost- effective way to maintain the units at optimum functionality because the vendor services the units on-site, thereby shortening the down-time of the vehicles. Fleet Management does not have the capacity to perform maintenance of the Promenade Maintenance units with the current staffing levels and workload. Also, without the full-service maintenance contracts, the City would be responsible for the purchase of all parts necessary to maintain the equipment. Tennant is the only company that provides full- service agreements for their equipment. A maintenance contract has the additional advantage of predictable costs with fewer unforeseen out-of-pocket repair bills or expenses. Based on these criteria, Tennant Company is recommended as the sole source vendor to provide the nine units listed above, over a two-year period, including full service maintenance. Tennant Company is the incumbent, having been the sole responsive bidder for the previous purchase of three model M-30 sweeper-scrubber units in 2015, provides the level of experience desired, and currently provides exemplary service for the existing Tennant units in the City’s inventory. Staff has continued to review other units at vendor’s requests since 2015 and have not found another unit that provides the durability needed and the level of service required for the Promenade equipment. This purchase meets the goals of the City’s Reduced-Emissions Fuels Policy by utilizing vehicles powered by propane fuel and electricity, as compared to those that use unleaded fuel. Financial Impacts and Budget Actions The purchase order to be awarded to Tennant Company is for an amount not to exceed $964,787 (includes a 15% contingency on service cost) for the purchase and 5 of 5 maintenance of seven scrubber vehicles in FY 2017-18 and two scrubber vehicles in FY 2018-19. Funds of $384,821 are available in the FY 2017-18 Capital Improvement Program budget and $283,756 in the FY 2017-18 budget in the Public Works Department. The purchase orders will be charged to the following accounts: C540167.589200 $371,651 C540167.589100 $ 13,170 014984.523000 $269,098 33457.523000 $ 14,658 TOTAL $668,577 Future year funding for the two additional scrubber vehicles and corresponding maintenance agreements is contingent on Council budget approval. Prepared By: Ryan Kraemer, Senior Administrative Analyst Approved Forwarded to Council Attachments: A. January 13, 2015 Staff Report B. Tennant Sales and Service Company Oaks Form CITY OF SANTA MONICA OAKS INITI ATIVE NOTICE NOTICE TO APPLICANTS, BIDDERS, PROPOSERS AND OTHERS SEEKING DISCRETIONARY PERMITS, CONTRACTS, OR OTHER BENEFITS FROM THE CITY OF SANTA MONICA Santa Monica’s voters adopted a City Charter amendment commonly known as the Oaks Initiative. The Oaks Initiative requires the City to provide this notice and information about the Initiative’s requirements. You may obtain a full copy of the Initiative’s text from the City Clerk. This information is required by City Charter Article XXII—Taxpayer Protection. It prohibits a public off icial from receiving, and a person or entity from conferring, specified personal benef its or campaign advantages from a person or entity after the official votes, or otherwise takes official action, to award a “public benefit” to that person or entity. The prohibition applies within and outside of the geographical boundaries of Santa Monica. All persons or entities applying or receiving public benefits from the City of Santa Monica shall provide the names of trustees, directors, partners, and officers, and names of persons with more than a 10% equity, participation or revenue interest. An exception exists f or persons serving in those capacities as volunteers, without compensation, for organizations exempt from income taxes under Section 501(c)(3), (4), or (6), of the Internal Revenue Code. However, this exception does not apply if the organization is a political committee or controls political committees. Examples of a “public benefit” include public contracts to provide goods or services worth more than $25,000 or a land use approval worth more than $25,000 over a 12-month period. In order to facilitate compliance with the requirements of the Oaks Initiative, the City compiles and maintains certain information. That information 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 information includes the name of every person who is: (a) trustee, (b) director, (c) partner, (d) officer, or has (e) more than a ten percent interest in the entity. Therefore, if you are seeking a “public benefit” covered by the Oaks Initiative, you must supply that information on the Oaks Initiative Disclosure Form. This inf ormation must be updated and supplied every 12 months. CITY OF SANTA MONICA OAKS INITI ATIVE DISCLOSURE FORM In order to facilitate compliance with the requirements of the Oaks Initiative, the City compiles and maintains certain information. That information 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 information includes the name of every person who is: (a) trustee, (b) director, (c) partner, (d) officer, or has (e) more than a ten percent interest in the entity. Public benef its include: 1. Personal services contracts in excess of $25,000 over any 12-month period; 2. Sale of material, equipment or supplies to the City in excess of $25,000 over a 12- month period; 3. Purchase, sale or lease of real property to or from the City in excess of $25,000 over a 12- month period; 4. Non-competitive franchise awards with gross revenue 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 value in excess of $5,000 in any 12- month period; or 7. Payment of “cash or specie” of a net value to the recipient of $10,000 in any 12- month period. Name(s) of persons or entities receiving public benefit: Tennant Sales and Service Company Name(s) of trustees, directors, partners, and officers: See Attached Name(s) of persons with more than a 10% equity, participation, or revenue interest: None Prepared by: __Diane Zanish_______________Title: ____Assistant Secretary______ Signature: ______________________________________ Date: ___03/09/2018__ Email: __________diane.zanish@tennantco.com___ Phone: ________763.513.1971_ FOR CITY USE ONLY: Bid/PO/Contract # ____________________________ Permit # ___________________________ Diane Zanish TENNANT SALES AND SERVICE COMPANY OFFICERS AND DIRECTORS Tennant Sales and Service Company Officers Richard H. Zay President and Chief Executive Officer 701 North Lilac Drive Minneapolis, MN 55422 Jeffrey L. Cotter Vice President, General Counsel and Secretary 701 North Lilac Drive Minneapolis, MN 55422 Thomas A. Stueve Vice President and Treasurer 701 North Lilac Drive Minneapolis, MN 55422 Michael J. Hoff Assistant Corporate Secretary 701 North Lilac Drive Minneapolis, MN 55422 Robert E. Stokes Assistant Corporate Secretary 701 North Lilac Drive Minneapolis, MN 55422 Kristin A. Stokes Assistant Corporate Secretary 701 North Lilac Drive Minneapolis, MN 55422 Liane M. Wong Assistant Corporate Secretary 701 North Lilac Drive Minneapolis, MN 55422 Diane A. Zanish Assistant Corporate Secretary 701 North Lilac Drive Minneapolis, MN 55422 Tennant Sales and Service Company Directors Name Business Address H. Chris Killingstad 701 North Lilac Drive Minneapolis, MN 55422 Thomas Paulson 701 North Lilac Drive Minneapolis, MN 55422 Jeffrey L. Cotter 701 North Lilac Drive Minneapolis, MN 55422 REFERENCE: Agreement NO. 10680 (CCS)