SR 05-22-2018 3A
City Council
Report
City Council Meeting: May 22, 2018
Agenda Item: 3.A
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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
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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
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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
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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
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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)