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SR 08-14-2018 3F (2) City Council Report City Council Meeting: August 14, 2018 Agenda Item: 3.F 1 of 4 To: Mayor and City Council From: Gigi Decavalles-Hughes, Director, Finance Department, Revenue Subject: Extend Maintenance Agreements for the Big Blue Bus and Parking Meter Currency Counting Room Equipment Recommended Action Staff recommends that the City Council authorize the Purchasing Manager to issue the following change orders: 1. A change order to the purchase order #21900200 in the amount of $42,500 with Money System Technology, a Texas-based company, for the maintenance of two coin sorters/counters and conveyor belts used for currency counting operations. This will result in a revised estimated purchase order total of $83,000 over a ten- year period, with future year funding contingent on Council budget approval. 2. A change order to the purchase order #21900921 in the amount of $84,000 with Richard's Coin & Currency Counters, a California-based company, for the maintenance of various equipment for currency counting operations, and the purchase of replacement parts. This will result in a revised estimated purchase order total of $149,400 over a ten-year period, with future year funding contingent on Council budget approval. Summary The City of Santa Monica contracted with Money Systems Technology and Richard’s Coin & Currency Counters to purchase equipment and provide preventative maintenance and repair services for the counting room equipment. Both maintenance agreements are scheduled to expire on September 23, 2018. Staff recommends sole source blanket purchase orders with Money Systems Technology (MST) in the amount of $42,500 for a five-year term, and with Richard’s Coin and Currency in the amount of $69,000 to provide maintenance and repair services and an estimated $15,000 for the purchase of replacement parts for an estimated total of $84,000 for a five-year term for the counting room equipment. This would result in a revised additional five-year term for a total amount not to exceed $232,400. The cumulative amount for these two contracts has reached slightly over $587,963 since Richard’s Coin & Currency began providing these services in 1999. 2 of 4 Discussion The extension of the maintenance agreements is required to continue to provide preventative maintenance and repair services for proprietary equipment. Counting room operations provides currency and coin counting services for large volumes of cash - approximately $5.7 million annually from Big Blue Bus fare boxes and approximately $3.2 million annually from parking meters. According to SMMC 2.24.080 (d), the competitive bidding procedure is not applicable in instances where only one vendor possesses the unique ability or capability to meet the particular requirements of the solicitation. In this case, the compatibility of equipment for maintenance and repair services is necessary to prevent disruption of counting room operations. The agreement with MST includes two service appointments per month, labor, and limited parts to repair two MST coin sorters/counters and horizontal conveyors. The agreement excludes replacement parts such as coin plates, input board, horizontal conveyor belts, and coin bag scales. The agreement with Richard’s Coin & Currency includes all labor and parts pertaining to other ancillary equipment that is used for counting of Big Blue Box fare box revenue and coins from parking meters. Past Council Actions Between 1999 to 2013, purchase orders and requests for warrants amounting to an approximate total of $482,062 were approved under City Manager authority. In 2013, the Santa Monica Municipal Code 2.24.090 related to purchasing was updated to facilitate a more transparent purchasing process. The updated Code determined that vendor agreements in excess of $175,000 in cumulative purchases over multiple fiscal years are subject to Council approval. Since then, Council has approved requests for change orders as noted in the table below. 3 of 4 Meeting Date Description 09/24/13 (attachment A) Original Council approved sole-source purchase orders for Money Systems Technology and Richard’s Coin & Currency Counters. 08/25/15 (attachment B) Council approved extension of maintenance agreements with Money Systems Technology and Richard’s Coin & Currency Counters. Financial Impacts and Budget Actions Staff seeks authority to extend the maintenance agreements with Money Systems Technology and Richard’s Coin & Currency Counters to prevent disruption of counting room operations. Extension of Maintenance Agreements: Money Systems Technology & Richard's Coin & Currency Counters Blanket PO Vendor Current Authorized Amount Modified Request FY 2018-19 Budget Dept/CIP Account # Total Revised Contract Amount 21900200 Money Systems Technology $40,500.00 $42,500.00 01300006.529080 $83,000.00 21900921 Richard's Coin & Currency Counters $65,400.00 $84,000.00 C6004770.689000 $149,400.00 Total $232,400.00 Funds in the amount of $42,500 are available in the FY 2018-19 budget in the Finance Department and $84,000 in the FY 2018-19 Capital Improvement Program budget. Future year funding is contingent on Council budget approval. Prepared By: David Carr, Assistant City Treasurer Approved Forwarded to Council 4 of 4 Attachments: A. September 24, 2013 Staff Report (Web Link) B. August 25, 2015 Staff Report (Web Link) C. Richard's Coin and Currency Counters Oaks D. Money Systems Technology Oaks