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SR 04-11-2023 5B 205-003 / 205-008 / 506-003-07 City Council Report City Council Meeting: April 11, 2023 Agenda Item: 5.B 1 of 4 To: Mayor and City Council From: Rick Valte, Public Works Director, Public Works, Engineering and Street Services Subject: Award Purchase Order to One Source Distributors for Street Light Electrical Supplies Recommended Action Staff recommends that the City Council: 1. Adopt a finding of Categorical Exemption pursuant to Section 15301 (Existing Facilities), of the California Environmental Quality Act (CEQA) Guidelines; 2. Award Bid #SP2685-1 to One Source Distributors, a Delaware Corporation, for the purchase and delivery of streetlight electrical supplies for the Public Works Department; and 3. Authorize the Procurement Manager to issue a purchase order with One Source Distributors for Streetlight Electrical Supplies in the amount not to exceed $500,000 (for one year, with four additional one-year renewal options to extend at increases between 6% to 20%) for a total amount not to exceed $2,500,000, with future year funding contingent on Council budget approval. Summary The City of Santa Monica, Department of Public Works - Engineering and Street Services Division is responsible for maintaining approximately 7,150 City streetlights. Expenditures for streetlight repair supplies and parts are expected to increase over the next few years due to deferred maintenance prompted by the constraints in the City’s General Fund, increased vandalism, continued inflation, and global supply issues. Staff recommends that the City Council award the bid for the purchase of streetlight repair supplies and parts to One Source Distributors in an amount not to exceed $500,000 for one year, with four additional one-year renewal options to extend at increases between 5.B Packet Pg. 296 2 of 4 6% to 20%, which include anticipated cost escalations over the contract period. This would result in a five-year total amount not to exceed $2,500,000. Discussion The Engineering and Street Services Division responds to repair requests from the public and requests from the Fire and Police Departments for services such as emergency callouts. The division also coordinates with Southern California Edison for the repair of aging high voltage streetlights. Routine repair inspections are conducted for streetlights, electrical service cabinets, broken pull boxes, and other related city assets. Streetlight inspections and repairs have increased over the last calendar year due to a spike in copper wire theft incidents and vandalism. The City owns approximately 1,500 high-voltage streetlights and 107,000 linear feet of high-voltage circuits. These assets were built in the 1960s and were scheduled to be replaced prior to the pandemic. Maintaining these aging assets requires the purchase of replacement electrical parts. Typical supply purchases consist of replacement light poles, light fixtures, bulbs, pull boxes, electrical services cabinets, and other related hardware. The bulk of supply costs would go toward the purchase of light poles, which can range from $2,000 to $25,000 depending on the pole design. In 2022, there was a spike in copper wire theft and streetlight vandalism throughout the City, requiring more than $125,000 in copper wire replacement purchases. The wire theft incidents contributed to an increase in the frequency of inspections for streetlights, broken electrical service cabinets and pull boxes, and related City assets. The Division has implemented anti-theft measures such as epoxying (gluing) the lids of newly installed service cabinets and pull boxes, adding locks to existing service cabinets, and other theft-deterrent measures. In addition, the City has installed new low voltage streetlights and electrical vehicle chargers over the last five years, which has increased the Division’s need for spare replacement parts and related tools and hardware. The installation of new streetlights and increase in wire theft has caused an increase in the frequency of streetlight 5.B Packet Pg. 297 3 of 4 inspections and repairs, causing expenditures for streetlight repair supplies and parts to increase over the last few years. The cost for streetlight repair supplies and parts is expected to increase over the next five years due to global supply chain issues, high demand for raw materials such as copper, and other inflationary pressures. Vendor Selection Bidder Recommendation Best Bidder One Source Distributors Evaluation Criteria Price, previous experience, ability to deliver, quality of product, and compliance with City specifications. Municipal Code SMMC 2.24.180 Bid Data Date Posted Posted On Advertise In (City Charter & SMMC) Vendors Downloaded Date Publicly Opened 01/03/2023 City's Online Bidding Site Santa Monica Daily Press 8 01/27/2023 Best Bidder Justification City staff have worked with One Source Distributors for over eight years and they are a qualified vendor to support City operations and to provide electrial supplies and materials. The Submittal received represents the twelve most frequently purchased items and is competitively priced, compared with what the City is currently paying. Items include light poles, concrete boxes, lamps, and wire. One Source Distributors has previously delivered competitively priced, high quality supplies and parts to the City within the desired timeframe. This vendor is familiar with the City’s infrastructure and maintenance needs and requirements. Environmental Review The awards for electrical supply purchases are categorically exempt from the California Environmental Quality Act (CEQA) under Section 15301. Section 15301 of the CEQA State Guidelines provides Class 1 (existing facilities) exemption for projects that Submittals Received One Source Distributors $24,408.56 5.B Packet Pg. 298 4 of 4 consists of the operation, repair, maintenance, leasing, licensing, permitting, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of the existing or former use. The award for electrical supplies purchase order would not result in any modifications to existing facilities. The existing facilities would be maintained and repaired with replacement supplies and the award of the purchase order would not expand or materially change existing facilities or operations. Therefore, the project is categorically exempt as set forth in Section 15301 of the CEQA State Guidelines. Financial Impacts and Budget Actions Staff seeks authority to award a purchase order with One Source Distributors for the purchase of streetlight repair supply and parts. Funding will be included in the FY 2023- 25 Proposed Biennial Budget. Future year funding is contingent on Council budget approval. Purchase Order Request FY 2023-24 Request Amount Future Years Amount Account # Total Purchase Order Amount $490,000 $1,950,000 01500034.529400 $2,440,000 $10,000 $50,000 01500034.529050 $60,000 $500,000 $2,000,000 Total $2,500,000 Prepared By: Steven Hull, Principal Administrative Analyst Approved Forwarded to Council Attachments: A. One Source Distributors Oaks Initiative Form 5.B Packet Pg. 299 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 official from receiving,and a person or entity from conferring,specified personal benefits 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 for 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 information must be updated and supplied every 12 months. 5.B.a Packet Pg. 300 Attachment: One Source Distributors Oaks Initiative Form [Revision 1] (5535 : Award Bid #2685-1 Streetlight Electrical Supplies) 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 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 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 speci of a net value to the recipient of $10,000 in any 12- month period. Name(s) of persons or entities receiving public benefit: Name(s) of trustees, directors, partners, and officers: Name(s) of persons with more than a 10% equity, participation, or revenue interest: Prepared by: ____________________________Title: __________________________ Signature: ______________________________________ Date: ________________ Email: ____________________________________Phone: ____________________ FOR CITY USE ONLY: Bid/PO/Contract # ____________________________ Permit # ___________________________ –··§»•†›‹»•†˝¿·»› ææ ‚”»•†›‹»•†›–«ﬁ‰»…•›‹‰–‡ł ŒŁØ †»˝–«ﬁ‰»•›‹ﬁ•«‹–ﬁ›ß –'†»…§¿·•”–ﬁ†•¿»'‰–†‰ ¿‹‹»»ﬁ —ﬁ»›•…»†‹æ †…§¿ﬁ•†„ﬁ»¿›«ﬁ»ﬁ ··•›–†¿'ﬁ»§˚—•†¿†¿‰» ¿·•”–ﬁ†•¿»'‰–†‰ ˛–»ﬁ‹˘¿‡¿ﬁﬁ•¿ﬁ 5.B.a Packet Pg. 301 Attachment: One Source Distributors Oaks Initiative Form [Revision 1] (5535 : Award Bid #2685-1 Streetlight Electrical Supplies)