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CC - CONSENT: Approval of Amendments to the Purchase Orders with Napa Auto Parts ($30,000), Sonsray Fleet Services ($40,000) and Waxie Sanitary Supply ($50,000) for an Additional Aggregate Amount of $120,000 in Fiscal Year 2023-2024.
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Meeting Date: January 8, 2024
Contact Person/Dept.: Elizabeth Shavelson/Finance Department
Phone Number: (310) 253-6018
Fiscal Impact: Yes [X] No [] General Fund: Yes [] No [X]
Attachments: Yes [] No [X]
Public Notification: (E-Mail) Meetings and Agendas - City Council (1/03/2024)
Department Approval: Lisa Soghor, Chief Financial Officer (12/23/2023)
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RECOMMENDATION
Staff recommends the City Council approve amendments to the purchase orders with Napa Auto Parts ($30,000), Sonsray Fleet Services ($40,000) and Waxie Sanitary Supply ($50,000) for an additional aggregate amount of $120,000 in Fiscal Year 2023-2024.
BACKGROUND/ DISCUSSION
The City’s Central Stores Division supports the City operations, including parks, facility and fleet maintenance, with the purchase and storage of supplies, parts and equipment. Over the last few years, there have been significant shifts in the global supply chain and commercial sector. These shifts have increased prices and presented significant challenges to the procurement of supplies, parts, and equipment. Staff continues to monitor these changes for any potential budget and procurement impacts.
Central Stores seeks to provide all requested materials in a timely manner to support continuity of government services, proper maintenance of City parks and facilities, support essential fleet operations and minimize vehicle downtime. At the beginning of the fiscal year, the City established Purchase Orders with multiple vendors to provide essential supplies and materials based on historical information and anticipated demand. To support the City’s Equipment Maintenance and Fleet Services Division, Central Stores staff has had to rely more on certain vendors than originally anticipated to procure the necessary parts and equipment as expeditiously as possible. In Fiscal Year 2023-2024, Central Stores has had to depend more on Napa Auto Parts and Sonsray Fleet Services to provide quality parts with minimal lead-time. As a result, the City’s existing Purchase Orders with these two vendors need to be amended.
Per Culver City Municipal Code Section 3.07.055.B. bidding requirements are exempt “when equipment is a component for equipment or a system of equipment previously acquired by the City, and is necessary to repair, maintain or improve the City’s utilization of the equipment.” The purchase of vehicle replacement parts from Napa Auto Parts and Sonsray Fleet Services is therefore exempt from competitive bidding. Staff remains committed to securing quality products at competitive prices. To this end, the staff has secured competitive pricing from Napa Auto Parts through Sourcewell, a service cooperative created by the Minnesota legislature as a local unit of government that works to streamline the procurement process by developing requests for proposals and invitations for bids for national, competitive solicitations that meet or exceed local requirements. Sonsray is located in Southern California and is an authorized dealer of Thermo King which is the original equipment manufacturer of the air conditioning units on the City’s buses.
Additionally, the City’s use of supplies such a toilet paper and cleaning products provided by Waxie Sanitary Supply has increased. This procurement is exempt from formal bidding procedures per Culver City Municipal Code Section 3.07.055.G, which exempts bidding requirements where competitive bid procedures have already been utilized by the City, a public agency or joint powers agency, and the goods or supplies are supplied to the City at the same or better price. The University of California recently conducted a competitive procurement for janitorial supplies and equipment in conjunction with Omnia Partners and selected Waxie. The City is receiving goods from Waxie based on the terms on its contract with the University of California.
The City’s existing Purchase Orders with these three vendors need to be amended as detailed in the chart below.
These proposed increases exceed the City Manager’s purchasing authority of $50,000 per vendor per fiscal year; therefore, staff seeks City Council approval to amend the existing purchase orders with Napa Auto Parts, Sonsray Fleet Services and Waxie Sanitary Supply, as detailed in the chart above, for an additional aggregate amount of $120,000.
FISCAL ANALYSIS
There is sufficient funding in the Adopted Budget for Fiscal Year 2023-2024 in Account No. 31014600.600900 (Central Stores) for the increases in these three purchase orders in an aggregate amount of $120,000.
ATTACHMENTS
None.
MOTIONS
That the City Council:
1. Approve amendments to the purchase orders with Napa Auto Parts ($30,000), Sonsray Fleet Services ($40,000) and Waxie Sanitary Supply ($50,000) for an additional aggregate amount of $120,000 in Fiscal Year 2023-2024; and,
2. Authorize the Purchasing Officer to execute such purchase orders on behalf of the City.