To: HONORABLE MAYOR AND From: Jose Obregon

CITY COUNCIL

Subject: SEE BELOW Date: November 24, 2003

SUBJECT: REPORT ON OPEN PURCHASE ORDERS FOR SUPPLIES, MATERIALS, EQUIPMENT AND SERVICES FOR FY 2003-2004 #8

RECOMMENDATION

Approval of award of open purchase orders for supplies, materials, equipment and services for FY 2003-2004 #8 and authorization for the Director of General Services to execute the purchase orders.

BACKGROUND

This standard memorandum is provided as a cover sheet to an attached list of requests received by the General Services Department/Purchasing Division for open purchase orders. This list indicates the most current requests submitted by various City departments for the establishment of open purchase orders or an increase in the amount of an existing open purchase order for supplies, materials, equipment and services for Fiscal Year 2003-2004. Open purchase orders are used when the amount or nature of the items or services cannot be predicted before they are needed, or when it is necessary that the place from which the items or services are purchased is strategically located.

Pursuant to Sections 4.12.135, 4.12.146 and 4.13.040 of the Municipal Code, competitive quotes or proposals are obtained whenever practicable on all items or services with a payment amount exceeding Five Thousand Dollars ($5,000). Unless otherwise noted, most advantageous price quotations were used to establish all open purchase orders on the attached list. Formal bidding is not required to establish open purchase orders regardless of the total dollar amount; however, General Services/Purchasing does bid some items when feasible. Formal bids are noted on the attachment when applicable.

The attachment may also include open purchase orders for contracts subject to the Living Wage Policy adopted by the Council on November 17, 1998. The policy pertains to contracts exceeding $20,000 and for designated service categories. The Policy also requires a review of the employee work environment (Third Tier Review). The attachment will indicate each purchase that is subject to the Living Wage and any additional information used by staff in making the recommendation.

ANALYSIS

All open purchase orders, which are expected to have an accumulative total of purchases exceeding $100,000 during the fiscal year, are presented for Council approval. A list of the new or increased open purchase orders is attached. The attached list includes brief explanatory comments on the items and services.

COORDINATION

Each purchase order request on the attached list has been coordinated with the City Attorney’s Office; City Manager’s Budget Office and the requesting City department.

PUBLIC OUTREACH

All purchase order requests, which require solicitation of quotations or bids, are advertised on the City’s Internet site.

CEQA

See attachment for CEQA determinations

JOSE OBREGON

Director of General Services

ITEMS/SERVICES DEPARTMENT	RECOMMENDED VENDOR/ LOCATION	REQUESTED AWARD	PRIOR BALANCE	SOURCE OF FUNDING AND BUDGET PAGE
Hydrogen products for the Environmental Services Department/Water Pollution Control Plant	U.S. Peroxide, Inc. Laguna Niguel, CA	$2,851.33	$250,000	SJ-SC Treatment Plant Operating Fund –513 2003-2004 Proposed Operating Budget, Page 191
Encumber an additional amount of $2,851.53 to the existing purchase order in the amount of $250,000. This purchase order is for the purchase of hydrogen peroxide and performance of odor control service. The additional amount is required to accommodate usage through the term of the purchase order ending 11-29-03. OEA: N/A, CEQA: Not a project. Cost Implication: General Principles #2, “We must focus on protecting our vital core city services.” OP#31911
Hardware maintenance support for the Environmental Services Department/Water Pollution Control Plant	ABB Automation, Inc. Wicklisse, OH	$130,000	$100,000	SJ-SC Treatment Plant Operating Fund –513 2003-2004 Proposed Operating Budget, Page 191
Encumber an additional amount of $130,000 to the existing service order in the amount of $100,000. This original service order was created to provide maintenance for the Plant’s Distributed Control System. The additional encumbrance is required to expand the scope of the open service order to include maintenance for Variable Frequency Drives. OEA: #6817, Prevailing Wage Policy. CEQA: Not a project. Cost Implication: General Principles #2, “We must focus on protecting our vital core city services.” OP#33282
Hydrogen products for the Environmental Services Department/Water Pollution Control Plant	U.S. Peroxide, Inc. Laguna Niguel, CA	$310,000		SJ-SC Treatment Plant Operating Fund –513 2003-2004 Proposed Operating Budget, Page 191
Establish an open purchase order in the amount of $310,000 for the term beginning 12-17-03 through 12-16-04. This purchase order is for the purchase of hydrogen peroxide and performance of odor control service. Last option year to renew. OEA: N/A. CEQA: Exempt PP03-11-360. Cost Implication: General Principles #2, “We must focus on protecting our vital core city services.”