SUBJECT: REPORT ON OPEN PURCHASE ORDERS FOR SUPPLIES, MATERIALS, EQUIPMENT AND SERVICES FOR FY 2002-2003 #29

RECOMMENDATION

Approval of award of open purchase orders for supplies, materials, equipment and services for FY 2002-2003 #29 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 2002-2003. 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, General Services Department

ITEMS/SERVICES DEPARTMENT	RECOMMENDED VENDOR/ LOCATION	REQUESTED AWARD	PRIOR BALANCE	SOURCE OF FUNDING AND BUDGET PAGE
Trucking services For the Department of Transportation	San Jose Transport Gilroy, CA	$340,410		General Fund – 001 2003-2003 Adopted Operating Budget, Page 598
Establish an open service order for the term beginning April 1, 2003 through March 31, 2004 in the amount of $340,410. This service order provides for trucking services for the delivery of asphalt for street maintenance operations. This requirement was competitively quoted; San Jose Transport provided the low bid. OEA: #6184, Living Wage/Prevailing Wage with Prevailing Wage Higher. CEQA: Not a project. Cost Implication: General Principles #2, “We must focus on protecting our vital core city services.”
Debris removal For the Department of Transportation	San Jose Transport Gilroy, CA	$255,260		General Fund – 001 2003-2003 Adopted Operating Budget, Page 598
Establish an open service order for the term beginning April 1, 2003 through March 31, 2004 in the amount of $255,260. This service order provides for trucking services to remove street debris for street maintenance operations. The requirement was competitively quoted; San Jose Transport provided the low bid. OEA: #6183, Living Wage/Prevailing Wage with Prevailing Wage Higher. CEQA: Not a project. Cost Implication: General Principles #2, “We must focus on protecting our vital core city services.”
Power washing services for the Department of Transportation	Pro Sweep, Inc. San Jose, CA	$116,000		General Purpose Parking Fund- 533 2002 – 2003 Adopted Capital Budget, Page 635
Establish an open service order in the amount of $116,000 for the term beginning April 8, 2003 through February 28, 2004. This open service order provides all labor and materials to power-wash City of San Jose parking garage facilities including, but not limited to Third Street, Market Street, Second and San Carlos and Fourth Street. This request is to execute the first of three, one-year options. This requirement was competitively quoted; Pro Sweep provided the low bid. OEA#: 6211, Living Wage/Prevailing Wage with Prevailing Wage higher. CEQA: Exempt, PP-03-080. Cost implication: General Principles #2, “We must focus on protecting our vital core city services.”

ITEMS/SERVICES DEPARTMENT	RECOMMENDED VENDOR/ LOCATION	REQUESTED AWARD	PRIOR BALANCE	SOURCE OF FUNDING AND BUDGET PAGE
Auto body repairs for the Department of General Services	Flyers Body Shop San Jose, CA	$102,000	$95,000	Vehicle Maintenance and Operations Fund –552 2002 – 2003 Adopted Operating Budget, Page 290
Additional encumbrance in the amount of $102,000 to the existing service order of $95,000. This service order provides labor and services for auto body repairs and painting for Fleet Management. This is one of three vendors used for auto body repairs. Vendors quote on repairs as they occur. Flyer's has consistently been the lowest quote on a majority of work. The additional amount is necessary to accommodate the estimated use until the term of the agreement. The unanticipated increase in usage is due to higher incidence of accidents and adverse weather conditions, which increases the number of patrol vehicles in use. OP# 30848, OEA: N/A- Automotive CEQA: Not a project. Cost Implication: General Principles #2, “We must focus on protecting our vital core city services.”
Rental of asphalt grinder for the Department of Transportation	ABSL Construction, Inc. Hayward, CA	$146,610		Construction Excise Tax Fund – 465 2002-2003 Adopted Capital Budget, Page 820
Establish an open service order in the amount of $146,610 for the term beginning April 1, 2003 through March 31, 2004. This open service order provides for the rental of an asphalt grinder and labor for an operator if the City is unable to provide one. This requirement was competitively quoted; ABSL provided the low bid. Street maintenance operations for DOT. OEA: #6185, Living Wage/Prevailing Wage with Prevailing Wage Higher. CEQA: Not a project. Cost Implication: General Principles #2, “We must focus on protecting our vital core city services”.