SUBJECT: REPORT ON OPEN PURCHASE ORDERS FOR SUPPLIES, MATERIALS, EQUIPMENT AND SERVICES FOR FY 2002-2003 #31

RECOMMENDATION

Approval of award of open purchase orders for supplies, materials, equipment and services for FY 2002-2003 #31 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
Purchase of seal coat aggregate for the Department of Transportation	Granite Rock-Aromas Watsonville, CA	$307,500		General Fund – 001 2002-2003 Adopted Operating Budget, Page 598
Establish an open purchase order in the amount of $307,500 for a term beginning May 14, 2003 to March 31, 2004. This contract is for the purchase of seal coat aggregate material for the Residential Street Maintenance Program. Granite Rock-Aromas is the only quarry in this area that will manufacture the required rock to City Specifications; therefore this requirement is a Sole Source recommendation. OEA: N/A CEQA: PP 03-04-105. Cost Implication: General Principles #2, “ We must focus on protecting our vital core city services.”
Street marking services for the Department of Transportation	Safety Striping, Inc. Goshen, CA	$157,135		Construction Excise Tax Fund – 465 2002-2003 Adopted Capital Budget Page 820
Establish an open service order in the amount of $157,135 for a term beginning May 14, 2003 to March 31, 2004. This contract is to provide all labor, materials and equipment necessary for the installation of striping and marking and the removal and installation of pavement markers for the Residential Street Maintenance Program. This requirement was competitively quoted; Safety Striping, Inc. provided the lowest responsive quote. OEA: Living Wage /Prevailing Wage with Prevailing Wage higher. CEQA: PP 03-04-105. Cost Implication: General Principles #2, “We must focus on protecting our vital core city services.”
Sidewalk concrete services for the Department of Transportation	Valley Concrete and Redwood San Jose, CA	$100,000	300,000	General Fund – 001 2002-2003 Adopted Operating Budget, Page 598
The additional encumbrance of $100,000 to the existing open service order of $300,000 is required to provide labor, material and equipment for sidewalk removal and replacement. These services are for property owners eligible to participate in the Sidewalk Repair Program. The additional amount requested is estimated to accommodate the demand for services for the fiscal year. OEA: #5334, N/A CEQA: Not a project. Cost Implication: General Principles #2, “We must focus on protecting our vital core city services.” OP#31201
ITEMS/SERVICES DEPARTMENT	RECOMMENDED VENDOR/ LOCATION	REQUESTED AWARD	PRIOR BALANCE	SOURCE OF FUNDING AND BUDGET PAGE
Parking garage security services for the Department of Transportation	Omni Patrol, Inc. San Jose, CA	$66,000	$300,000	General Purpose Parking Fund –533 2002-2003 Adopted Operating Budget, Page 598
The additional encumbrance of $66,000 to the existing open service order of $300,000 is required to adjust the service order to accommodate the security requirements for an additional parking garage that opened in January. This garage is located at 44 South 4^th Street and requires 24-hour security services. OEA: Living Wage. CEQA: Not a project. Cost Implication: General Principles #2, “We must focus on protecting our vital core city services.” OP#31170
Security services for the Department of General Services	Industrial Protection Services San Jose, CA	$41,187.85	$65,000	General Fund – 001 2002-2003 Adopted Operating Budget, Page 290
The additional encumbrance of $41,187.85 to the existing open service order of $65,000 is required to accommodate higher than anticipated usage due to security measures implemented at City Hall. This open service order was established by a second year option to renew. The additional funding is estimated to cover services need through the fiscal year. OEA: Living Wage. CEQA: Not a project. Cost Implication: General Principles #2, “We must focus on protecting our vital core city services.” OP#31228
Citywide printing services for the Department of General Services	Mahoney Print Services Santa Clara, CA	$110,000	$90,000	Citywide – Various Funds and Budgets 2002-2003 Adopted Operating Budget
The additional encumbrance of $110,000 to the existing service order of $90,000 is required to accommodate Citywide department printing and copy demands. This open service order was established by a second year option to renew. OEA: N/A. CEQA: Not a project. Cost Implication: General Principles #2, “We must focus on protecting our vital core city services.” OP#31958
ITEMS/SERVICES DEPARTMENT	RECOMMENDED VENDOR/ LOCATION	REQUESTED AWARD	PRIOR BALANCE	SOURCE OF FUNDING AND BUDGET PAGE
Purchase of tires for the Department of General Services	Dapper Tire Company Hayward, CA	$90,000	$100,000	Vehicle Maintenance and Operations Fund – 552 2002-2003 Adopted Operating Budget, Page 290
The additional encumbrance of $90,000 to the existing open purchase order of $100,000 is required to accommodate the projected need for the fiscal year for the Fleet Maintenance Division. The City is standardized on Goodyear Tires and this requirement was quoted for Goodyear government pricing. OEA: N/A CEQA: Not a project. Cost Implication: General Principles #2, “We must focus on protecting our vital core city services.” OP#31182