SUBJECT: REPORT ON OPEN PURCHASE ORDERS FOR SUPPLIES, MATERIALS, EQUIPMENT AND SERVICES FOR FY 2002-2003 #32

RECOMMENDATION

Approval of award of open purchase orders for supplies, materials, equipment and services for FY 2002-2003 #32 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
Radio/cellular service for the Department of Information Technology	Nextel Communications Orange, CA	$45,000	$170,000	Citywide- Various funds and budgets 2002-2003 Adopted Operating Budget
Encumber an additional amount of $45,000 to the existing open service order of $170,000. The additional amount is estimated to cover cellular and radio service needs for departments Citywide through the end of the fiscal year. OEA: N/A CEQA: Not a project. Cost Implication: General Principles #2, “We must focus on protecting our vital core city services.” OP#31450
Purchase of parts and equipment for the Department of Information Technology	Motorola CE, Inc. Pasadena, CA	$10,000	$130,000	General Fund - 001 2002-2003 Adopted Operating Budget, Page 356
The additional encumbrance of $10,000 to the existing open service order of $130,000 is required for the purchase of Motorola electronic parts and equipment. The additional amount requested is estimated to accommodate the demand for this product through the fiscal year. OEA: N/A CEQA: Not a project. Cost Implication: General Principles #2, “We must focus on protecting our vital core city services.” OP#31100
Publication services for the Department of the City Clerk	San Jose Mercury News San Jose, CA	$75,000	$250,000	Various Funds and Budgets 2002-2003 Adopted Operating Budgets
The additional encumbrance of $75,000 to the existing open service order of $250,000 is required for publications of legal notices as mandated by the City Charter for public notification. The additional amount is estimated to accommodate services through the fiscal year. OEA: N/A CEQA: Not a project. Cost Implication: General Principles #2, “We must focus on protecting our vital core city services.” OP#30987

ITEMS/SERVICES DEPARTMENT	RECOMMENDED VENDOR/ LOCATION	REQUESTED AWARD	PRIOR BALANCE	SOURCE OF FUNDING AND BUDGET PAGE
Transportation of seal coat aggregate for the Department of Transportation	Pires Trucking, Inc. Gilroy, CA	$214,000		Construction Excise Tax Fund –465 2002-2003 Adopted Capital Budget, Page 820
Establish an open service order in the amount of $214,000 for the term beginning May 20, 2003 through March 31, 2004. This order provides for the transportation of seal coat aggregate for DOT’s Street Maintenance Program. This requirement was competitively quoted; Pires Trucking, Inc., was the low bidder. OEA: #6179, Prevailing Wage / Living Wage with Prevailing Wage Higher. CEQA: Exempt, PP03-04-105. Cost Implication: General Principles #2, “We must focus on protecting our vital core city services.”