SUBJECT: REPORT ON OPEN PURCHASE ORDERS FOR SUPPLIES, MATERIALS, EQUIPMENT AND SERVICES FOR FY 2000-2001 #48

RECOMMENDATION

Approval of award of open purchase orders for supplies, materials, equipment, and services for FY 2000-2001 #48, 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 2000-2001. 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, competitive quotes 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 $75,000 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, 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.

FRANCIS B. MCVEY

Acting Director, General Services Department

ITEMS/SERVICES DEPARTMENT	RECOMMENDED VENDOR/ LOCATION	REQUESTED AWARD	PRIOR BALANCE	SOURCE OF FUNDING AND BUDGET PAGE
Guard Railings & Energy Attenuator Repairs For: DOT	Coll-Dallas Enterprises San Martin, CA	$150,000		Construction Excise Tax Fund-465 2000-01 Adopted Operating Budget, Page 351
Establish an open purchase order for the period June 15, 2001 through June 14, 2002 for miner repairs of guard rails, fencing, signage and concrete as needed for bridges. Contract is subject to the Living Wage Policy, with prevailing wage higher. Therefore, prevailing wage will be paid. Exercising option to renew.
Copy Paper For: GS/Stores	Xpedx, Inc. Hayward, CA	$35,000	$204,000	Store Fund-001 2000-01 Adopted Operating Budget, Page 792
The additional encumbrance of $35,000 to the existing purchase order of $204,000 is required as usage is greater than originally anticipated.
Hydrogen Peroxide For: ESD/WPC	US Peroxide, Inc. Laguna Niguel, CA	$200,000		SJ/SC Treatment Plant Operating Fund - 513 2000-01 Adopted Operating Budget Pg 136
Establish an Open Purchase Order for the period 6/26/01 through 6/25/02 for the purchase of aqueous ammonia as required. Exercise of option.
Aqueous Ammonia For: ESD/WPC	Hill Bros. Chemical Company SJ CA	$170,000		SJ/SC Treatment Plant Operating Fund - 513 2000-01 Adopted Operating Budget Pg 136
Establish an Open Purchase Order for the period 6/26/01 through 6/25/02 for the purchase of aqueous ammonia as required.
Fuel For: GS/Fleet	Valley Oil Mountain View, CA	$300,000	$2,237,000	Vehicle Maintenance & Operations Fund - 552 2000-01 Adopted Op Budget pg 240
The additional encumbrance of $300,000 to the original Purchase Order of $2,237,000 is required as this vendor has consistently provided the lowest quote for gasoline, therefore, receiving most of the weekly orders.
Liquid Chlorine For: ESD/WPCP	Jones Chemicals Inc. Milpitas, CA	$800,000		SJ/SC Treatment Plant Operating Fund - 513 2000-01 Adopted Op Budget pg 136
Establish an Open Purchase Order for the period 6/15/01 through 6/15/02 for purchase of bulk liquid chlorine as needed.