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CITY COUNCIL AGENDA ITEM NO. 4


Meeting Date: December 11, 2007

Subject/Title: Adopt a Resolution approving and authorizing the City Manager or designee to execute purchase orders, agreements, and other necessary documents required to perform work with vendors as backup to vendors with low bid.

Prepared by: Jim Gallegos, Streets Manager
Chris Ehlers, Deputy Director of Public Works

Submitted by: Bailey Grewal, Director of Public Works



RECOMMENDATION
Adopt a Resolution approving and authorizing the City Manager or designee to execute purchase orders, agreements, and other necessary documents required to perform work with vendors as backup to vendors with low bid.

PREVIOUS ACTION
On February 24, 2004 by Resolution No. 2004-40, City Council approved the amended Purchasing Policy No. 10-7.

On June 26, 2007 by Resolution 2007-150, City Council adopted the 2007/08 – 2008/09 Operating Budget for the City of Brentwood.

BACKGROUND
Purchasing Policy 10-7 Section 6.3.2.2 states that when procuring service items or goods which are standardized or of uniform quality, the award will be given to the lowest bid for items costing more than $50,000. Even though the current Policy does not state this requirement for purchases under $50,000, it has been staff’s interpretation of the Policy that the award be given to the lowest bid. The Policy does not authorize the opening of purchase orders with additional vendors to use as backup in the event the low bid is not able or available to perform the work.

Staff is requesting the ability to open additional purchase orders with vendors as backup for trucking services and certain materials such as asphalt and concrete. Occasionally, the low bid vendor for these materials has not been able to provide the product or service when needed. This is a concern especially for unscheduled urgent repairs.

There have been instances when staff has scheduled paving or concrete work, notified residents of the scheduled work, and the asphalt or concrete plant has had to shut down. Typically, the plant has shut down due to a break down, the inventory of product is exhausted, or they do not have trucks available for delivery; thus, the work must be rescheduled. It is the intent of staff to function as efficiently as possible while being fiscally responsible, to ensure public safety, and to serve its customers in a professional manner. To meet these standards it is necessary to have an option to use alternate vendors in the event the low bid is not able to provide the product or service.

A more urgent example of the need to use backup vendors would be a water main leak on a major thoroughfare or a pot hole that appears during a rain event. These are safety issues and require a quicker response from staff. The response time could be greatly extended due to product availability from asphalt and concrete plants. It is not uncommon for these plants to break and shut down at a moments notice. The asphalt and concrete industry is volatile by nature due to the processes required to deliver the finished product (i.e. rock crushers, kilns, boilers, conveyers, etc.). Although the equipment necessary to provide these materials is robust, it is very susceptible to breakdowns.

The ability to open blanket purchase orders with backup vendors will assist staff in being operationally efficient in scheduling and performing daily work by ensuring materials and services are available when needed. Council’s authorization provides a means for staff to utilize these backup vendors when needed and purchase orders will be issued in amounts that do not exceed the Council approved Public Works Operating and CIP budgets. Should the need arise to expend more than $50,000 with any backup vendor, staff will prepare a staff report for Council’s consideration. The Director of Public Works or designee will approve in advance the use of a backup vendor when the low bid vendor is not able to provide the product or service.

Public Works currently has purchase orders open with the lowest bid and is requesting additional, blanket purchase orders as follows:

Vendors
With Current PO’s (Low Bid) Vendors
Requested as Backup
Granite Construction (asphalt) Antioch Building Materials
Central Concrete (concrete) Antioch Building Materials
Hanson Aggregate (aggregate) Teichert Construction
Frank C. Alegre Trucking (trucking) F.T.G. Trucking
Von Euw & Nunes Trucking

The above listed vendors have been notified that they may be used as backup for goods and services, and have agreed to honor their prices as quoted.

FISCAL IMPACT
A budget amendment is not needed. Anticipated expenditures have been included in the approved 2007/08 and 2008/09 Public Works Operations and CIP budgets. At this time, expenditures to the backup vendors are not expected to exceed $50,000. Should the need arise to expend more than $50,000 with any backup vendor, staff will prepare a staff report for Council’s consideration prior to authorizing work or purchasing materials.

Attachments:
• Resolution with Exhibit “A” – List of low bid vendors and backup vendors
• Bid Tabulations

RESOLUTION NO. _____

ADOPT A RESOLUTION APPROVING AND AUTHORIZING THE CITY MANAGER OR DESIGNEE TO EXECUTE PURCHASE ORDERS, AGREEMENTS, AND OTHER NECESSARY DOCUMENTS REQUIRED TO PERFORM WORK WITH VENDORS AS BACKUP TO VENDORS WITH LOW BID.


WHEREAS, staff is requesting the ability to open additional, blanket purchase orders with vendors as backup to vendors with low bid for trucking services and certain materials such as asphalt and concrete; and

WHEREAS, the low bid vendor for these materials occasionally has not been able or available to provide the product or service; and

WHEREAS, on February 24, 2004 by Resolution No. 2004-40, City Council approved the amended Purchasing Policy No. 10-7; and

WHEREAS, the Policy currently does not authorize the opening of purchase orders with additional vendors to use as backup in the event the low bid is not able or available to perform the work; and

WHEREAS, it is the intent of staff to function as efficiently as possible while being fiscally responsible, ensure public safety, and to serve its customers in a professional manner; and

WHEREAS, Council’s authorization provides a means for staff to utilize these backup vendors when needed and purchase orders will be issued in amounts that do not exceed the Council approved Public Works Operating and CIP budgets; and

WHEREAS, vendors listed in Exhibit “A” have been notified that they may be used as backup for goods and services, and have agreed to honor their prices as quoted; and

WHEREAS, the Director of Public Works or designee will approve in advance the use of a backup vendor when the low bid vendor is not able to provide the product or service; and

WHEREAS, on June 26, 2007 by Resolution 2007-150, City Council adopted the 2007/08 – 2008/09 Operating Budget for the City of Brentwood; and

WHEREAS, a budget amendment is not needed and the anticipated expenditures have been included in the approved 2007/08 and 2008/09 Public Works Operations and CIP budgets; and

WHEREAS, expenditures to the backup vendors are not expected to exceed $50,000 at this time, should the need arise to expend more than $50,000 with any backup vendor, staff will prepare a staff report for Council’s consideration prior to authorizing work or purchasing materials.


NOW, THEREFORE BE IT RESOLVED that the City Council of the City of Brentwood does hereby approve and authorize the City Manager or designee to execute purchase orders, agreements, and other necessary documents required to perform work with the vendors listed in Exhibit “A” as backup to vendors with low bid.

PASSED, APPROVED AND ADOPTED by the City Council of the City of Brentwood at a regular meeting held on the 11th day of December 2007 by the following vote:




EXHIBIT “A”



Vendors
With Current PO’s (Low Bid) Vendors
Requested as Backup
Granite Construction (asphalt) Antioch Building Materials
Central Concrete (concrete) Antioch Building Materials
Hanson Aggregate (aggregate) Teichert Construction
Frank C. Alegre Trucking (trucking) F.T.G. Trucking
Von Euw & Nunes Trucking


 
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