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CC_10222024_REPORT_8a

Glendale City Council
October 22, 2024

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CC_10222024_REPORT_8a
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October 22, 2024
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Glendale City Council
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Text extracted from the city's file for reading and search. Open the original on glendaleca.primegov.com. That file is the official record.

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24-86326

CITY OF GLENDALE, CALIFORNIA

REPORT TO THE CITY COUNCIL

AGENDA ITEM
Report: Request to Dispense with Competitive Bidding and Authorize a Purchase Order for up to Three Years for Eligible Employees as Defined by Their Respective MOUs.

1. Resolution to Dispense With Competitive Bidding for Safety Footwear and Authorize the Execution of a Purchase Order for up to Three Years, renewable by year, to the Red Wing Shoe Company for a not-to-exceed amount of $341,675.

COUNCIL ACTION
Item Type: Action Item
Approved for October 22, 2024 calendar

EXECUTIVE SUMMARY
This report requests City Council approval to waive the competitive bidding process and authorize a three-year Purchase Order with Red Wing Shoe Company, totaling up to $341,675, to provide safety footwear for eligible employees as outlined in the MOUs with GCEA, GMA and IBEW. Following a thorough review of alternative vendors, staff concluded that no other companies meet the City’s required standards. The partnership with Red Wing, established in 2012, continues to deliver high-quality footwear and an efficient online management system, serving between 354 and 403 employees annually. The costs for the first year are covered by the Department’s current budget, while expenses for the subsequent years will be allocated in the FY 2025/26 to FY 2026/27 budgets.
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RECOMMENDATION
That the City Council waive the competitive bidding process and authorize the City Manager, or their designee, to execute a Purchase Order for safety footwear for eligible employees, renewable annually for up to three years, with a total amount not-to-exceed $ 341,675.

ANALYSIS
Cal/OSHA requires employers to ensure that employees exposed to risks of foot injuries, such as crushing, penetrating, or other hazards wear protective safety footwear. This requirement is outlined in the MOUs for GCEA, GMA, and IBEW under the “Safety Boot Issuance” section. The costs for the first year are included within the Department’s current budget, while future costs will be incorporated into FY 2025/26 and FY 2026/27 budgets. The City Council previously approved this in Resolution No. 19-27, dated March 26, 2019.

Staff has conducted extensive research and determined that no other company offers the comprehensive online management system for streamlined distribution, tracking, and reporting that Red Wing provides. Additionally, alternative companies lack the combination of in-store services, mobile boot trucks, and online shopping options that give employee flexible purchasing choices. Continuing the partnership with Red Wing will sustain high service standards, enhance employee satisfaction, and maintain operational efficiency. Our findings confirm that Red Wing remains the most effective and efficient choice, as no other vendor meets these requirements.

The number of eligible employees each year is listed below. Total cost = number of eligible employees × $175.00 for GMA, and number of employees x $300.00 for IBEW and GCEA
Number of Eligible Employees
Year Annually Every 2
Years
Every 3
Years Total Total Cost
Year 1 354 34 388
$131,700
(includes 3 mo.
from 2024)
Year 2 354 49 403 $109,275
Year 3 354 354 $100,700
TOTALS 1,145 $341,675
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STAKEHOLDERS/OUTREACH
Staff engaged with key stakeholders, including representatives from GCEA, GMA, and IBEW, to ensure alignment with employee needs and MOU requirements. Feedback was collected regarding employee satisfaction with the current safety footwear program, with particular attention to product quality, accessibility and service. Discussions confirmed strong support for continuing the partnership with Red Wing Shoe Company, as it consistently meets the needs of eligible employees across various departments.

Additionally, outreach to department heads reinforced the importance of maintaining the existing system for its operational efficiency and ease of use.

FISCAL IMPACT
The Purchase Order for up to three years, renewable by year, to the Red Wing Shoe Company will cost a not-to-exceed amount of $341,675. The cost for year one is $131,700, which was included as a part of the FY 2024-25 budget. No new appropriation is being requested at this time. The City Council approved funding is outlined below.

Existing Appropriation
Amount Account String Funding Source
$131,700 45350-6140-HRD-5005 Compensation Insurance
Fund
The funding for the remaining two years will be requested as a part of the annual budget process.

ENVIRONMENTAL REVIEW (CEQA/NEPA)
This item is not subject to CEQA review.

CAMPAIGN DISCLOSURE
In compliance with City Campaign Finance Ordinance No. 5744, the following provides the names and business addresses of the board of directors, chairperson, CEO, COO, subcontractors, and any entities holding more than a 10% interest in the proposed contract referenced in this Agenda Item.

Officers of Red Wing Shoe Company, Inc.

Full Name Title Business Add. City State Zip
Allison
Gettings CEO/President 314 Main Street RedWing MN 55066 Brian Ross Executive Vice President/CFO 314 Main Street RedWing MN 55066 Sarah
Erickson
Executive Vice President / General
Council 314 Main Street RedWing MN 55066
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Mike Noonan Executive Vice President /CFO 314 Main Street RedWing MN 55066 Carrie Heimer Vice President, Chief Human
Resource Officer 314 Main Street RedWing MN 55066
Dennis Keane Vice President, Chief Information
Officer 314 Main Street RedWing MN 55066
Dave
Schneider
Vice President, Chief Marketing
Officer 314 Main Street RedWing MN 55066
Joel Watson Vice President, Chief Supply Chair
Officer 314 Main Street RedWing MN 55066
Kristen Kohn Senior Director Corporate Strategy
& Planning 314 Main Street RedWing MN 55066
Mike Van
Geothem
Vice President, Chief Services
Officer 314 Main Street RedWing MN 55066
Shawn
Sweeney
President, North America Work,
Hunt & Retail 314 Main Street RedWing MN 55066
Tito Warren President, Global Industrial 314 Main Street RedWing MN 55066 George
Curleigh President, Red Wing Heritage 314 Main Street RedWing MN 55066 Bryce
Wensman President, Outdoor 314 Main Street RedWing MN 55066

ALTERNATIVES TO STAFF RECOMMENDATION
Alternative 1: Renegotiate with employee associations to reinstate the previous model, allowing employees to receive a payroll allowance for purchasing their own safety footwear, as specified in their MOUs. While costs would remain the same, this approach could lead to reduced compliance with safety requirements.

Alternative 2: Initiate a new RFP process. Although costs would remain unchanged, this could result in lower service quality and decreased operational efficiency, as other vendors lack the comprehensive online management system offered by Red Wing for streamlined distribution, tracking, and reporting.

Alternative 3: The City Council may consider any other alternative not proposed by staff.

ADMINISTRATIVE ACTION
Submitted by:

Paula Adams, Chief Human Resources Officer
Prepared by:

Margaret Agus, Safety Administrator
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Approved by:

Roubik R. Golanian, P.E., City Manager

EXHIBITS/ATTACHMENTS
Resolution No. 19-27 on March 26, 2019.

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