City Council Memorandum
TO: HONORABLE MAYOR AND CITY COUNCIL DATE: SEPTEMBER 6, 2022 FROM: PUBLIC WORKS DEPARTMENT WARDS: ALL
SUBJECT: FIRST AMENDMENT TO SERVICES AGREEMENT FOR CITYWIDE BOTTLED DRINKING WATER AND RELATED SERVICES WITH DS SERVICES OF AMERICA, INC., DBA PRIMO WATER NORTH AMERICA OF ATLANTA, GEORGIA, EXTENDING THE TERM TO JUNE 30, 2023 AND INCREASING COMPENSATION BY $35,000 FOR A TOTAL CONTRACT AMOUNT OF $65,000 ISSUE:
Approve the First Amendment to Services Agreement for Citywide Bottled Drinking Water and Related Services with DS Services of America, Inc., dba Primo Water North America of Atlanta, Georgia, extending the term to June 30, 2023 and increasing compensation by $35,000 for a total contract amount of $65,000.
RECOMMENDATIONS:
That the City Council:
Approve the First Amendment to Services Agreement for Citywide Bottled Drinking Water and Related Services with DS Services of America, Inc., dba Primo Water North America, extending the agreement for a one-year term to June 30, 2023 and increasing compensation in the amount of $35,000 for a total contract amount of $65,000; and Authorize the City Manager, or designee, to execute the First Amendment to Services Agreement including making minor and non-substantive changes.
BACKGROUND:
The City of Riverside has multiple Departments that require bottled drinking water and related services, including but not limited to Community & Economic Development; Finance; General Services; Innovation & Technology (IT); Parks, Recreation and Community Services (PRCS); Police; City Attorney’s Office and Public Works. Historically, individual divisions within individual departments have requested their own purchase orders and agreements for bottled water with unique pricing based on their respective needs.
DISCUSSION:
In 2019, the Finance Department’s Purchasing Division began identifying services spread across multiple divisions/departments that could be combined into a single agreement for potential cost savings. In March of 2021, Invitation to Bid No. 7833 for Citywide Bottled Drinking Water and Related Services was posted by Purchasing. The bid opportunity was sent to a total of 523 registered users on Planet Bids, and all vendors providing bottled drinking water services to the City at that time were notified of the bid opportunity. Four bids were received when bidding closed on April 7, 2021, which included bids from companies providing bottled drinking water services to the City at that time. The bid was awarded to DS Services of America, Inc., dba Primo Water North America (DS Services) who was deemed the lowest responsive and responsible bidder.
On July 13, 2021, the City of Riverside entered into a Services Agreement for Citywide Bottled Drinking Water and Related Services with DS Services of America, Inc., dba Primo Water North America through June 30, 2022. Bid No. 7833 stated that the agreement could be extended for up to four additional one-year terms for a total of five years of service. The original agreement was set for a one-year duration to provide a testing period for the citywide service agreement rather than individual purchase orders by division within the City. That testing period was successful, with multiple divisions and departments switching to the agreement immediately and additional departments showing interest in switching due to decreased pricing rather than maintaining their own pricing and individual purchase orders.
DS Services has provided bottled drinking water services in an acceptable manner under the terms of the agreement for the General Services, Finance, IT, Police, PRCS, and Public Works Departments. The City would like to extend the agreement through Fiscal Year 2022/23 based on availability of budgeted funds within each requesting department for an amount not to exceed $35,000.
The Purchasing Manager concurs that the recommendation to approve the amendment complies with Purchasing Resolution 23812.
STRATEGIC PLAN ALIGNMENT:
This item contributes to Strategic Priority 5 - High Performing Government and Goal 5.5 – Foster a culture of safety, well-being, resilience, sustainability, diversity, and inclusion across the city organization.
This item aligns with each of the five Cross-Cutting Threads as follows:
Community Trust – This item is being presented for City Council review for transparency to the community and in accordance with the City’s purchasing policy.
Equity – This agreement provides bottled water services at multiple city-operated facilities located across the City.
Fiscal Responsibility – Combining bottled water services onto one purchase order improves pricing and supports the city’s efforts to minimize inefficiencies and maximize reliability.
Innovation – The bottled water vendor upholds standards of quality, taste, purity, service, and value. All waters exceed all Federal, State and County water quality standards.
Sustainability & Resiliency – Ensuring drinking water is available to all city employees and visitors promotes sustainability.
FISCAL IMPACT:
The total fiscal impact of this action is $35,000. Sufficient funds are budgeted and available in Fiscal Year 2022/23 in the following accounts:
Fund
Department/Division
Account Number
General Fund
General Services – Building Services
2210000-421000
General Services – Building Services
2210000-424130
Finance – Administration
2300000-425400
Finance – Accounting
2305000-425400
IT – Administration
2400000-426800
Police – Support Services
3102000-426800
Police – Administrative Services
3105000-426800
Public Works – Streets Maintenance
4110100-425400
Public Works – City Engineering
4115000-425400
PRCS – Administration
5200000-426800
PRCS – Parks
5215000-424130
PRCS – Parks
5215000-426800
Sewer Fund
Public Works – Sewer Systems - Treatment
4125200-426800
Public Works – SCADA & SPL
4125420-425400
Public Works – Capital Engineering Services
4125900-425400
Public Works – Plant Construction Support
4125910-425400
Refuse Fund
Public Works – Solid Waste Collection
4130100-425400
Prepared by: Gilbert Hernandez, Public Works Director
Certified as to
availability of funds: Edward Enriquez, Interim Assistant City Manager/Chief Financial Officer/Treasurer
Approved by: Kris Martinez, Assistant City Manager
Approved as to form: Phaedra A. Norton, City Attorney
Attachment: First Amendment to Services Agreement
First Amendment to Agreement for Bottled Water Services with DS Services of America, Inc. ● Page 3