City Council Memorandum
TO: HONORABLE MAYOR AND CITY COUNCIL DATE: APRIL 18, 2023 FROM: GENERAL SERVICES WARD: 6
SUBJECT: MEASURE Z – PURCHASE OF FOUR 30-TON REPLACEMENT HEATING, VENTILATION AND AIR CONDITIONING UNITS FOR THE MAGNOLIA POLICE STATION FROM RUSSELL SIGLAR, INC. OF RIVERSIDE, CALIFORNIA IN THE AMOUNT OF $213,092.40 PURSUANT TO PURCHASING RESOLUTION 23914 SECTION 602 (f); ADOPT RESOLUTION TO WAIVE COMPETITIVE BIDDING PURSUANT TO CHARTER SECTION 1109 ISSUE:
Approve the purchase of four 30-ton replacement heating, ventilation and air conditioning units for the Magnolia Police Station from Russell Siglar, Inc. of Riverside, California, in the amount of $213,092.40 pursuant to Purchasing Resolution 23914, Section 602 (f) and adopt a resolution waiving competitive bidding pursuant to Charter section 1109.
RECOMMENDATIONS:
That the City Council:
Approve the purchase of four 30-ton replacement heating, ventilation and air conditioning units for the Magnolia Police Station from Russell Siglar, Inc. of Riverside, California, in the amount of $213,092.40 pursuant to Purchasing Resolution 23914, Section 602 (f); and By at least five affirmative votes, adopt a resolution waiving competitive bidding pursuant to City Charter section 1109 under the City forces exception.
BACKGROUND:
Four aging heating, ventilation and air conditioning (HVAC) units at the Magnolia Police Station have been in service since 2004 and are in need of immediate replacement. The units have exceeded their 15-year service life expectancy and replacement parts are increasingly difficult to obtain. In addition, the units are not energy efficient and are costly to operate.
DISCUSSION:
Russell Siglar, Inc. holds Sourcewell Cooperative Contract #070121-CAR (formerly known as the National Joint Powers Alliance or NJPA). Sourcewell uses cooperative contract purchasing to leverage the national purchasing power of more than 50,000 member agencies, while also streamlining the required purchasing process. Sourcewell Contract #070121-CAR is currently valid until August 12, 2025. The cooperative purchasing contract has been competitively bid nationally and meets the City’s procurement requirements under Purchasing Resolution 23914, Section 602 (f) which provides that competitive procurement through the formal and informal procurement process shall not be required when cooperative purchasing is available and undertaken, or when goods can be obtained through Federal, State and/or other public entity pricing contracts or price agreements.
The Purchasing Manager concurs that the recommendation to approve the purchase complies with Purchasing Resolution 23914.
Installation
City Charter Section 1109 provides, “The City Council, without advertising for bids, or after rejecting bids, or if no bids are received, may declare and determine that, in its opinion, based on estimates approved by the City Manager, the work in question may be performed better or more economically by the City with its own employees or the supplies or materials may be purchased more economically on the open market, and after the adoption of a resolution to that effect by at least five affirmative votes of the City Council may proceed to have said work done or said supplies or materials purchased in the manner stated, without further observance of the provisions of this section.” The General Services Department has qualified and capable staff to install the new HVAC equipment. The procurement of the HVAC equipment through cooperative purchasing and installation by City employees will be more economical than competitively bidding the project. A competitively bid project for the purchasing and installation of similar HVAC equipment is estimated to cost $150,000 per unit. By purchasing the HVAC equipment and installing it with City employees, the City will save approximately $100,000 per unit for an estimated project total savings of $400,000. Additionally, a competitive bid would require additional staff time to administer and award the competitive bid and then to administer the resulting construction project. Thus, the City will realize additional savings through the reduction in necessary staff time.
The Police Chief concurs with this report.
STRATEGIC PLAN ALIGNMENT:
The replacement of four HVAC units at the Magnolia Police Station supports Strategic Priority No. 6 – Infrastructure, Mobility and Connectivity, and Goal No. 6.2 – Maintain, protect and improve assets and infrastructure within the City’s built environment to ensure and enhance reliability, resiliency, sustainability and facilitate connectivity.
This item also aligns with each of the Cross-Cutting Threads, as follows:
Community Trust – This project provides assurances to Riverside’s residents that significant investments are being made to improve public safety facilities, in accordance with the priorities outlined in the Measure Z spending plan.
Equity – This project helps to ensure functionality of the Magnolia Police Station, which serves all Riverside residents equitably.
Fiscal Responsibility – Cooperative contract pricing and in-house installation of the HVAC equipment ensures the best pricing for materials and labor.
Innovation – By leveraging cooperative equipment pricing and in-house installation, General Services found an innovative path to completing this critical project expeditiously.
Sustainability & Resiliency – The new HVAC units will be more energy efficient and increase the overall sustainability and resiliency of the Magnolia Police Station.
FISCAL IMPACT:
The total fiscal impact of the action is $ 213,092.40. The funds are available in the Measure Z, Annual Deferred Maintenance Project Account No. 9901909-462050.
Prepared by: Carl Carey, General Services Director
Certified as to
availability of funds: Edward Enriquez, Interim Assistant City Manager/Chief Financial Officer/Treasurer Approved by: Edward Enriquez, Interim Assistant City Manager/Chief Financial Off Officer/Treasurer Approved as to form: Phaedra A. Norton, City Attorney
Attachments:
Sourcewell Quote
Sourcewell Contract #070121-CAR
Resolution
Measure Z – Four HVAC Units for Mag PD ● Page 2