For City Council Meeting [August 13, 2019]
TO: Honorable Mayor and City Council
APPROVAL: Rod Foster, City Administrator
FROM: Sean Grayson, Acting Public Works Director
Title
Request City Council to Authorize the Issuance of a Purchase Order with Svevia USA Inc., in the amount of $60,000 for Fiscal Year 2019/2020 for Street Marking Paint.
(ACTION)
Body
BACKGROUND:
The Public Works Traffic Safety Division performs street striping, legend stenciling and thermo-plastic application for street striping. In recent years, the City has purchased these products from American Traffic Products in Rialto, CA. The company was purchased by Ennis Paint, thus closing the business.
ANALYSIS/DISCUSSION:
On April 25, 2019, the City released Request for Bid (RFB) #19-125 for bid. The bid was advertised on Adtech (Daily Journal Corp), the City’s Website and Planet Bids.com. The total number of vendors notified was 455. The RFB period closed on May 20, 2019, with three (3) proposals submitted by:
• Svevia USA of Fontana, CA
• Ennis Paint of Greensboro, NC
• Ozark Materials of Greenville, AL
City staff reviewed each proposal according to the criteria listed in the RFB. Staff concluded that the lowest bidder, Svevia USA was the lowest responsive bidder to provide the City with Street Marking Paint. A copy of the Bid Abstract is included as Attachment 1.
Staff recommends the City Council award Purchase Order to Svevia USA for an initial term of one (1) year beginning July 1, 2019 through June 30, 2020. The City may elect to continue the Purchase Order for two (2) additional one (1) year terms, which pricing has been provided for the entire three (3) year term. A copy of the disclosure form is included as Attachment 2.
ENVIRONMENTAL IMPACT:
Approval of the Contract Services Agreement is not a “Project” as defined by the California Environmental Quality Act (CEQA). Pursuant to Section 15378(a), a “Project” means the whole of an action, which has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment. According to Section 15378(b), a Project does not include: (5) Organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment.
GENERAL PLAN CONSISTENCY:
This action is consistent with Guiding Principle 3A in the General Plan:
Our City government will lead by example, and will operate in an open, transparent, and responsive manner that meets the needs of the citizens and is a good place to do business.
LEGAL REVIEW:
The City Attorney has reviewed and approved the staff report.
FINANCIAL IMPACT:
Operating Budget Impact:
Funds are budgeted and available in the amount of $60,000 for Street Marking Paint in the General Fund Account 010-500-7308-2021.
Capital Improvement Budget Impact:
This is an annual maintenance purchase of products and has no impact of the Capital Improvement Budget.
Licensing:
Prior to execution of the Professional Service Agreement/Purchase Order/Construction Contract, the vendor shall submit a business license application and pay a Business License tax at the Professional Service rate of $129.
RECOMMENDATIONS:
Staff recommends that the City Council Authorize the Issuance of a Purchase Order with Svevia USA Inc., in the amount of $60,000 for Fiscal Year 2019/2020 for Street Marking Paint.