AUTHORIZATION TO ENTER INTO AMENDMENT NO. 2 TO THE LINKING AGREEMENT WITH EATON SALES AND SERVICE, LLC, FOR INSTALLATION, REPAIR AND MAINTENANCE OF PETROLEUM STORAGE TANK SYSTEMS
Staff Contact: Jack Friedline, Director, Public Works
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Purpose and Recommended Action
Recommendation
This is a request for City Council to authorize the City Manager to enter into Amendment No. 2 to the Linking Agreement with Eaton Sales and Service, LLC, Contract No. C-10992, for an increase of $412,192.63, for a total not to exceed amount of $457,192.63, for the entire term of the Agreement, for installation, repair and maintenance of petroleum storage tank systems, and to authorize the City Manager to renew the Agreement, at the City Manager’s discretion, for an additional three, one-year renewals. The current term of the Agreement is effective through September 16, 2017.
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Background
The city owns and maintains four fuel sites, located at the Field Operations Complex, Fire Stations #153 and 155, and at the Glendale Municipal Landfill. The existing fuel site at the landfill is within the area projected to have waste placed in two years, as well as being approximately 20 years old, and is due for replacement.
Eaton Sales and Service, LLC was awarded a bid by the State of Arizona, Contract No. ADSPO16-109211, for Installation, Repair and Maintenance of Petroleum Storage Tank Systems, on September 22, 2015 and included a Cooperative Purchasing Agreement. The contract is effective through September 16, 2017, and includes an option to renew the contract for an additional three, one-year renewals, allowing the contract to be extended through September 16, 2020.
On July 15, 2016, the city entered into a Linking Agreement for installation, repair and maintenance of petroleum storage tank systems with Eaton Sales and Service, LLC, Contract No. C-10992, in amount not to exceed $45,000, utilizing the State of Arizona Contract No. ADSPO16-109211, for the Fleet Management Division.
On September 22, 2016, the city entered into Amendment No. 1 to the Linking Agreement with Eaton Sales and Service, LLC, extending the term of the Agreement through September 16, 2017.
Cooperative purchasing allows counties, municipalities, schools, colleges and universities in Arizona to use a contract that was competitively procured by another governmental entity or purchasing cooperative. Such purchasing helps reduce the cost of procurement, allows access to a multitude of competitively bid contracts, and provides the opportunity to take advantage of volume pricing. The Glendale City Code authorizes cooperative purchases when the solicitation process utilized complies with the intent of Glendale’s procurement processes. This cooperative purchase is compliant with Chapter 2, Article V, Division 2, Section 2-149 of the Glendale City Code, per review by Materials Management.
Analysis
The initial Agreement and Amendment No. 1 were for maintenance of petroleum storage tank systems for the Fleet Management Division located at the Field Operations Complex and fuel sites at Fire Stations #153 and #155.
Amendment No. 2 is to increase the scope and total compensation to include the cost for design and construction services of an above ground diesel fuel tank, fuel management system, canopy, and lighting at the Glendale Municipal Landfill, maintenance of the new tank, and an increase in maintenance for existing fuel sites city wide.
Community Benefit/Public Involvement
The landfill is a responsible, progressive and environmentally sound long-term solution to solid waste management essential to the future health, welfare and prosperity of Glendale residents. The installation of the new diesel fueling system will provide for the future viability of the landfill. Increasing the size of the fueling site provides for city-wide fleet reliability, and will allow for delivery of full loads of diesel fuel resulting in direct cost savings to the landfill.
Cooperative purchasing typically produces the lowest possible volume prices and allows for the most effective use of available funding. The bids are publicly advertised and all Arizona Firms have an opportunity to participate.
Budget and Financial Impacts
Funding is available in Fiscal Year 2016-17 Landfill Operating and Capital Improvement budget and the Fleet Management’s, Fuel Services Operating Fund budget. The increase in expenditures with Eaton Sales and Service, LLC will not exceed $412,192.63 for a total maximum of $457,192.63 for the entire term of the Agreement, contingent upon Council Budget approval.
|
Cost |
Fund-Department-Account |
|
$217,192.63 |
2440-78523-550800, Diesel Tank Purchase and Install |
|
$40,000 |
2440-17710-518200, Maintenance-Services-Repairs |
|
$155,000 |
2590-18301-518200, Fuel Services |
Capital Expense? Yes, Landfill Diesel Tank Design and Construction
Budgeted? Yes
Requesting Budget or Appropriation Transfer? No