May 30, 2006
SUBJECT: Authorization to Modify an Existing Contract for Irrigation System Parts and Supplies (F0505-80)
REPORT IN BRIEF
Authorization is requested to modify an existing blanket purchase order with John Deere Landscapes of San Jose for the purchase of irrigation system parts and supplies for the Departments of Public Works and Parks and Recreation. The requested modification includes extending the contract term for one year and increasing authorized expenditures. The existing one-year contract was issued under the City Manager’s contract award authority of $50,000 and will expire on June 30, 2006.
BACKGROUND
The City installed its Rainmaster “Evolution” irrigation system in the early 1990s as the result of a competitive bidding process. This system is radio controlled, using satellite technology, with its central computer system located at the City’s Corporation Yard. During the first year of the system’s operation, water usage was reduced by 40 percent; and this level of usage has been maintained since the system went into use.
To keep this system in optimal condition, a wide variety of irrigation parts and components are purchased on an “as needed” basis throughout the year. The systems have a replacement cycle of approximately ten years; and system components, including controllers, must be replaced as they reach the end of their useful life. “Evolution” irrigation system parts and components are used throughout the City’s open space system, including parks, schools and special facilities.
DISCUSSION
With more than a month remaining of the one-year contract term, it is obvious that expenditures under the John Deere Landscapes blanket purchase order will exceed the City Manager’s contract award authority of $50,000, thereby requiring Council action.
Section 2.08.070 (b) of the Sunnyvale Municipal Code exempts from competitive bidding contracts for which the City’s requirements can be met solely by a single proprietary article or process available from a single source. In this case, only Rainmaster “Evolution” equipment parts are compatible with the City’s installed system. John Deere Landscapes is the sole California distributor for the “Evolution” equipment and replacement parts.
FISCAL IMPACT
Staff requests that Council amend the existing purchase order to extend its term through June 30, 2007, and increase authorized expenditures from $50,000 to $200,000 ($44,000 already expended under the existing purchase order, an additional $56,000 for components known to need replacement before the end of this fiscal year and an additional $100,000 to maintain and repair the systems during FY 2006/2007). Funds have been budgeted in various City accounts.
RECOMMENDATION
It is recommended that Council modify an existing blanket purchase order with John Deere Landscapes for irrigation parts and supplies, in substantially the same form as the attached Change Order which extends the contract term through June 30, 2007, and increases authorized expenditures to $200,000.
Prepared by:
Elaine Wesely
Purchasing Officer
Reviewed by:
Mary J. Bradley
Director, Finance
Reviewed by:
David A. Lewis
Director, Parks and Recreation
Reviewed by:
Marvin Rose
Director, Public Works
Approved by:
Amy Chan
City Manager
Attachments
1. Change Order No. 1 (.pdf)
2. Blanket Purchase Order No. 27806-B (.pdf)