HomeMy WebLinkAboutApprove a sole source purchase of two replacement lifeguard Dept ID FD16 007 Page 1 of 2
Meeting Date 6/20/2016
CITY OF HUNTINGTON BEACH
REQUEST FOR CITY COUNCIL ACTION
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MEETING DATE: 6/20/2016
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Fred A Wilson, City Manager
PREPARED BY: David Segura, Fire Chief
SUBJECT: Approve a sole source purchase of two replacement lifeguard towers from
Industrial Design Research
Statement of Issue
Approval of a sole source purchase of two replacement lifeguard towers is requested due to
Industrial Design Research, the manufacturer, being the only provider of the required type of
lifeguard tower utilized by the Marine Safety division As required by the City's procurement
process, the vendor was certified as a sole source provider for previous lifeguard tower purchases
Financial Impact
Funds are budgeted in the FY 2015/16 Non-Departmental Equipment Replacement business unit in
account 10040209 83700 The total cost for replacement of two lifeguard towers will be $78,141 or
$39,070 50 each This price includes the purchase of two towers ($66,409) and two tower bases
($11,732)
Recommended Action
Approve sole source purchase from Industrial Design Research of two lifeguard towers
Alternative Action(s)
Do not approve the sole source purchase and instruct staff on how to proceed
Analysis
On May 16, 2016, the City Council approved a license agreement between the City and Hurley
International, LLC for sponsorship of two lifeguard towers This agreement provided $90,000 to the
City in exchange for the right to advertise on the back of two towers
At this time, approval of a sole source purchase of the two towers is requested The proposed
vendor, Industrial Design Research, was chosen because it is the only manufacturer in the United
States of the type of fiberglass lifeguard towers, used in Huntington Beach This model has been
used with positive results in the past and the proposed towers are consistent with existing lifeguard
towers on City beaches
Industrial Design Research is an international manufacturer of lifeguard towers In addition to the
City of Huntington Beach, they are also used by the State of California for the purchase of towers in
the State Park system On March 7, 2016, the City Council certified them as a sole source provider
for the City of Huntington Beach At that time two towers were purchased and certification is again
requested for the purchase of the two additional towers provided through the Hurley agreement
Item 6. - I HB -34-
Dept ID FD16 007 Page 2 of 2
Meeting Date 6/20/2016
The price of the towers is consistent with what is charged to other agencies for the same product
and is similar to pricing quoted to the City in FY 2014/15 The purchase includes
2 Lifeguard Towers $66,409 ($33,204 30 each)
2 Tower Bases $11,732 ($5,866)
Total $78,141
The bases are made of stainless steel square stock, which provides a more durable and sturdy
base for the towers This extra strength better supports the structure of the tower during frequent
relocations due to beach erosion and required maintenance This component of the tower structure
will be provided by a separate vendor, Prime Fabrication, Inc , in order to obtain a better, more
durable product The life expectancy of the two new towers is 30 years and the purchase is in line
with Marine Safety's long-term planning for replacing two towers each year
The approved sole source justification is shown as Attachment 1
Environmental Status
None
Strategic Plan Goal
Enhance and maintain public safety
Attachment(s)
Sole Source Justification
xB -35- Item 6. - 2
1
RECEIVED
CITY OF HUNTINGTON BEACH
MAY 2 5 2016
Sole-Source Justification
(For use on all goods and services acquisitions) Finance Department
This justification document consists of two(2)pages All information must be provided and all questions must be answered The"Required
Approvals"section must include a date for each signature,as appropriate for the transaction
Requesting Department Information
Date: May 17, 2016
Requestor Name: Mike Baumgartner ) Division Manager: Mike Baumgartner
(Type names Do not sign
Department: Fire Department Head: David A. Segura
(Type names Do not sin Must be same as signature below
Department Contact Information
Contact Name- Mike Baumgartner Street Address: 103 Pacific Coast Highway
Telephone. 714 536-5489
Fax: 714 374-1500 Shipping Address: 103 Pacific Coast Highway
Cellular hone: 714 328-0432 Huntington Beach, CA 92648
Required Contact Information
Contractor/Supplier Name: Industrial Design Research
Contractor/Supplier Address: 3121 West Cortez Avenue, Santa Ana, CA 92704
Contractor/Supplier City/State/Zip:
Original Contract Amount.* Amendment Amount,* (if applicable) New Contract Amount,*
$78 71 78,
7 Z 7 g y ( � 78, /5//, 7Z
(*Includes original contract and previously i `� Z. (*Includes original contract and all amendments,
approved amendments *Current amendment only) including current amendment
Provide a brief description of the acquisition, including all goods and/or services the contractor willprovide:
Supply of two (2) Surveyor SR Fiberglass lifeguard towers, optional color California Blue, three course stainless steel
railings, 30 degree custom side mounted ladder(open front deck), full width interiour counter-shelf with two locking
cabinets (standard color Newport White), with stainless steel support structure with 12"wide skids, 6"deck height,
custom reinforced cross member
Contract Type and Term
Contract Type: Contract Term: What account number will be used to purchase?
Select One ® Goods Begin 10/1/15 Business Unit 10040101
❑ Service
❑ Goods&Services End 9/30/16 Object Code 83700
Require Approvals
Departme Head FFAp
cal S Ices Manager Djctor of Finance an Manager
Approved ❑Denied p ve Denied Approved ❑ Denied A proved ❑Denied
t�
igna u e Sig ture Signature L Signature
� g (9-746
Date Date Date Date
(Transactions exceeding$50,000
must be approved by City Council
1
CITY OF HUNTINGTON BEACH
Sole Source Justification
(For use on all goods and services acquisitions)
Complete responses must be provided for all of the following items.
A. THE GOOD/SERVICE REQUESTED IS RESTRICTED TO ONE SUPPLIER FOR THE REASONS STATED BELOW-
1. Why is the acquisition restricted to this goods/services/supplier?
(Explain why the acquisition cannot be competitively bid)
Industrial Design Research is an international manufacturer of lifeguard towers. They are used by the
State of California for purchase of towers for beaches in the State Park system and have been used
previously by the City of Huntington Beach. For prior City purchases,they were certified as a sole source
provider and this company is the only provider of this type of lifeguard tower.
2. Provide the background of events leading to this acquisition.
The Marine Safety Division has a long term equipment replacement plan that identifies the life expectancy
of major capital items, including lifeguard towers. These towers are scheduled for replacement at a rate
of two per year for the next several years. Due to the economic downturn and the City's financial
situation, no replacement towers were purchased FY 10/11, FY 11/12, and FY 12/13. This ongoing
replacement plan was first adopted in FY 07/08 The last two replacement towers were purchased in FY
14/15. The replacement of the old, deteriorating towers was postponed until funding for two replacement
towers was approved in FY 2013/14 and again in FY 2014/15.
3 Describe the uniqueness of the acquisition (why was the good/service/supplier chosen?).
This supplier was chosen because it is the only manufacturer of fiberglass lifeguard towers of this type in
the United States. This model of tower has been used with good results in the past These towers match
and are consistant with the existing lifeguard towers on the City beach.
4. What are the consequences of not purchasing the goods/services or contracting with the proposed
supplier?
Being the only provider of the type of lifeguard tower used on Huntington City Beach,the City would not
be able to replace existing,worn out,fiberglass towers with a comparable structure if this vendor is not
used. A few of the existing towers have degraded to the point that the tower doors won't shut and
temporary modifications were necessary to secure the towers. The worn and delapidated lifeguard
towers require potential repairs, may comprise security, are an eyesore and reflect poorly upon the City of
Huntington Beach.
5 What market research was conducted to substantiate no competition, including evaluation of other items
considered?
(Provide a narrative of your efforts to identify other similar or appropriate goods/services, including a summary of how the department
concluded that such alternatives are either inappropriate or unavailable The names and addresses of suppliers contacted and the reasons
for not considering them must be included OR an explanation of why the survey or effort to identify other goods/services was not
performed)
It was determined that this is still the only firm producing this type of fiberglass lifeguard tower,so a
purchase from Industrial Design Research is proposed.
2
B. PRICE ANALYSIS
1. How was the price offered determined to be fair and reasonable?
(Explain what the basis was for comparison and include cost analyses as applicable)
The price is consistant with what is charged other agencies for the same product and is similar to the
pricing quoted to the City in FY 2014/15.
2. Describe any cost savings realized or costs avoided by acquiring the goods/services from this supplier.
These towers have a life expectancy of thirty years and are an essential part of the City's public safety
service delivery system. Purchase of this quality and long lasting product provides a cost savings in the
long term.
Remit completed form to City of Huntington Beach—Purchasing Division
2000 Main Street, Huntington Beach, CA 92648-2702
3
INDUSTRIAL DESIGN RESEARCH , INC
3121 West Central Avenue,Santa Ana, CA 92704/Phone: (714)420-0695/email: indesre@sbcglobal.net
Date: May 23,2016 QUOTATION
•: REQUESTED
Surveyor Sr.Towers Michael Baumgartner
Marine Safety Division Chief
Huntington Beach Fire Department
Mike.BaumgartnerCalsurfaty-hb.ora
QTY DESCRIPTION TAXED UNIT PRICE LINE TOTAL
2 Surveyor Senior with 30°custom side mounted ladder(open front deck) x $31,677.00 $ 63,354.00
2 (3 course stainless steel railings, Full width interior counter/2 locking cabinets) x $ - $ -
2 Credit for galvanized structure x $ (2,535,00) $ (5,070.00)
2 Custom color:California Blue x $ 735.00 $ 1,470.00
1 Truck delivery wide load): $ 1,450.00 $ 1,450.00
1 Palletize/load $ 425.00 $ 425.00
SUBTOTAL $ 61,629.00
Other Comments or Special Instructions TAXABLE 59,754.00
Buyer responsible for off-loading towers from truck TAX RATE 8.000%
Quotation good for 30 days TAX $ 4,780.32
TOTAL $ 66,409.32
CONDITIONS OF SALE(APPROVAL SIGNATURE REQUIRED)
Buyer shall properly operate and maintain each tower per IDR's guidelines,as updated from time to time.
Buyer shall be solely responsible for denying access to each tower to the public. Only persons authorized
by Buyer shall be allowed access to each tower. The towers are not designed for public use.
Buyer shall indemnify and hold IDR harmless for any and all damages,claims,causes of action and injuries by any person
who is not an authorized agent of Buyer as a result of any contact with a tower,excluding any patent defects in a tower.
Buyer is solely responsible for the deployment of and securing the towers against environmental and weather conditions.
Quotation,terms and conditions of sale approved by:
Signed Title Date
Prime Fabrication, Inc Estimate
33081 Calle Perfecto# B
San Juan Capistrano, CA 92675 Date work Order#
5/10/2016 2207
Name/Address
CITY OF HUNTINGTON BEACH
103 PACIFIC COAST HWY
HUNTINGTON BEACH,CA 92648
Project
Description Hrs/Qty/Lbs Rate Qty Total
FABRICATE TWO TOWERS FROM 3"SQUARE 2 2,10000 4,200 OOT
STAINLESS TUBING
12"X 8"X 20'MARINE GRADE ACZA2 5 WOOD 4 395 00 1,580 OOT
SKIDS AND HARDWARE
DELIVER BASES AND SKIDS 1 60000 60000
INSTALL SKIDS ON BASES 4 11000 44000
INSTALL NEW TOWER ON BASE 2 1,80000 3,60000
FORKLIFTS(2) 1 85000 85000
PRIME FABRICATION CAN PROVIDE NAMED
INSURANCE FOR 1 MILLION COVERAGE DURING
INSTALLATION
THIS QUOTE DOES NOT INCLUDE REMOVAL OR
DISPOSAL OF OLD BASES IF APPLICABLE
LEAD TIME 3-4 WEEKS
Subtotal $11,270 00
Sales Tax (8.0%) $462 40
Invoices paid by Credit Card will incur a 2%fee
Total $11,732 40
Phone# Fax# E-mail Web Site
(949)496-1348 (949)496-1341 trevor@prune fabrication corn www prune fabri cation corn