HomeMy WebLinkAboutApprove Sole Source Justification for the purchase of POM In T-
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City of Huntington Beach
File #: 18-510 MEETING DATE: 11/19/2018
REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Fred A. Wilson, City Manager
PREPARED BY: Chris Slama, Interim Director of Community Services
Subject:
Approve Sole Source Justification for the purchase of POM Incorporated parking meter
housings
Statement of Issue:
The Community Services Department is submitting for City Council approval a Sole-Source
Procurement request for the purchase of POM Incorporated parking meter housings. Purchasing
procedures require City Council approval for all sole source procurements over $50,000.
Financial Impact:
Funds in the amount of $66,250 for parking meter housings and poles were approved as a part of the
FY 2018/19 Equipment Replacement budget in account 32440217.83700.
Recommended Action:
Approve the Sole Source procurement of parking meter housings with POM Incorporated.
Alternative Action(s):
Do not approve the Sole-Source Procurement with POM Incorporated and direct staff accordingly.
Analysis:
The City currently has 964 single-space parking meters in use. These parking meters all fit into the
same housings, which are manufactured by POM Incorporated. Housings are used to attach the
meter head securely to the pole and hold coins until they are collected. Over time, the housings wear
out due to use. This request is to purchase 220 units at a cost of $254 each for a total purchase of
$61 ,789, including shipping and tax. Changing the manufacturer of the housings would require the
selection of another parking meter manufacturer at significant cost to the City as well since the
meters are designed to fit within the POM Incorporated housing units. Parts for both types of parking
meters and housings would have to be kept in stock and the City's single-space parking meters
would no longer be uniform in terms of maintenance or appearance. Additionally, the housing units
provided by POM Incorporated are comparable in cost to similar vendors. Further, based on
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File #: 18-510 MEETING DATE: 11/19/2018
experience and research with other cities, staff has found that the POM Incorporated units are the
only products that do not rust in the marine environment.
Environmental Status:
Not applicable.
Strategic Plan Goal:
Enhance and maintain infrastructure
Attachment(s):
1. POM Incorporated Sole-Source Justification
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RECEIVED
CITY OF HUNTINGTON BEACH
OCT 23 j
Sole-Source Justification Finance Deparvrwt
(For use on all goods and services acquisitions.)
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: October 10, 2018
Requestor Name: Dottie Hughes Division Manager: David Dominguez
(Type names. Do not sign.)
Department: Community Services Department Head: Marie Knight
(Type names. Do not sign. Must be same as signature below.
Department Contact Information
Contact Name: Dottie Hughes Street Address: 103 Pacific Coast Hwy, Huntington
Telephone: 5647 Beach, CA 92648
Fax: Shipping Address: 8669 Edison Way, Huntington Beach,
Cellular hone: CA 92646
Required Contact Information
Contractor/Supplier Name: POM Incorporated
Contractor/Supplier Address: 2000 Elmira Ave.
Contractor/Supplier City/State/Zip: Russellville AZ 72802
Original Contract Amount:* Amendment Amount:* (if applicable) New Contract Amount:*
$ $ $61,789.00
(*Includes original contract and previously (*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:
Request to purchase 200 parking meter housings.
Contract Type and Term
Contract Type: Contract Term: What account number will be used to purchase?
Select One: ® Goods Begin: 9/25/2018 Business Unit: 32440207
❑ Service
❑ Goods& Services End: 9/25/2028 Object Code: 83700
Require Approvals
pepartment Head Fiscal Services Manager Chief Fin a ial Officer A istant City Manager
OAp rov d ❑ Denied Approved ❑Denied �A proved ❑ Denied pproved ❑ Denied
1-tiv l crLl�
Signature Signature Signature Signature
101 Z3 / f f to/24I�Y
Date Date Date Elate
(Transactions exceeding$50,000
must be approved by City Council)
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 )
POM is the manufacturer of the meter housings that are currently used for 964 meters within the city.
They have a proven track record in beach areas where other types of housings have not stood up to the
environment. IPS designs the meters to go into a specific housing and our metes are all made to fit the
POM housings.
2. Provide the background of events leading to this acquisition.
The city currently has 964 single space meters in use. These meters all fit into the same housing which is
manufactured by POW The housings are that part that hold the meter securely to the pole and hold coins
until they are collected. Over time they do wear out and need to be replaced. The purchase of 200
housings would go a long way to ensure that we have working meter housings at all times.
3. Describe the uniqueness of the acquisition (why was the good/service/supplier chosen?).
POM has the housings that work with our IPS meters. We already have 964 meters using the POM
housings but many of the housings are 15 year old and are in need of replacement. It would not be in the
cities best interest to purchase housing that are not uniform in parts or appearance. The IPS meters that
we use only fit in the POM housings.
4. What are the consequences of not purchasing the goods/services or contracting with the proposed
supplier?
Not purchasing meter housings from POM would mean that we would need to find another product and
would need to replace the currently used meter heads at$497 each. We would need to keep parts for both
housings in stock and it would not be attractive to have housings that are different in appearance. Other
housings may not last as long in the harsh beach conditions.
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.)
In speaking to other beach cities POM has been the only product that did not rust in the marine
environment. Other products are similar in price but would not fit the meter heads that we currently use.
We have 964 meters currently in use.
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 on the POM meter housing is similar in price to other housing prices but other housings would
not work with the current meters.
2. Describe any cost savings realized or costs avoided by acquiring the goods/services from this supplier.
By not switching housing manufacturers we do not need to replace all of the housings and meter heads.
It is a cost savings to have interchangeable parts because we do not need to keep several sets of parts in
stock. The POM meter housings do not rust in the marine environment like other products do so they last
longer.
Remit completed form to: City of Huntington Beach—Purchasing Division
2000 Main Street, Huntington Beach, CA 92648-2702
rom200 South Elmira Avenue
Russellville,AR 72802
(PO Box 430,zip 72811-0430)
Toll Free in USA 800-331-7275
Ph 479-968-2880, Fx 479-968-2840
PARKING METERS E www.pom.com-pom@pom.com
October 19, 2018
Dottie Hughes
Beach Parking and Camping Supervisor
City of Huntington Beach
8669 Edison Way
Huntington Beach,CA 92648
This letter is to certify that POM is the sole manufacturer of the all-zinc Tamperproof parking meter
housings currently in use in Huntington Beach and being offered again by POM to the City. The POM
zinc Tamperproof is the only meter housing design into which the IPS model M5 232 mechanisms will fit,
which are the meter mechanisms currently utilized by Huntington Beach. Additionally,the internal
locking mechanism parts are only manufactured by POM.
The POM Tamperproof housing design is the most durable and offers the highest coin box capacity of
any other zinc meter housing design ever produced. This housing also affords the City of Hunting Beach
the option to upgrade to the POM Parktel solar smart meter without any housing or mechanism
modifications.
POM is a 100%woman owned business and is ISO 9001:2008 quality certified. We look forward to many
years of continued vendor relationship with the City of Huntington Beach.
Sincerely,
Bobra Schultes
Technical Sales Manager
4 * Recipient of the WL�
President's E-Star Award
for Continued Excellence
in Exporting