HomeMy WebLinkAboutAgenda Report - July 17, 2019 C-12c-12AGENDA ITEM
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CouNcIT, Co TMUNICATION
AGENDA TITLE:
MEETING DATE: July 17,2019
PREPARED BY: Electric Utility Director
Adopt Resolution Authorizing City Manager to Execute Professional Services
Agreement for Vending and Supply-Chain Automation Services with Elite Supply
Source, lnc. of Sacramento ($120,000) and Third Party Waiver with UniFi
Equipment Finance, lnc. of Ann Arbor, Ml.
RECOMMENDED ACTION
BACKGROU N D INFORMATION
Adopt a resolution authorizing the City Manager to execute a
professional services agreement for vending and supply-chain
automation services with Elite Supply Source, lnc. of Sacramento in
an amount not-to-exceed $120,000, and a third party waiver with
UniFi Equipment Finance, lnc. of Ann Arbor, Ml.
Lodi Electric Utility (LEU) currently purchases various consumables
and other miscellaneous safety supplies from multiple suppliers.
LEU seeks to streamline its operations by procuring turn-key vending and supply-chain automation
services. These services would include installation of customized vendor-owned machine(s), examples
of which are provided in Exhibit A, capable of supplying utility-selected materials and items on demand to
authorized users. Examples of those items include: specialized lineman gloves, anti-corrosion penetrant,
safety glasses, and other personal protective equipment and supplies. Machine transactions would be
payment-free to the users, being instead batched by the vendor for periodic invoicing to LEU. These
services would include:
. Remote monitoring of inventory and consumption. Procurement of replenishments. Packaging of items as needed to make them conducive for usage in machine(s). Restocking of machine(s) in a timely manner to avoid out-of-stock situations. Managing user access to machineso Generating consumption reportso Maintenance of machine(s) including monitoring and troubleshooting errors. General support and invoicing
ln addition to streamlining operations, staff foresees realizing a number of efficiencies such as better item
availability, reduced employee wait times such as when warehouse staff are unavailable due to the
arrival of large shipments, around-the-clock availability should an employee need safety items during an
after-hours outage or event, and improved access/inventory control. This vendor also offers the ability to
create and stock dispensable packages containing multiple components commonly used together,
providing the utility with possible future optimizations and benefits.
APPROVED
Manager
Adopt Resolut¡on Author¡zing City Manager to Execute Professional Services Agreement for Vending and Supply-Chain Automation Services
with Elite Supply Source, lnc. of Sacramento ($120,000) and Third Party Waiver with UniFi Equipment Finance, lnc. of Ann Arbor, Ml.
July '17,2019
Page.2
LEU requested and received proposals from multiple vêndors for these services. ln reviewing the
proposals, staff found that one vendor requ¡red a five-year contract; one was unable to supply the items
requested by LEU, and another who was non-responsive. Of the proposals received, as summarized
below, staff recommends Elite Supply Source, lnc. to provide the requested materials and services.
FISCAL IMPAGT:As this service simply provides a different method for procuring certain
types of items which LEU is already purchasing, LEU anticipates no net
increase in spending. Funding for these items currently comes from
various LEU operating accounts depending on the specific item and will
continue to be budgeted and allocated accordingly.
Not-to-exceed cost of $120,000 over three years. This figure represents
LEU's estimated three-year consumption, plus an allowance for possible
additions to the stocked items.
FUNDING AVAILABLE: Account Nos. 50064100.72306and 50064100.72359
Andrew Keys
Deputy City nternal Director
Melissa Price
lnterim Electric Utility Director
PREPARED BY: Tim Conn, Electrical Engineer
MP\TC\Nb
Vendor Total Per Month
(Fees + Estimated Qty.)
Comments
Anixter, lnc.$ 2,753 Requires S-year contract
Elite Supply Source, lnc.$ 2,731 Proposed purchase
Fastenal Company N/A Unable to supply requested items
W.W. Grainger, lnc N/A Non-responsive
Adopt Resolution Authorizing City Manager to Execute Professional Services Agreement for Vending and Supply-Chain Automation Services
with Elite Supply Source, Inc. of Sacramento ($120,000) and Third Party Waiver with UniFi Equipment Finance, Inc. of Ann Arbor, MI.
July 17, 2019 Page. 3
Exhibit A
Examples of Vending / Supply Chain Machines
RESOLUTTON NO. 2019-129
A RESOLUTION OF THE LODI CITY COUNCIL AUTHORIZING THE
CITY MANAGER TO EXECUTE A PROFESSIONAL SERVICES
AGREEMENT FOR VENDING AND SUPPLY-CHAIN AUTOMATION
SERVICES WITH ELITE SUPPLY SOURCE, INC., OF SACRAMENTO, AND
A THIRD PARTY WAIVER WITH UNIFI EQUIPMENT FINANCE, INC., OF
ANN ARBOR, MICHIGAN
WHEREAS, Lodi Electric Utility (LEU) currently purchases various consumables and
other miscellaneous safety supplies from multiple suppliers; and
WHEREAS, LEU seeks to streamline its operations by procuring turn-key vending and
supply-chain automation services by installing customized vendor-owned machine(s) capable of
supplying utility-selected materials and items on demand to authorized users; and
WHEREAS, in addition to streamlining operations, staff foresees realizing a number of
efficiencies, such as better item availability, reduced employee wait times, around-the-clock
availability, and improved access/inventory control; and
WHEREAS, since this service simply provides a different method for procuring certain
types of items which LEU is already purchasing, LEU anticipates no net increase in spending.
Funding for these items currently comes from various LEU operating accounts, depending on
the specific item, and will continue to be budgeted and allocated accordingly; and
WHEREAS, LEU requested and received proposals from multiple vendors for these
services, and of the proposals received, staff recommends Elite Supply Source, lnc., to provide
the requested materials and services.
NOW, THEREFORE, BE lT RESOLVED that the Lodi Gity Council does hereby
authorize the City Manager to execute a Professional Services Agreement with Elite Supply
Source, lnc., of Sacramento, California, for vending and supply-chain automation services, in an
amount not to exceed $120,000 over a three-year period; and
BE lT FURTHER RESOLVED that the Lodi City Council does hereby authorize the
City Manager to execute a third party waiver with UniFi Equipment Finance, lnc., of Ann Arbor,
Michigan.
?::1-1===i:I=1i--'=1lt======================================================
I hereby certify that Resolution No. 2019-129 was passed and adopted by the City
Council of the City of Lodi in a regular meeting held July 17,2019, by the following vote:
AYES: COUNCIL MEMBERS - Johnson, Kuehne, Mounce, Nakanishi, and
Mayor Chandler
NOES: COUNCIL MEMBERS - None
ABSENT: COUNCIL MEMBERS - None
ABSTAIN: COUNCIL MEMBERS - None
T\lrt*'R"
NIFER
2019-129
City Clerk
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