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07-07-2020 - AGENDA ITEM 18 CONSIDERATION OF ANNUAL PURCHASE ORDER TO WAXIE SANITARY SUPPLY FOR FISCAL YEAR 2020-21AGENDA ITEM NO. 18 AGENDA STAFF REPORT City of West Covina I Office of the City Manager DATE: July 7, 2020 TO: Mayor and City Council FROM: David Carmany City Manager SUBJECT: CONSIDERATION OF ANNUAL PURCHASE ORDER TO WAXIE SANITARY SUPPLY FOR FISCAL YEAR 2020-21 RECOMMENDATION: It is recommended that the City Council approve an annual purchase order for Fiscal Year (FY) 2020-21 to WAXIE Sanitary Supply in the total amount of $65,000. DISCUSSION: WAXIE Sanitary Supply has been serving government agencies at a low cost since 1945. They are an industry leader in the distribution of quality sanitary and janitorial supplies and equipment to the commercial, industrial, contractor and institutional markets. Since 2004, WAXIE has been furnishing sanitary and janitorial supplies to the City of West Covina. WAXIE has been invoicing the City under the National Cooperative Purchasing Alliance (NCPA). For FY 2018-19, the City Council approved an annual purchase order with WAXIE in the amount of $60,000. For FY 2019-20, the City Council approved an annual purchase order with WAXIE in the amount of $61,000. During FY 2019-20, the City spent $59,088 on WAXIE sanitary and janitorial supplies, with an average monthly cost of $5,000. Staff is now requesting that the City Council approve an annual purchase order in the total amount of $65,000 for the purchase of WAXIE sanitary and janitorial supplies for FY 2020-21. The total approved budget for the purchase of City buildings supplies and materials including sanitary and janitorial supplies in FY 2020-21 is $85,000 in account 110.61.4144.6270. NCPA is a leading national government purchasing cooperative working to reduce the cost of goods and services by leveraging the purchasing power of public agencies in all 50 states. NCPA utilizes state-of-the-art procurement resources and solutions that result in cooperative purchasing contracts that ensure all public agencies are receiving products and services of the highest quality at the lowest prices. Under NCPA, cities are able to purchase products and/or services at significantly reduced rates. The Purchasing Division has verified that NCPA meets all City's requirements set forth in Section 2-333(i)(2) of the West Covina Municipal Code and therefore formal contract procedures may be waived. The current NCPA contract expires in April 2022. OPTIONS: The City Council has the following options: https://destinyhosted.com/print_ag_memo.Gfm?seq=851 &rev_num=0&mode=Extemal&reloaded=true&id=93782 1 /2 11/24/2020 Print Staff Report 1. Approve staff's recommendation; or 2. Direct staff to solicit bids; or 3. Provide alternative direction. Prepared by: Mike Cresap Public Services Superintendent Fiscal Impact FISCAL IMPACT: The total approved budget for the purchase of City buildings supplies and materials, including sanitary and janitorial supplies, in FY 2020-21 is $85,000 in account 110.61.4144.6270. No appropriation is required. Attachments Attachment 1 - Waxie NCPA Contract CITY Enhance City Facilities and Infrastructure COUNCIL Protect Public Safety GOALS & OBJECTIVES: https://destinyhosled.com/print_ag_memo.Gfm?seq=851 &rev_num=0&mode=Extemal&reloaded=true&id=93782 2/2 ATTACHMENT NO. 1 NCPA National Cooperative Purchasing Alliance W=&-M ® SANITARY S U P P L Y Waxie Website: http://www.waxie.com Overview WAXIE Sanitary Supply is the industry leader in the distribution of quality sanitary and janitorial supplies and equipment to the commercial, industrial, contractor and institutional markets. WAXIE reduces your total sanitary and janitorial maintenance costs by providing the highest quality products, supplies, tools and equipment all under one roof. From the basics you use every day - toilet tissue, cleaners, trash can liners, mops and safety supplies - to more specialized items like marble care products, floor care machinery, dilution control systems, washroom partitions, ware wash and laundry, and more, WAXIE is the single source for all your maintenance needs. Contract Info Awarded Vendor: Waxie Contract Awarded: Comprehensive Operational and Janitorial Supplies Solutions Contract Number: 02-27 Lead Agency: Region 14 ESC Contract Term: 3 year term, April 11, 2016 to April 30, 2019 *Option to renew for five (5) additional one (1) year periods. E8T. 196 Region XIV Education Service Center 185o Highway 351 Abilene, TX 796oi-475o 325-675-8600 FAX 325-675-8659 Monday, April 11", 2016 Waxic's Enterprises, Inc. dba Waxie Sanitary Supply ATTN: Mike. Museara 9353 Waxie Way San Diego, CA 92123 Dear Mike: Region XIV Education Service Center is happy to announce. that Waxie's Enterprises, Inc. dba Waxie Sanitary Supply has been awarded an annual contract for Comprehensive Operational and Janitorial Supplies Solutions based on the proposal submitted to Region XIV ESC. The contract is effective immediately and will expire on April 30", 2019. The contract can be renewed annually for an additional five years, if mutually agreed on by Region XIV ESC and Waxie's Enterprises, Inc. dba Waxie Sanitary Supply We look forward to a long and successful partnership underneath this contract. If you have any questions or concerns, feel free to contact me at 325-675-8600. Sincerely, Ronnie Kincaid Region XIV, Executive Director Tab 2 - NCPA Administration Agreement This Administration Agreement is made as of April 11, 2016 by and between National Cooperative Purchasing Alliance ("NCPA") and Waxie's Enterprises ("Vendor"). Recitals WHEREAS, Region 14 ESC has entered into a certain Master Agreement dated April 11, 2016 referenced as Contract Number 02-27 , by and between Region 14 ESC and Vendor, as may be amended from time to time in accordance with the terms thereof (the "Master Agreement"), for the purchase of Comprehensive Operational and Janitorial Supplies Solutions; WHEREAS, said Master Agreement provides that any state, city, special district, local government, school district, private K-12 school, technical or vocational school, higher education institution, other government agency or nonprofit organization (hereinafter referred to as "public agency" or collectively, "public agencies") may purchase products and services at the prices indicated in the Master Agreement; WHEREAS, NCPA has the administrative and legal capacity to administer purchases under the Master Agreement to public agencies; WHEREAS, NCPA serves as the administrative agent for Region 14 ESC in connection with other master agreements offered by NCPA WHEREAS, Region 14 ESC desires NCPA to proceed with administration of the Master Agreement; WHEREAS, NCPA and Vendor desire to enter into this Agreement to make available the Master Agreement to public agencies on a national basis; NOW, THEREFORE, in consideration of the payments to be made hereunder and the mutual covenants contained in this Agreement, NCPA and Vendor hereby agree as follows: ♦ General Terms and Conditions • The Master Agreement, attached hereto as Tab 1 and incorporated herein by reference as though fully set forth herein, and the terms and conditions contained therein shall apply to this Agreement except as expressly changed or modified by this Agreement. • NCPA shall be afforded all of the rights, privileges and indemnifications afforded to Region 14 ESC under the Master Agreement, and such rights, privileges and indemnifications shall accrue and apply with equal effect to NCPA under this Agreement including, but not limited to, the Vendor's obligation to provide appropriate insurance and certain indemnifications to Region 14 ESC. • Vendor shall perform all duties, responsibilities and obligations required under the Master Agreement in the time and manner specified by the Master Agreement. • NCPA shall perform all of its duties, responsibilities, and obligations as administrator of purchases under the Master Agreement as set forth herein, and Vendor acknowledges that NCPA shall act in the capacity of administrator of purchases under the Master Agreement. • With respect to any purchases made by Region 14 ESC or any Public Agency pursuant to the Master Agreement, NCPA (a) shall not be construed as a dealer, re -marketer, representative, partner, or agent of any type of Vendor, Region 14 ESC, or such Public Agency, (b) shall not be obligated, liable or responsible (i) for any orders made by Region 14 ESC, any Public Agency or any employee of Region 14 ESC or Public Agency under the Master Agreement, or (ii) for any payments required to be made with respect to such order, and (c) shall not be obligated, liable or responsible for any failure by the Public Agency to (i) comply with procedures or requirements of applicable law, or (ii) obtain the due authorization and approval necessary to purchase under the Master Agreement. NCPA makes no representations or guaranties with respect to any minimum purchases required to be made by Region 14 ESC, any Public Agency, or any employee of Region 14 ESC or Public Agency under this Agreement or the Master Agreement. The Public Agency participating in the NCPA contract and Vendor may enter into a separate supplemental agreement to further define the level of service requirements over and above the minimum defined in this contract i.e. invoice requirements, ordering requirements, specialized delivery, etc. Any supplemental agreement developed as a result of this contract is exclusively between the Public Agency and Vendor. NCPA, its agents, members and employees shall not be made party to any claim for breach of such agreement. ♦ TermofAgreement This Agreement shall be in effect so long as the Master Agreement remains in effect, provided, however, that the obligation to pay all amounts owed by Vendor to NCPA through the termination of this Agreement and all indemnifications afforded by Vendor to NCPA shall survive the term of this Agreement. ♦ Fees and Reporting The awarded vendor shall electronically provide NCPA with a detailed monthly or quarterly report showing the dollar volume of all sales under the contract for the previous month or quarter. Reports shall be sent via e-mail to NCPA offices at reporting@ncpa.us. Reports are due on the fifteenth (15th) day after the close of the previous month or quarter. It is the responsibility of the awarded vendor to collect and compile all sales under the contract from participating members and submit one (1) report. The report shall include at least the following information as listed in the example below: Entity Name Zip Code State PO or job # Sale Amount Total Each quarter NCPA will invoice the vendor based on the total of sale amount(s) reported. From the invoice the vendor shall pay to NCPA an administrative fee based upon the tiered fee schedule below. Vendor's annual sales shall be measured on a calendar year basis. Deadline for term of payment will be included in the invoice NCPA provides. Annual Sales Through Contract Administrative Fee 0 - $30,000,000 2% $30,000,001- $50,000,000 1.5% $50,000,001+ 1% Supplier shall maintain an accounting of all purchases made by Public Agencies under the Master Agreement. NCPA and Region 14 ESC reserve the right to audit the accounting for a period of four (4) years from the date NCPA receives the accounting. In the event of such an audit, the requested materials shall be provided at the location designated by Region 14 ESC or NCPA. In the event such audit reveals an underreporting of Contract Sales and a resulting underpayment of administrative fees, Vendor shall promptly pay NCPA the amount of such underpayment, together with interest on such amount and shall be obligated to reimburse NCPA's costs and expenses for such audit. ➢ General Provisions • This Agreement supersedes any and all other agreements, either oral or in writing, between the parties hereto with respect to the subject matter hereof, and no other agreement, statement, or promise relating to the subject matter of this Agreement which is not contained herein shall be valid or binding. ➢ Awarded vendor agrees to allow NCPA to use their name and logo within website, marketing materials and advertisement. Any use of NCPA name and logo or any form of publicity regarding this contract by awarded vendor must have prior approval from NCPA. b WAXIE requests reciprocity using the following language: NCPA and Region 14 ESC agree to allow WAXIE to use their names and logos within website, marketing materials and advertisement. Any use of WAXIE name and logo or any form of publicity regarding this contract by NCPA or Region 14 ESC must have prior approval by WAXIE. • If any action at law or in equity is brought to enforce or interpret the provisions of this Agreement or to recover any administrative fee and accrued interest, the prevailing party shall be entitled to reasonable attorney's fees and costs in addition to any other relief to which such party may be entitled. ➢ Neither this Agreement nor any rights or obligations hereunder shall be assignable by Vendor without prior written consent of NCPA. Any assignment without such consent will be void. ➢ This Agreement and NCPA's rights and obligations hereunder may be assigned at NCPA's sole discretion, to an existing or newly established legal entity that has the authority and capacity to perform NCPA's obligations hereunder ➢ All written communications given hereunder shall be delivered to the addresses as set forth below. Except where indicated otherwise, WAXIE acknowledges and agrees to all other aspects of Tab 2. National Cooperative Purchasing Alliance: Name: Matthew Mackel Title: Director, Business Development Vendor: WAXIE Sanitary Supply Name: Mike Muscara Title: Corporate Accounts Director Address: PO Box 701273 Address: 9353 Waxie Way Houston, TX 77270 Signature: Date: April11 2016 San Diego, CA 92123 Signature: A4�- Date: March 28, 2016 EST. 1.6 Region XIV Education Service Center 185o Highway 351 Abilene, TX 796oi-475o 325-675-8600 FAX 325-675-8659 Friday, October 12", 2018 Waxie's Enterprises, Inc. dba Waxie Sanitary Supply ATTN: Mike Muscara 9353 Waxie Way San Diego, CA. 92123 Re: Annual Renewal of NCPA contract #02-27 Dear Mike: Region XIV Education Service Center is happy to announce that Waxie's Enterprises, Inc. dba Waxie Sanitary Supply has been awarded a three-year term contract renewal for Comprehensive Operational and Janitorial Supplies Solutions based on the proposal submitted to Region XIV ESC. The contract will expire on April 30', 2022, completing the sixth year of a possible eight year term. If your company is not in agreement, please contact me immediately. If you have any questions or concerns, feel free to contact me at 325-675-8600. Sincerely, Shane Fields Region XIV, Executive Director