AGENDA MEMORANDUM

Meeting Date:           June 25, 2007

From: Mike Thornton, Purchasing Manager

Subject:                      Award of Request For Proposal (RFP) 70222 to Deluxe Systems Inc. of Florida for the purchase of new warehouse shelving.

Staff Recommendation:

Staff recommends award of RFP 70222 to Deluxe Systems Inc. of Florida for warehouse shelving for $37,761.50.

Analysis:

This purchase is to add additional shelving and replace some existing shelving in the Central Stores warehouse. 

The majority of the current warehouse shelving was installed in the early 1970’s.  The shelving is constructed from slotted angle iron and wood and is not designed for its current use.  The current shelving is inefficient and does not provide the best use of space.  It is not easily adjusted and the dimensions introduce inefficiencies.

The new shelving will be 10 foot high, fully adjustable shelving to replace the existing 6 foot high shelving.  This will provide more cubic feet of storage space in the same space currently used.  Staff can not expand the existing warehouse so the only way to gain more storage space is to go up.  The warehouse staff will also be able to easily adjust the shelving to meet the requirements of the changing stock.  The style of shelving selected will allow the warehouse to operate more efficiently by consolidating stock locations and allow for adapting to new items.  As the City grows, so will the services that can be provided by the warehouse. 

The purchase will also be adding 11 additional bays of pallet racking and one cantilever rack for the storage of long material.

The Purchasing Division issued RFP 70222 soliciting qualified firms to submit a proposal for replacing the existing warehouse shelving.  Staff received two proposals, one from Craft Equipment and the second from Deluxe Systems Inc. of Florida.  The proposals were evaluated by the warehouse and purchasing staff.  Staff  determined Deluxe Systems’ proposed shelving best met the needs of the warehouse and the type of items that are inventoried.  The shelving proposed had a higher shelf weight capacity and was a medium duty shelf as opposed to the shelving proposed by Craft Equipment.

Options:

1.  Award RFP No. 70222 to Deluxe Systems Inc. of Florida; or

2.  Such alternative action as the Commission may deem appropriate

Fiscal Impact: 

An amount of $58,000 was budgeted in fiscal year 2007 capital outlay for this project.  The actual expense is approximately $20,000 less than the budgeted amount.  The funds are available in the account listed.

Submission Date and Time:    6/20/2007 4:19 PM____

Department: _Finance_______________ Prepared by:  _Mike Thornton_________                      Attachments:         Yes_X__   No ______ Advertised:   _X__Not Required ______ Dates:   ___April 23, 2007______________                      Attorney Review :       Yes___  No ____ _________________________________            Revised 6/10/04

Reviewed by: Dept. Head ________ Finance  Dept. __________________                                    Deputy C.M. ___________________                                           Submitted by: City Manager ___________________

Account No. _001-1369-513.63-10____ Project No. __NA_________________ WF No. _____NA_________________ Budget  _____$58,000.00____________ Available ____$58,000.00____________