04-22-2019 BPU RPT 06 - Laserfiche WebLink

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W A T E R E N E R G Y T I F F id& P U B L I C U T I L I T I E S BOARD OF PUBLIC UTILITIES RIVERSIDE PUBLIC UTILITIES Board Memorandum DATE: APRIL 22, 2019 ITEM NO: 6 SUBJECT: 30% CHANGE ORDER AUTHORITY IN THE AMOUNT OF $15,000 TO EXISTING ANNUAL PURCHASE ORDER FOR CINTAS, INC. TO PROVIDE ESSENTIAL WORK SAFETY CLOTHING, FOR A TOTAL CONTRACT AMOUNT OF $65,000 FOR FISCAL YEAR 2018/19 ISSUE: Approve a 30% change order authority in the amount of $15,000 to the existing annual purchase order for Cintas, Inc. to provide essential safety clothing for employees, for a total contract amount of $65,000 for fiscal year 2018/19. RECOMMENDATION: That the Board of Public Utilities approve a 30% change order authority in the amount of $15,000 to the existing annual purchase order for Cintas, Inc. to provide essential safety clothing for employees, for a total contract amount of $65,000 for fiscal year 2018/19. BACKGROUND: Electric Field crews require specific safety clothing to perform their everyday tasks and the provision of these items is the responsibility of the Utility. Each crewmember has a uniform allocation, which includes a range of fire resistant shirts, t -shirts and heavy-duty jeans. Cintas, Inc. supplies, launders, repairs or replaces these items on a weekly basis. The original purchase order for fiscal year 2017/18 was issued in the amount of $50,000. DISCUSSION: Due to the recruitment of additional staff, there has been an increased demand for work safety clothing over the course of the year and additional safety clothing must be provided. Consequently, the amount of the original purchase order is not sufficient and the purchase order needs to be increased to $65,000 in order for Electric Field to continue to supply staff with essential safety clothing and meet its financial obligation to Cintas, Inc. Board approval is required for purchases of materials that exceed $50,000. As such, this item is being brought to the Board for approval. FISCAL IMPACT: The total fiscal impact is $65,000. Sufficient funds are available in Public Utilities Electric Field Clothing, Linen and Safety Supplies Account No. 6105000-426200.