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HomeMy WebLinkAboutQ- 4 Intergated System Supply :. , S The City,iim fo A liffiti: Qip AZUSA l i G H T & WATER For Quolity of Life June 9, 1998 1 AGENDA ITEM TO: Honorable Mayor & Members of the City Council FROM: Joseph F. Hsu, Director of Utilities/Interim City Administrator RE: Integrated System Supply(ISS) American Water Works Association Supply Specifications Water Division BACKGROUND In an effort to maintain itself on the cutting edge in the heightened arena of competition among utilities, Azusa Light&Water developed an Integrated Supply System (ISS) request for proposals. Development of the ISS is in response to"The Gore Report on Reinventing Government", by Vice President Albert Gore, 1993, wherein the book identifies major savings anticipated by streamlined processes, improved procurement systems and uses of information technology. A key method to improve or streamline procurement systems is through an integrated supply system. Water utilities gain an edge by eliminating the expense of the bidding process, purchasing and warehouse staffs, and inventory investment. An ISS is a partnership that involves the manufacturer, distributor and the utility. The partnership is created to achieve an efficient supply chain. The efficiencies in the supply chain must be equally profitable and beneficial to all parties. Each partner recognizes that they are dependent upon the other participants in order to achieve their own goals and objectives. Further, members of the ISS understand that each participant is an expert in a given field and rely upon the expert to leverage their resources to the benefit of all. Each expert assumes full responsibility in their field in order to maximize the supply chain process. Critical to the success of the ISS is the distributor's products, technical support capability, information systems and operations expertise. The key objective of the ISS is to reduce the total supply chain cost to the end user (price, acquisition, possession, distribution and installation). Azusa Light & Water Department issued Requests for Proposals to twenty waterworks suppliers, conducted interviews and evaluations,and selected the top two firms to make complete oral project presentations to an independent review panel. The independent interview panel included Rob Cunningham, Purchasing Agent, City of Arcadia,Terry,Ryan, General Manager, California-American Water Company, Mark Bower, Warehouse Supervisor,City of Pasadena,Tonya Beilstein,Office Manager,Main San Gabriel Basin Watermaster, Dan Keesey, Public Works Manager, City of La Verne, Steve Brisco,City of Azusa Finance Department, and Bob Bowcock of the Water Division. Their charge was that ISS must achieve the following: • Lower the utility's total supply chain cost. /("C-/-g • Improve the procurement and delivery cycle. • Provide a single point for purchasing of AWWA Waterworks supplies. /// / 729 N. Azusa Avenue P.O. Box 9500 Azusa, California 91702 626/812-5208 (phone) 626/334-3163 (fax) utilities@azusa.ca.gov (e-mail) • Critical to the success of the ISS is the supplier's product, technical support capability, information systems and operations expertise, experience in ISS, quality assurance & control and customer service. Each of the firms were scored based on a 100 points available system. Four categories worth 25 points each included, organizational strength, ISS experience, information system capability, and operational expertise, quality assurance & control and customer service. Western Water Works Supply Company was clearly rated highest overall by each of the raters. Bottomline, the end result will be accomplished by completing the implementation of the ISS precess. The Water Division warehouse will be operated on a contractual basis by Western Water Works Supply Company, as would any other contract agency providing professional services to the City, thus the RFP process. Western Water Works Supply Company will purchase AWWA approved products specified by the utility engineering section,stocked and maintained in our warehouse, managed by using the latest on-line information technology, generating invoices for product to our finance department on a just-in-time delivery basis. This saves the City the cost of procurement, operation, management and overhead. There will be no Water Division capital sitting idle, as we don't pay for a single product, stocked in our warehouse, until we take it off the shelf and installed in the ground. And, perhaps the greatest benefit to the Water Division and its customers'will be the benefit of having a fully stocked and managed warehouse for quicker service, not to mention the security we have in emergency situations. Copies of the full proposals are available in the Light&Water Office for you inspection. RECOMMENDATION I recommend that the City Council approve a purchase order for Western Water Works Supply Company in the amount of$50,000.00 from the City Water Division Fund and $50,000.00 from the Azusa Valley Water Fund for fiscal year 1998-99, and instruct staff to implement the final contract phase with Western Water Works Supply Company, for a multi-year agreement to be negotiated under the terms of the Request for Proposals and brought back to the City Council for final approval. PROJECT NAME & PLACE: CABLE TV PRODUCTION EQUIPMENT DATE: 6/8/98 BIDDER'S NAME: (I .e..i4t., ilf pt•-.44...0 _ ?7, 77A a7 a 1 /6", 70L/, s )-o Autrii- © del/ 4-ta-A- 7)i %/ 1 Y Y . bi o lAti...ti..e.A., 444 -7LLdiz..a ./ q8, 3�8. Q - -V GE - to . 9a, 730, `M 0 iS /,21,,, /110, °° . I, ),,,,,,,j„ 6 = i __ di_,� jae 4-,-"-� • (Space below for use of Cou,lty Clerk only) c._ r' IV THE AZUSA HERALD affiliated with SGV Newspaper Group 1210 N. Azusa Canyon Road West Covina, CA 91790 PROOF OF PUBLICATION (2015.5 C.C.P.) STATE OF CALIFORNIA NOTICE INVITING BIDS Proof PUBLIC NOTICE IS HEREBY GIVEN that the City Countil of the City of Azusa,County of Los County of Los AngelesAngeles,State of California,will receive,at the office of theCityClerk,City Hall,up to thehour"of 10 00 Ai "CABLE" a MONDAY JUN$110199B,sealed lids for CABLE PRODUCTION, I am a citizen of the United States, and a resident EQUIPMENT. of the county aforesaid; I am over the age of 1 Bids will be publicly opened and declared in the; Office of the City Clerk,City Hall,213E.Foothill eighteen years, and not a party to or interested in Blvd„ Azusa, California, at 10:00 A.M. on the above-entited matter. I am the principal clerk of Monday June 8,1998. the printer of THE AZUSA HERALD, a newspaper of Action will be taken on these bids by the City Council City of Azusa,at 7:30 P.M.,Monday,June general circulation which has been adjudicated as a 15,1998,7:30.P.M.at a regular meetingoftheCity, newspaper of general circulation by the Superior Council in the Council Chambers,City Hall Court of the County of Los Angeles, State of No bid shall be considered unless it is made on a California, on the date of October 6, 1988, andfiledposal formh provided rkatthor that above ose, sealed Case andfiledwiththeCityClerkattheaboVeaddress, Number C695704. The notice, of which the onorbefore the time specified for receivingts ublished Plans and-specifications are availableatnocost annexed is a true printed copy, has been P in the Office of the•Eity Clerk. in each regular and entired issue of said newspaper The City Council reserves the right to reietany' and not in any supplement thereof on the following and all bids or parts thereof and to waive dates, to Wit: informality in such bids.The City Also reserves the right to refect the lowest bid if the companyIS ' not a responsible bidder. -Sf1H'U3AV3M WYHC33W"d A37dW5`OWV'd3/1VI 5/28/98 I declare under penalty of perjury that the foregoing is true and correct. Executed at West Covina, LA Co. California this 28 d of MAY , 19 98 si na ure 40