HomeMy WebLinkAbout05 - CC-6 - Authorize a Purchase Order with Bound Tr - 12/3/2019
CITY COUNCIL AGENDA REPORT
MEETING DATE: DECEMBER 3, 2019 ITEM NUMBER: CC-6
SUBJECT: AUTHORIZE A PURCHASE ORDER WITH BOUND TREE MEDICAL, LLC
FOR SMALL DOLLAR EMERGENCY MEDICAL SUPPLIES THAT
COLLECTIVELY EXCEEDS $50,000 IN FY 2019-20 THROUGH THE
EXTENDED TERM OF COOPERATIVE AGREEMENT, SET FORTH TO
EXPIRE ON DECEMBER 31, 2019
DATE: NOVEMBER 9, 2019
FROM: FIRE & RESCUE DEPARTMENT
PRESENTATION
BY:
KRISTIN STEVENS, MANAGEMENT ANALYST
FOR FURTHER INFORMATION
CONTACT:
DANIEL STEFANO, FIRE CHIEF,
(714) 754-5144
RECOMMENDATION:
Staff recommends that the City Council authorize the City Manager to execute a Purchase
Order with Bound Tree Medical, LLC for various small dollar commodity purchases which
collectively exceeds $50,000 in FY 2019-20 through the term of the extended cooperative
agreement, set forth to expire December 31, 2019. Staff also recommends authorizing the
City Manager to execute a Purchase Order with Bound Tree Medical effective January 1,
2020 under the new cooperative agreement, should Bound Tree Medical be awarded the
contract.
BACKGROUND:
The Costa Mesa Fire and Rescue Department (CMFR) has utilized Bound Tree Medical,
LLC (Bound Tree Medical) for individual small dollar commodity purchases pertaining to
emergency medical supplies for numerous years. Individually, these purchases are in
compliance with the City’s Purchasing Policy, however, the cumulative amount for items
purchased from July 2019 through the term of the cooperative agreement exceed the
Purchasing Policies’ small dollar threshold. The current cooperative agreement was set
to expire on October 31, 2019, however it was extended through December 31, 2019. It
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is anticipated that purchases will exceed $50,000 by December 31, 2019, thereby
requiring City Council approval.
ANALYSIS:
In July 2019, staff presented to City Council a request to approve seven purchase orders
for the purchase of commodities that individually qualify as “small dollar”, but cumulatively
throughout the fiscal year may exceed $50,000. While staff is recommending the City
Council similarly authorize a purchase order with Bound Tree Medical exceeding $50,000,
this is only to the extent necessary to purchase commodities, as needed, through the
December 31, 2019 expiration of the cooperative agreement, which is currently estimated
to total $100,000 in expenses for FY 2019-20.
The Bound Tree Medical cooperative agreement is used to purchase CMFR emergency
medical supplies and first aid supplies. The contract includes cooperative language that
pursuant to Section 2-165 of the Costa Mesa Municipal Code, allows the City to purchase
goods, supplies and services through cooperative agreements to receive competitive
pricing.
In anticipation of the existing cooperative agreement’s expiration and since Bound Tree
Medical has been the primary supplier of emergency medical supplies, staff is requesting
authorization for the City Manager to execute a Purchase Order with Bound Tree Medical
under the new cooperative agreement effective January 1, 2020, should Bound Tree
Medical be awarded the contract. If Bound Tree Medical is not selected, staff anticipates
returning to the City Council in early 2020 recommending approval of a purchase order
using a different procurement method.
ALTERNATIVES CONSIDERED:
The City Council could choose not to approve staff’s recommendations. However, staff
does not recommend this alternative. This will present a delay in procurement of required
emergency supplies and a delay in operations. In addition, to return to City Council for
incremental approval to exceed $50,000 with the above mentioned vendor requires staff
time and additional workload increase.
FISCAL REVIEW:
There is funding available in the FY 2019-20 budget for the proposed purchase order. If
approved, the commodities will continue to be budgeted in subsequent fiscal years.
LEGAL REVIEW:
The City Attorney has reviewed and approved this report as to form.
CITY COUNCIL GOALS & PRIORITIES:
This item is administrative in nature.
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CONCLUSION:
Staff recommends that the City Council authorize the City Manager to execute a Purchase
Order with Bound Tree Medical, LLC for various small dollar commodity purchases which
collectively exceeds $50,000 in FY 2019-20 through the term of the extended cooperative
agreement, set forth to expire December 31, 2019. Staff also recommends authorizing the
City Manager to execute a Purchase Order with Bound Tree Medical effective January 1,
2020 under the new cooperative agreement, should Bound Tree Medical be awarded the
contract.
_________________________________ _________________________________
KRISTIN STEVENS DANIEL A. STEFANO
Management Analyst Fire Chief
________________________________ _________________________________
KELLY A. TELFORD, CPA KIMBERLY HALL BARLOW
Director of Finance City Attorney
Attachments: 1. Bound Tree Medical Cooperative Agreement and Amendment
No.’s 1-9