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6.D. - Page 2 of 170 components (listed in the Analysis section below) have proven to be useful and durable, decreasing maintenance costs. Earlier this year, the San Mateo County Civil Grand Jury released a report encouraging cities to use "piggyback" agreements and cooperative purchasing to help save money when procuring goods and services. Most recently, on November 5, 2018, the City Council approved the Police Department's use of a piggybacking agreement for purchasing safety equipment. Staff recommends a piggyback agreement to purchase the specialized ADA park restroom facility, thereby avoiding the $50,000.00 markup that would have resulted from including the facility in the base bid. ANALYSIS The City's Purchasing Ordinance requires that equipment and supplies costing more than sixty thousand dollars ($60,000) are purchased on the open market on the basis of competitive bidding. A contract in this amount is awarded by the City Council to the lowest responsible bidder following public notice published in a newspaper of general circulation for the receipt of proposals and which notice contains a general description of the articles to be purchased, and other information pertaining to the process. The public policy behind this requirement is to maximize pricing benefits and fairness in the process for competitors in the marketplace. The Municipal Code also allows an alternative selection process on the basis that it will allow the city to obtain "maximum quality, services, or performance at minimum cost." Pursuant to Municipal Code Section 2.80, an allowed alternative process is procurement through a cooperative purchasing program (sometimes know colloquially as "piggybacking") as follows: • Purchases from vendors whose names are on current established lists and have been awarded the same type of purchase contract by a state agency, county, city or other public agency after competitive bidding processes substantially equivalent to that prescribed by the City Charter or the Purchasing Ordinance; and • Such purchases conform to the specifications thereof of the City; and • The estimated price of any such purchase is equal to or lower than that estimated for such purchase if made directly by the City pursuant to the standard competitive bidding requirements of the Purchasing Ordinance. This process allows the City to piggyback on the pricing that has been achieved through another public agency's bidding process. The most important consideration among the criteria in Section 2.80 is whether the cooperative purchasing program has followed a competitive bidding process substantially equivalent to the City's process, and whether the City is getting the benefit of the bargain. Here, this test is met because the City of Los Angeles' Request for Qualifications (RFQ) follows a process substantially similar to the City's. The City of Los Angeles' RFQ requirements and procedures are available for review in the attached document from the City of Los Angeles Department of Recreation and Parks. City of Redwood City 1017 Middlefield Road, Redwood City, CA. 94063 Tel: 650-780-7000 www.redwoodcity.ore 85