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Page 2 of 4 <br />City of Redwood City 1017 Middlefield Road, Redwood City, CA. 94063 Tel: 650-780-7000 www.redwoodcity.org <br />A central element of the Hoover Park Renovation project is the installation of a water spray ground, which <br />was the most commonly requested preferred addition to activate the park during the extensive <br />community engagement process to develop a final park design. While the final construction bid <br />documents for the Hoover Park renovation are currently in the final stages of development, City staff has <br />identified a considerable financial advantage to purchasing the spray ground equipment now to be <br />included as an owner-furnished, contractor-installed element of the park renovation. <br />ANALYSIS <br />In developing the final specifications for the construction bid package, the water spray ground equipment <br />manufactured by Waterplay Solutions Corp. (Waterplay) of British Columbia, Canada was identified as the <br />best option to meet the design specifications for the Hoover Park Renovation. In the City’s discussions <br />with Waterplay, the vendor offered an opportunity to lock in pricing in early March 2025 that would not <br />be subject to increases based on the anticipated tariffs to be imposed on goods from Canada by the <br />federal government. With a pre-discount price of $355,660, a 25% tariff would add $88,915 to the price <br />of the equipment. In addition, materials purchased for projects by construction contractors are subject to <br />a markup of up to 15%, or another $53,349. By purchasing the equipment directly and locking in pre-tariff <br />savings, the City will save up to $142,264 on this purchase. Since the City began negotiations on February <br />27 to lock in pricing, Waterplay has already increased its base prices for new purchases not already under <br />negotiation. <br />The City’s Purchasing Ordinance requires that equipment and supplies costing more than $100,000 be <br />purchased on the open market on the basis of competitive bidding. The public policy behind this <br />requirement is to maximize pricing benefits and fairness in the process for competitors in the marketplace. <br />Pursuant to Municipal Code Section 2.67.1.A, an allowed alternative process is procurement through a <br />cooperative purchasing program (sometimes known colloquially as “piggybacking”), or <br />Purchasing goods and services, professional services, and construction of public works projects <br />through contracts, bid award lists, or schedules of others; provided that <br />competitive purchasing procedures reasonably similar to those required in the City, as determined by <br />the City Manager, were employed to create such contracts, bid award lists, or schedules. <br />This process allows the City to piggyback on the pricing that has been achieved through another public <br />bidding process. The bid pricing for the proposed purchase agreement was secured through Sourcewell, <br />a cooperative purchasing organization in which the City participates, and whose competitive solicitations <br />are approved by the City Manager and Finance Department for piggybacking in order to obtain the best <br />pricing while streamlining the procurement process. <br />The pricing in the proposed agreement is in line with the Engineer’s estimate for the cost of this element <br />of the Hoover Park renovation. Actual construction for the full park improvements is anticipated to begin <br />in late spring 2025, with the spray ground installation work occurring in fall/winter 2025. <br />6.K. - Page 2 of 4 <br />554