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HomeMy WebLinkAbout03.a. Old BusinessApril 22, 2016 TO: VIA: FROM: SUBJECT: Central Contra Costa Sanitary District FINANCE COMMITTEE ROGER S. BAILEY, GENERAL MANAGER �pf Li DAVID HEATH, DIRECTOR OF ADMINISTRATION P r THEA VASSALLO, FINANCE MANAGER INFORMATION REQUESTED ON EXPENDITURES la . At the March 28, 2016 Finance Committee meeting, the Committee requested additional information on expenditures. Below are staff's responses. Expenditure Check / in Question Date 1 #208712 2/11/16 Amount $8,975.18 2 #208865 $4,102.38 3/3/16 3 #208716 $3,471.39 2/18/16 Vendor Wave Hertz Equipment Rental Co. AAA Business Solutions Information Requested Chair Pilecki requested more information on the cost of this service, and how it compares with that of the previous vendor. Member Causey requested more information, and asked if POD has a loader. Member Causey asked if staff orders office supplies in bulk, and how frequently supplies are ordered. Mr. Bailey said staff would report back on the supplies ordering process. 1) Per IT Manager John Huie, Wave is the new name of Astound Communication. It is the same company the District has been using for a high-speed fiber optic line between HOB and CSO. It allows staff to backup data between the buildings. Data is being replicated between both locations in order to provide failover in the event of a catastrophe at either location. Mr. Huie stated that he is not aware of any cost changes. The payment that was made was much larger than usual because the District paid for a number of months' of service all at once. Accounting staff had found that the invoices were being emailed to a retired person's email address, instead of being sent by mail or fax. Staff contacted Wave, and they sent all the accumulated bills at once. Mr. Huie stated that he can go back and look at bills from last year to compare cost, if that is helpful. At staff's request, Wave now sends the bills by mail. Central Contra Costa Sanitary District Information Requested on Expenditures Page 2 of 2 2) Roy Manes, Buildings and Grounds Supervisor provided more detail below on the rentals in question: Invoice Number 28333139-003 for $1790.25 This rental was for the period of 11/3/15 to 11/10/15, for a tractor to mow and maintain the Kiewit Parcel. Invoice Number 28441268-001 for $2312.13 This rental was for the period of 1/19/16 to 2/5/16, for a tractor with a drag box attachment to complete basin road maintenance, grading along the eastern edge of Basin A North, and dumpsite clean-up. POD does not have a loader. This piece of equipment has been requested many times since Mr. Manes has been in Maintenance, since 2008. It was requested again for the next Equipment Budget. Buildings and Grounds has at least 150 acres to maintain at the Treatment Plant. 3) Purchasing and Materials Services Manager Stephanie King has provided this response in a separate memo. Staff will be available at the meeting to answer questions. TV:cg N:\ADMINSUP\ADMIN\FINANCE MANAGER\Budget and Finance Committee\Response memos\2016\3-28-16 Expenditures - memo.docx April 22, 2016 Central Contra Costa Sanitary District TO: FINANCE COMMITTEE VIA: ANN SASAKI, DEPUTY GENERAL MANAGER Ctic FROM: STEPHANIE KING, PURCHASING MANAGER S K SUBJECT: ORDERING OFFICE SUPPLIES The Committee requested information regarding the District's procedures for ordering office supplies and ordering office supplies in bulk. Effective March 14, 2016, the District changed our office supplies supplier from AAA Business Supplies to Staples. Many public agencies, including the District, do not solicit Request for Proposals for office supplies due to the wide number of government contracts available through government purchasing cooperatives, such as US Communities, Western States Contracting Alliance, National Joint Powers Alliance, and the like. The Purchasing staff evaluates these contracts periodically to determine which one best meets our needs. The decision to switch to Staples was based on price, website capabilities, account administration, delivery, customer service, and invoicing processes. The ordering process is set up so that each department can order the supplies they specifically need. There are designated personnel within each department that are in charge of ordering office supplies for their respective areas. Most divisions have a central area where general office supplies are stocked, such as post -it notes, pens, pencils, staples, tape, highlighters, paper clips, file folders, etc. Paper is ordered in bulk periodically by the Communications Services and Intergovernmental Relations. They make sure that each area, including the Reprographic Service Center, is stocked with paper. Office supplies that are not used frequently or are only used by a specific division or person are ordered on an as -needed basis. Since the majority of these items can be delivered next day with free shipping, the District utilizes the "just in time" approach to increase efficiency, decrease waste, and reduce carrying costs associated with stocking these types of supplies. Toner frequently falls into this category because there are different printer models, replacement is infrequent, and users may print to the copiers until their toner is received the next day. Purchasing's goal is to employ a process for ordering office supplies that is both efficient and cost-effective. Purchasing works well with the personnel responsible for ordering supplies and helps with issues related to the system and customer service to reconcile these promptly and effectively. Any suggestions or recommendations for improvement are welcome.