ITEM 6-P

Council Meeting:  May 28, 1991

TO:       Mayor and City Council

FROM:     City Staff

SUBJECT:  Recommendation to Award  Bid  to  Furnish  and  Deliver
          Paint and Paint Supplies, Bid 2337

Introduction

This report concerns award of bid to furnish  and  deliver  paint
and  paint  supplies  at  specified  unit prices, plus applicable
sales tax.

Background

In  response  to  published  Notices  Inviting  Bids   (published
March 21  and  22,  1991)  to furnish and deliver paint and paint
supplies  in  accordance  with  City  specifications,  bids  were
received  and  publicly opened and read on May 2, 1991.  Proposal
forms were mailed to six vendors and notices were  advertised  in
accordance  with City Charter and Municipal Code provisions.  One
proposal was received as follows:

                 Cost of a Representative Array
                   of Paint and Paint Supplies

     Dunn-Edwards Corp.                           $29,750.70

In June 1990,  Dunn-Edwards  was  awarded  the  bid  based  on  a
representative  cost of $29,868.00.  The current bid is below the
1990 bid and market inflation of 4%.   Dunn-Edwards  is  a  large
distributor of paints and paint supplies in Southern California.

The bid specifications requested firm prices on all products  for
a  one-year  period.   Three  of the "no bid" vendors stated they
could not be competitive.   Another  vendor  indicated  that  the
market was too volatile  to  hold  prices  for more than 30 days.
Staff has evaluated the low bid and  finds  that  it  meets  City
specifications.

Budget/Financial Impact

Fiscal Year 1991/92 appropriation authority for this purchase  is
in  the  maintenance  accounts  of  various  departments.  As the
materials are drawn out  of  inventory,  they  will  be  expensed
against available FY 1991/92 appropriation authority.

Recommendation

It is recommended  that  the  award  of  Bid  #2337  be  made  to
Dunn-Edwards  Corp.  at  specified  unit  prices, plus applicable
sales tax, with two one-year renewal options, as the  lowest  and
best bidder.

Prepared By:   Pamela Wortham, Acting Purchasing Agent