Item 6-D

Council Meeting: 11/25/97                        Santa Monica, CA

TO:       Mayor and City Council

FROM:     City Staff

SUBJECT:  Recommendation to Award a Purchase Order to Williams
          Scotsman, Inc. for the Purchase of Two (2) Modular
          Office Units for Solid Waste Management and Beach
          Maintenance

Introduction
This report recommends the purchase of two (2) modular office
units from Williams Scotsman Inc.,  in the total amount of
$105,271.00, including applicable sales tax.

Background
One of the two modular units (60' x 24') will provide office
space for Solid Waste Management Division staff located at the
City Yards.  Due to the reorganization of the Solid Waste
Division, approved by Council in 1996, additional space is
needed.  With a City Yards master planning process underway,
modular units are the most cost-effective means of meeting space
needs, pending adoption of the plan and construction of permanent
quarters.  This unit will cost $63,559.00, including applicable
sales tax.

The second modular office unit (60' x 12') will provide office
and lunchroom space for staff located at the Beach Maintenance
facility.  Current use of a vehicle storage bay as lunchroom
space does not meet safe work standards.  The new unit would also
replace a small modular office which does not have seismic
restraints.  This unit will cost $41,712.00, including aplicable
sales tax.

Staff had originally mailed informal requests for quotations in
accordance with City Charter and Municipal Code to four (4)
vendors for a five (5) year lease/purchase of these two (2)
modular office units.  Only one (1) quotation was received from
Williams Scotsman Inc.  The other vendors stated that they were
unable to offer quotations at this time due to the high volume
orders they have received from school districts for classroom
size reduction purposes.  Staff's calculation determined that it
was more cost effective to purchase these units rather than
lease.  The total lease amount is $22,654.56 per year for five
(5) years ($113,272.80) versus the total purchase amount of
$105,271.00.

Budget/Financial Impact
The following new capital improvement project (CIP)
appropriations will be needed to finance purchase of the (2)
modular office units:

Purchase of Modular Office Units 27-710-441-20098-8900-99950 
     $63,559.00
Purchase of Modular Office Units 11-710-521-20098-8900-99950 
     $41,712.00

Sufficient balances are available in Solid Waste Management (27)
Fund and Beach Recreation (11) Fund for these new appropriations.
Recommendation
It is recommended that the award be made to Williams Scotsman
Inc. for the purchase of two (2) modular office units in the
total amount of $105,271.00, including applicable sales tax.