For City Council Meeting [August 13, 2019]
TO: Honorable Mayor and City Council
APPROVAL: Rod Foster, City Administrator
FROM: Sean Grayson, Acting Public Works Director
Title
Request City Council to Authorize the Issuance of a Purchase Order with Home Depot in the amount of $49,000 for Fiscal Year 2019/2020.
Body
BACKGROUND:
The City of Rialto Public Works Department maintains all of the City facilities, parks, streets, fleet and irrigation systems on an annual basis. As maintenance work is needed, City staff obtains general supplies and materials required for the work. These supplies are typically purchased based on specific project or job being completed and include small quantities of general building or yard improvement items such as lumber, concrete, electrical components, small plants, fertilizers, hand tools, batteries, paint, screws, nuts, nails and bolts.
ANALYSIS/DISCUSSION:
The Public Works Department, over recent years, has purchased between $15,000 and $46,000 in supplies and materials from Home Depot. Amounts spent are based on actual need with increases due to aging Facilities and Parks requiring a higher level of maintenance and repairs.
The City’s Purchasing Ordinance Section 2.48.210 General - CPA (Piggybacking) authorizes “the Purchasing Manager to purchase supplies, materials, equipment and contractual services through legal contracts of other governmental jurisdictions or public agencies without further contracting, solicitation or formal bidding.” Home Depot is under contract with a nationally recognized Cooperative Purchasing Agreement (CPA), which is a national contract that government entities may choose to “piggyback” on. Home Depot has contract No. 16154-RFP with the US Communities Government Purchasing Alliance. The Purchasing Manager has verified that all the elements required for piggybacking onto the national contract are satisfied to support the City’s purchases from Home Depot. A copy of the contract information from US Communities is included in Attachment 1.
Participation in the CPA with Home Depot provides Rialto with a discount offered to public agencies. The annual supplies and materials needed by Public Works for fiscal year 2019/2020 is estimated not to exceed $49,000.
ENVIRONMENTAL IMPACT:
Approval of the purchases of materials and supplies is not a “Project” as defined by the California Environmental Quality Act (CEQA). Pursuant to Section 15378(a), a “Project” means the whole of an action, which has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment. According to Section 15378(b), a Project does not include: (5) Organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment.
GENERAL PLAN CONSISTENCY:
Authorizing purchase orders for purchases of maintenance supplies and materials is consistent with Guiding Principle 3A in the General Plan:
Our City government will lead by example, and will operate in an open, transparent, and responsive manner that meets the needs of the citizens and is a good place to do business.
Approval of this action also complies with the City of Rialto General Plan Goal and Policies:
Goal 3-11: Provide community facilities that adequately support established programs, can accommodate future needs, and are accessible to all members of the community.
Policy 3-11.1: Allocate resources for the maintenance and operations of City facilities; explore alternative funding options for maintenance and operational costs of new facilities.
LEGAL REVIEW:
The City Attorney has reviewed and approved the staff report.
FINANCIAL IMPACT:
Funds are budgeted and available in the accounts as listed in the table below for maintenance supplies and materials with Home Depot:
A copy of the Disclosure Form has been included as Attachment 2.
Operating Budget Impact:
It is anticipated that no additional operating budget impact will be noticed unless City Facilities experience numerous repairs throughout the year requiring substantial additional materials.
Capital Improvement Budget Impact:
There is no impact to the Capitol Improvement Budget as this Purchase Order is for maintenance.
Business Licensing:
A Business License application and payment of a Business License tax at the Professional Service rate in the amount of $79.00 will be paid by the vendor prior to execution of the Professional Service Agreement/Construction Contract/Purchase Order.
RECOMMENDATION:
Staff recommends that City Council authorize the issuance of a Purchase Order to Home Depot in the amount of $49,000 for fiscal year 2019/2020.