HomeMy WebLinkAbout22C - CONTRACT WITH HOME DEPOTREQUEST FOR
COUNCIL ACTION
CITY COUNCIL MEETING DATE:
AUGUST 18, 2020
TITLE:
AMEND THE BLANKET ORDER
CONTRACT WITH HOME DEPOT FOR
CONSTRUCTION, MAINTENANCE AND
REPAIR MATERIALS, AND SUPPLIES
FOR AN ADDITIONAL$127,000 (NEW
ANNUAL AMOUNT TO NOT EXCEED
$252,000)
(SPECIFICATION NO. 17-121)
(GENERAL FUND AND
NON -GENERAL FUND)
/s/Kristine Ridge
CITY MANAGER
RECOMMENDED ACTION
CLERK OF COUNCIL USE ONLY:
F-ITNINTROMWE
❑
As Recommended
❑
As Amended
❑
Ordinance on 111 Reading
❑
Ordinance on 2ntl Reading
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Implementing Resolution
❑
Set Public Hearing For
CONTINUED TO
FILE NUMBER
Amend the blanket order contract with Home Depot by $127,000, for a new annual amount not to
exceed $252,000, for the purchase of construction, maintenance and repair materials, and
supplies, for the remainder of this contract term ending December 31, 2020, including the two one-
year renewal options, subject to non -substantive changes approved by the City Manager and City
Attorney.
DISCUSSION
On January 16, 2018, the City Council approved a blanket order contract with Home Depot for a
two-year period from January 1, 2018 to December 31, 2019, with three one-year renewals to
assist the Public Works Water Resources Division (Water Division). Specifically, the proposed
contract helps the Water Division operate and maintain twenty (20) active water wells and seven
(7) water pumping stations, which supply the City's drinking water and a sanitary sewer system
consisting of approximately 390 miles of pipelines. Home Depot provides maintenance and repair
materials such as hardware, lumber, fasteners and hand and electric tools necessary to ensure
these City assets provide a consistent level of service.
Home Depot's proximity offers a fast and efficient way for City employees to quickly obtain
materials and supplies required for daily operations, at a competitive price.
Due to COVID-19, field crews from the Public Works Water Resources Division began utilizing
satellite City facilities to limit the amount of staff at any one site. These new sites required
miscellaneous tools, materials, and equipment in order to provide a functional work environment.
Field crews were also given the directive to update/replace worn out and damaged tools, and to
purchase additional tools in order to ensure their availability. Additionally, the Parks and Recreation
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Amend Blanket Order Contract with Home Depot
August 18, 2020
Page 2
Department has recently been addressing necessary repairs and deferred maintenance on its
Senior and Recreation Centers and building new animal structures at the Santa Ana Zoo. With the
increase in purchases, the contract is being consumed at a higher rate than expected; therefore,
an increase to the annual spending limit is needed. Staff recommends increasing the total annual
spending limit by $127,000, providing a new spending limit of $252,000.
Home Depot, a Santa Ana vendor, was awarded a five-year contract after a competitive bid was
conducted by the US Communities, a national cooperative purchasing program. Santa Ana City
Ordinance No. NS-2312 authorizes the City to purchase against such contracts. The contract also
offers the City a 2% rebate on annual pre-tax purchases up to $100,000 and a 5% rebate on annual
pre-tax purchases exceeding $100,000.
FISCAL IMPACT
Funds in the amount of $127,000 are available in FY 2020-21 (August— December) for expenditure
as follows:
Department
Accounting Unit-
Fund
Accounting Unit, Account
FY 2020-
Account #
Description
Description
21
Public Works -
Sewer
05617640-63001
Sewer
Sanitary Sewer Service
$15,000
Public Works —
Water Utility Water
Water
06017640-63001
Water
Production
$30,000
Public Works -
Water
06017641-63001
Water
Water System Maintenance
$40,000
Public Works —
Water Quality and
Water
06014644-63001
Water
Measurement
$2,500
Public Works —
Water
06017645-63001
Water
Water Admin& Engineering
$2,500
Public Works —
Water
06017646-63001
Water
Water Meter Services
$10,000
Parks, Rec.
Comm. Services
01113250-63200
General
PRCSA — Park Facilities
$20,000
Parks, Rec.
Comm. Services
01113220-63001
General
PRCSA - Zoo
$2,000
Police Building &
Facility
01114403-63001
General
Building & Facility
$5,000
Amendment Total:
$127,000
Fiscal Impact Verified By: Kathryn Downs, CPA, Executive Director — Finance and Management
Services Agency
Submitted By: Nabil Saba, P.E., Executive Director, Public Works Agency
Lisa Rudloff, Executive Director. Parks, Recreation and Community Services
David Valentin, Chief of Police
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