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HomeMy WebLinkAbout22A - SPEC AMND GRAINGER CONTRACTREQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: JANUARY 16, 2018 TITLE: CONTRACT AMENDMENT WITH GRAINGER, INC. FOR MAINTENANCE, REPAIR AND OPERATING TOOLS, EQUIPMENT AND SUPPLIES (SPEC. NO. 15-003) (STRATEGIC PLAN NO. 6,2) CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 16t Reading ❑ Ordinance on 2ntl Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER CIWJOANAGER RECOMMENDED ACTION Amend the contract with Grainger, Inc. for the purchase of non -inventory maintenance, repair and operating tools, equipment and supplies by $45,000 for an annual amount not to exceed $130,000, subject to non -substantive changes approved by the City Manager and City Attorney DISCUSSION The City establishes annual blanket orders with vendors that provide materials, supplies and services to City agencies and departments including Public Works, Police, Detention Facility, Building Maintenance and Parks and Recreation. Grainger, Inc. provides maintenance, repair and operating materials and supplies such as power tools, hardware, HVAC, electrical, plumbing, confined space and safety equipment and supplies. This contract is designed to provide City staff with quality products at competitive pricing resulting in significant savings based on quantity economy -of -scale pricing. In an effort to reduce contractual costs, departments responsible for maintenance and repairs to the City's infrastructure opted to have City staff perform some maintenance, repairs and light construction projects whenever possible. This growing volume of work during this contract period has resulted in an escalation of expenditures under this contract. Additional funds will allow staff to continue the ongoing demand for completing repairs and maintenance to the City's infrastructure. On February 3, 2015, the City Council awarded a three-year contract with provision for two one-year renewal options to Grainger, Inc. based upon a competitively bid contract awarded by the National Intergovernmental Purchasing Alliance purchasing cooperative. Staff recommends approval of the new annual amount through the end of the renewal options. STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's efforts to meet Strategic Goal #6 — Community Facilities & Infrastructure, Objective #2 (address deferred maintenance on City buildings and equipment). 22A-1 Contract Amendment for Maintenance and Repair Tools, Equipment and Supplies January 16, 2018 Page 2 FISCAL IMPACT Funds in the amount of $65,000 are available in FY 2017-18 (January — June 2018) as follows: Department Account No. FY 2017-18 Water Utility Water Production & Supply 06017640-63001 $15,000 Water System Maintenance 06017641-63001 $15,000 Police Building & Facility 01114403-63001 $13,000 Building Maintenance 1 07310100-63001 1 $12,000 Park Maintenance 1 01113250-63200 $10,000 TOTAL $65,000 Funds for the second year of the contract and the three one-year renewal periods will be budgeted and made available in FY 2018-19 to FY 2020-21 (July — December 2020) as follows: Department Account No. Anticipated Expenditure FY 2018-19 FY 2019-20 FY 2020-21 Water Utility Water Production 06017640-63001 $30,000 $30,000 $15,000 Water System Maintenance 06017641-63001 $30,000 $30,000 $15,000 Police Building & Facility1 01114403-63001 $26,000 $26,000 $13,000 Building Maintenance 07310100-63001 $24,000 $24,000 $12,000 Park Maintenance 01113250-63200 $20,000 $20,000 $10,000 Totals $130,000 1 $130,000 $65,000 Fr d Mousavipour Executive Director Public Works Agency ;al:entin Acting Chief of Police Santa Ana Police Department DS/sp APPROVED AS TO FUNDS AND ACCOUNTS: Frano�coGutierrezLkX(?z),EKr Executive Director Finance and Management Services Agency Ae Gerardo Mouet Executive Director Parks, Recreation & Community Services Agency 22A-2