The Public Works Department provides a wide variety of repairs and renovations to all City buildings and infrastructure related to water, sewer and streets. This type of work requires the purchase of various hardware supplies. These purchases include small appliances, building materials, heating and air conditioning, irrigation equipment, plumbing supplies, painting and various tools/equipment. The City currently has a credit card with Home Depot to purchase hardware supplies through the Garden Grove store with the sales credit going directly to the store.

U.S. Communities nationally solicits, evaluates and awards contracts through a competitive bid process. As a member of U.S. Communities, the City is able to utilize these bid awards for cooperative purchasing agreements. Staff recommends piggybacking on the results of a recent U.S. Communities competitive bid, Contract #16154-RFP. This price includes all applicable tax and installation charges. The results deemed Home Depot as the lowest responsive bid. The approval of this three-year blanket purchase order will ensure no interruptions in the day-to-day operations of  department services.

The financial impact is $100,000.  A combination of funds will be used from the General Fund, Water Enterprise and Sewer Enterprise within the adopted City budget.  Based on previous expenditure patterns, the estimated cost breakdown is as follows:

General Fund- 60%

Water Enterprise Fund - 30%

Sewer Enterprise Fund - 10%

It is recommended that City Council:

• Authorize the City Manager or his designee to issue a three-year blanket purchase order with Home Depot Credit Services, in the amount of $100,000, for the purchase of building materials and supplies.

By: Phil Carter       

      Facilities Manager