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. Home Depot has agreed for the City to purchase its hardware supplies through the Home Depot store located in Garden Grove with the sales credit going directly to the store.

In October 2018, the City Council approved a three-year blanket purchase order in the amount of $100,000 through the U.S. Communities competitive bid, Contract #16154-RFP. This blanket purchase order helps to ensure no interruptions in the day-to-day operations of the department services. Since then, expenses have increased and reached their funding limit. Therefore, staff recommends increasing the purchase order $150,000 for the remaining term that ends in October 2021.

The financial impact is $150,000 using a combination of funds from the General Fund, Water Enterprise and Sewer Enterprise, within the existing Public Works budget. Based on previous expenditure patterns, the estimated cost breakdown is the following:

General Fund- 60%

Water Enterprise Fund- 30%

Sewer Enterprise Fund-10%

It is recommended that City Council:

• Authorize the Finance Director to amend the three-year blanket purchase order with Home Depot Credit Services by allocating an additional $150,000 for the purchase of building materials and supplies.

By: Phil Carter      

Facilities Manager