Report to Mayor and City Council
Tuesday, September 03, 2024
Consent
SUBJECT:
Title
CONSIDER APPROVAL TO INCREASE THE BLANKET PURCHASE ORDERS TO GRAINGER GLOBAL HOLDINGS, INC. FOR THE PURCHASE OF SUPPLIES AND MATERIALS IN THE IDENTIFIED NOT TO EXCEED AMOUNTS PER FISCAL YEAR (CITY COUNCIL).
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I. SUMMARY
City Council approval is requested to authorize the Purchasing Department to appropriate funds to a Blanket Purchase Order (“BPO”) to any vendor which will exceed the City Manager’s current expenditure authority of $75,000. With the adoption of the FY 2024-25 annual budget and the beginning of the new fiscal year on July 1, 2024, the Public Works Department has started to submit its requisitions for the services, supplies and materials needed to operate and maintain the City’s infrastructure.
Each year, the Public Works Operations Division establishes over 300 Purchase Orders with various vendors that supply the essential materials, supplies, and technical services used by our Operations and Maintenance and Fleet and Facilities Maintenance crews to carry out their daily functions. Additionally, our Fleet Maintenance and Warehouse staff require purchase orders with vendors that provide regulatory inspection, repair services and specialized parts and equipment to support the entire Public Works Department. Staff is requesting Council approval to increase the not to exceed amount for one vendor, Grainger Global Holdings, Inc. (“Grainger”) to $100,000 per fiscal year in accordance with Ordinance No. 23-2309 Section 2604.
II. RECOMMENDATION
Recommendation
TAKE the following actions:
1. WAVE the contract requirements of the Carson Municipal Code (“CMC”) pursuant to Carson Municipal Code 2605 (b)(1)(ii); and
2. AUTHORIZE the Purchasing Manager to waive the formal bidding procedures as defined by the CMC Section 2610, utilizing Cooperative Purchasing as allowed by the CMC Section 2611(g) and issue Purchase Orders for supplies and materials Grainger Global Holdings, Inc. for the period July 1, 2024, through June 30, 2027 for the not-to-exceed amounts identified.
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III. ALTERNATIVES
TAKE another action the City Council deems appropriate and consistent with the requirements of the City’s Purchasing Ordinance.
IV. BACKGROUND
The Department of Public Works is charged with providing the community with a safe, clean, and healthy environment through the design, construction, operation, maintenance, and management of the vital municipal infrastructure system. Our Street Maintenance crews are responsible for the repair and maintenance of approximately 203.1 centerline miles of streets, of which 49.2 miles are arterials, 5.7 miles are secondary arterials, 18.1 miles are collectors, and 130.1 miles are residential streets. It is always the City's goal to keep this infrastructure in excellent and safe condition for its residents to enjoy. Our Building Maintenance crews are responsible for servicing and maintaining the twelve Park Facilities, two Aquatic Centers, two swimming pools, City Hall, Corporate Yard, and the Veteran’s Sports Complex. The Operations Division processes over 300 purchase orders with various vendors to secure the essential supplies, materials and services needed to maintain the City’s infrastructure and provide services to the residents. Staff has identified Grainger Global Holdings, Inc. as one of its vendors that will exceed the $75,000 threshold as authorized under the City Manager’s authority and is not requesting City Council approval to increase the fiscal year spend authority for Grainger for a not to exceed amount of $100,000.00.
In accordance with the current Purchasing procedures, staff will continue to utilize the Sourcewell Cooperative Purchasing Agreement #091422-WWG which ensures that the pricing, terms and conditions of the supplies and equipment from this vendor remain competitive.
V. FISCAL IMPACT
None. Funds for the Purchase Orders were included in the FY 2024/25 budget from the Public Works Department accounts.
VI. EXHIBITS
1. Purchasing Waiver Draft (pg. 3)
Prepared by: Dr. Arlington Rodgers, Jr., Director of Public Works