DATE: 06/17/2026
TO: Honorable Mayor and City Council Members
Honorable President and Board
FROM: Finance Department
2026-240
REQUEST FOR CITY COUNCIL AND
CORONA UTILITY AUTHORITY ACTION
SUBJECT:
APPROVE CITYWIDE PURCHASE ORDERS FOR MATERIALS AND SUPPLIES EXECUTIVE SUMMARY:
This staff report asks the City Council to approve contract amendments and/or purchase orders with Fastenal Company in the amount of $450,000 for Fiscal Years 2027 and 2028, Grainger in the amount of $275,000 for Fiscal Year 2027, and Staples Contract and Commercial LLC in the amount of $180,000 for Fiscal Years 2027 and 2028, for citywide purchases of various materials and supplies.
RECOMMENDED ACTION:
That the City Council:
a. Approve the Ninth Amendment to the Maintenance/General Services Agreement with Fastenal Company to extend the agreement term to June 30, 2028, for Warehouse Supply and Inventory Control/Vending Machine Program Services. i. Authorize the City Manager, or his designee, to execute the Ninth Amendment to the Maintenance/General Services Agreement with Fastenal Company, including any non-substantive extensions, change orders, purchase orders, and amendments up to the amount authorized in Corona Municipal Code Section 3.08.060(H), which is equivalent to 10% of the contract amount, or $45,000.
ii. Authorize the City Manager, or his designee, to issue a purchase order with Fastenal Company in the amount of $450,000.
b. Authorize the City Manager, or his designee, to issue a Purchase Order in the amount of $275,000 with Grainger for the as-needed purchase of industrial supplies and equipment using the Sourcewell National Cooperative Master Price Agreement Number #091422-WWG.
i. Approve the use of the Sourcewell Master Price Agreement Number #091422-WWG for the purchase of industrial supplies and equipment in the amount of $275,000 for Fiscal Year 2027.
ii. Make a determination under Corona Municipal Code Section 3.08.125(A), Competitive bidding already completed, that competitive bidding has otherwise been accomplished as provided for the “Basis for Exception to Competitive Bidding” section of this agenda report.
iii. Authorize the City Manager, or his designee, to negotiate and execute nonsubstantive extensions, change orders, and amendments up to the amount authorized in Corona Municipal Code Section 3.08.080(J), which is equivalent to 10% of the contract amount, or $27,500.
c. Authorize the City Manager, or his designee, to issue a Purchase Order in the amount of $180,000 per fiscal year for Fiscal Years 2027 and 2028 with Staples Contract and Commercial LLC for the as-needed purchase of office supplies, workplace solutions, and janitorial supplies using the Sourcewell National Cooperative Master Price Agreement Numbers #070924-SCC for office supplies and workplace solutions and #082724-SCC for janitorial supplies. i. Approve the use of the Sourcewell Master Price Agreement Numbers #070924-SCC for the purchase of office supplies and workplace solutions and #082724-SCC for janitorial supplies for Fiscal Years 2027 and 2028. ii. Make a determination under Corona Municipal Code Section 3.08.125(A), Competitive bidding already completed, that competitive bidding has otherwise been accomplished as provided for the “Basis for Exception to Competitive Bidding” section of this agenda report.
iii. Authorize the City Manager, or his designee, to negotiate and execute nonsubstantive extensions, change orders, and amendments up to the amount authorized in Corona Municipal Code Section 3.08.080(J), which is equivalent to 10% of the contract amount, or $18,000.
That the Corona Utility Authority review, ratify and to the extent necessary, direct the City Council to take the above actions.
BACKGROUND & HISTORY:
The City issues agreements and purchase orders for the purchase of citywide supplies, equipment, and material annually and, when possible, the City uses cooperative agreement pricing to secure competitive pricing for these items. In some cases, the projected Citywide expenditure with certain vendors requires the City Council’s authorization prior to issuance.
ANALYSIS:
a. Approve the Ninth Amendment to the Maintenance/General Services Agreement with Fastenal Company to extend the agreement term to June 30, 2028, for Warehouse Supply and Inventory Control/Vending Machine Program Services.
The City issued an agreement and purchase order to Fastenal Company (Fastenal), for warehouse supply and inventory control/vending machine program services in 2013.
Fastenal owns and maintains the vending machines and inventory, while the city pays for items after they are dispensed from the machines. Vending is controlled through employee identification badges. Fastenal has been providing facility maintenance, lighting products, safety items, industrial supplies, and tools with the pricing provided by NASPO. ValuePoint Cooperative Purchasing agreement MA 758 2500000414. The current NASPO Cooperative Agreement expires on August 31, 2028.
Fastenal is used primarily by the Utilities Department and the Warehouse. The decision to place the inventory vending machines in the warehouse was to control inventory and provide access to various items with immediate access rather than stock in the Warehouse. Fastenal and the City periodically evaluate items in the vending machines and replace items not frequently used with newer requested inventory items.
Basis for Exception to Competitive Bidding:
Staff believes that an exception to competitive bidding is warranted for this purchase under
Corona Municipal Code (“CMC”) 3.08.125(A), which states as follows:
(A) Competitive bidding already completed. When the purchasing agent and the authorized
contracting party, with the approval of the City Manager, determines that:
(1) A competitive bid procedure has been conducted by another public agency including, but not limited to, another local agency, the state through the California Multiple Award Schedule (CMAS), the federal government through the General Services Administration (GSA), the U.S. Communities Government Purchasing Alliance, or the Western States Contracting Alliance (WSCA); and (2) The price to the city is equal to or better than the price to that public agency.
The existing agreement authorizes $450,000 per fiscal year through June 30, 2026. Staff recommends that the City Council approve the Ninth Amendment with Fastenal Company to extend the term of the agreement to June 30, 2028. This current annual amount will accommodate the normal expenditure trends plus any one-time purchases if Fastenal is the most economical solution for the purchase. The updated agreement will allow operations to continue moving forward without interruptions and provide time for staff to analyze the expenditure activity and re-evaluate the program costs and benefits. b. Authorize the City Manager, or his designee, to issue a Purchase Order in the amount of $275,000 with Grainger for the as-needed purchase of industrial supplies and equipment using the Sourcewell National Cooperative Master Price Agreement Number #091422- WWG.
The City has purchased a broad range of industrial and safety supplies from Grainger for many years. These include, but are not limited to, drill bits, electrical tape, safety equipment, and other essential materials that support the day-to-day operations and maintenance of City facilities. The City has used various competitively sourced cooperative purchasing agreements awarded to this vendor. Currently, the City is using Sourcewell National Cooperative Master Price Agreement #091422-WWG.
Sourcewell is a cooperative purchasing agency that establishes an approved vendor list for use by public entities through nationwide competitive bid processes. On July 26, 2022, Sourcewell, on behalf of Sourcewell and its current and potential member agencies, issued Request For Proposals (RFP) #091422. The solicitation was distributed to approximately 84 potential vendors. On September 14, 2022, Sourcewell received 20 proposals on the bid opening date. The proposals were evaluated on eight criteria with a total point value of 1,000. Grainger was ranked number one, receiving a total point value of 871. On November 7, 2022, the Sourcewell Board of Directors issued a four-year contract with two one-year extensions to Grainger in response to this RFP. The current contract expires in November 2027.
Staff is recommending the City take advantage of the pricing as provided through the Sourcewell contract. Grainger was selected because this firm has a cooperative purchasing agreement that allows the City to purchase items online and have them delivered the next day, at a competitive price. Grainger has items in stock that would not be available at a local hardware store that are necessary to maintain City operations.
Basis for Exception to Competitive Bidding:
Staff believes that an exception to competitive bidding is warranted for this purchase under
Corona Municipal Code (“CMC”) 3.08.125(A), which states as follows:
(A) Competitive bidding already completed. When the purchasing agent and the authorized
contracting party, with the approval of the City Manager, determines that:
(1) A competitive bid procedure has been conducted by another public agency including, but not limited to, another local agency, the state through the California Multiple Award Schedule (CMAS), the federal government through the General Services Administration (GSA), the U.S. Communities Government Purchasing Alliance, or the Western States Contracting Alliance (WSCA); and (2) The price to the city is equal to or better than the price to that public agency.
The City is a member agency of Sourcewell, and staff recommend approval of a purchase order with Grainger in the amount of $275,000 for Fiscal Year 2027. Staff believes awarding this contract is in the best interest of the City because the City is receiving prices that have been competitively bid consistent with Sourcewell’s contract price and there would be no competitive advantage gained from conducting a bid with City staff. a. Authorize the City Manager, or his designee, to issue a Purchase Order in the amount of $180,000 per fiscal year for Fiscal Years 2027 and 2028 with Staples Contract and Commercial LLC for the as-needed purchase of office supplies, workplace solutions, and janitorial supplies using the Sourcewell National Cooperative Master Price Agreement Numbers #070924-SCC for office supplies and workplace solutions and #082724-SCC for janitorial supplies.
The City has purchased office supplies, workplace solutions, and janitorial supplies from Staples Contract and Commercial LLC (Staples Advantage) for many years. This includes essential materials that support the day-to-day operations and maintenance of City facilities. Currently, the City is using Sourcewell National Cooperative Master Price Agreement Numbers #070924-SCC for office supplies and workplace solutions and #082724-SCC for janitorial supplies.
On May 16, 2024, Sourcewell, on behalf of Sourcewell and its current and potential member agencies, issued RFP #070924 for office supplies and workplace solutions. The solicitation was distributed to approximately 67 potential vendors. On July 9, 2024, Sourcewell received 19 proposals on the bid opening date. The proposals were evaluated on seven criteria with a total point value of 1,000. Staples Advantage was ranked number one, receiving a total point value of 899. On October 15, 2024, the Sourcewell Board of Directors issued a four-year contract with three one-year extensions to Staples Advantage in response to this RFP. The current contract expires in February 2029. Staff is recommending the City take advantage of the pricing as provided through the Sourcewell contract.
On July 9, 2024, Sourcewell, on behalf of Sourcewell and its current and potential member agencies, issued RFP #070924 for janitorial supplies. The solicitation was distributed to approximately 124 potential vendors. On July 9, 2024, Sourcewell received 10 proposals on the bid opening date. The proposals were evaluated on eight criteria with a total point value of 1,000. Staples Advantage was ranked number two, receiving a total point value of 856. On November 19, 2024, the Sourcewell Board of Directors issued a four-year contract with three one-year extensions to Staples Advantage in response to this RFP.
The current contract expires in February 2029. Staff is recommending the City take advantage of the pricing as provided through the Sourcewell contract.
Basis for Exception to Competitive Bidding:
Staff believes that an exception to competitive bidding is warranted for this purchase under
Corona Municipal Code (“CMC”) 3.08.125(A), which states as follows:
(A) Competitive bidding already completed. When the purchasing agent and the authorized
contracting party, with the approval of the City Manager, determines that:
(1) A competitive bid procedure has been conducted by another public agency including, but not limited to, another local agency, the state through the California Multiple Award Schedule (CMAS), the federal government through the General Services Administration (GSA), the U.S. Communities Government Purchasing Alliance, or the Western States Contracting Alliance (WSCA); and (2) The price to the city is equal to or better than the price to that public agency.
The City is a member agency of Sourcewell, and staff recommends approval of a purchase order with Staples Advantage in the amount of $180,000 for Fiscal Years 2027 and 2028. Staff believes awarding this contract is in the best interest of the City because the City is receiving prices that have been competitively bid consistent with Sourcewell’s contract price and there would be no competitive advantage gained from conducting a bid with City staff.
FINANCIAL IMPACT:
Funding for the recommended actions is included in the Adopted Fiscal Year 2027 citywide departments operating budgets. Funding for future years will be recommended through the annual budget process.
ENVIRONMENTAL ANALYSIS:
This action is categorically exempt pursuant to Section 15302 (c) of the Guidelines for the California Environmental Quality Action (CEQA), which states that a project is exempt from CEQA if the activity is covered by the commonsense exemption that CEQA applies only to projects that have a significant effect on the environment. Where is can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. This action approves an updated agreement for the procurement of goods and supplies which will not have a significant effect on the environment. Therefore, no environmental analysis is required.
PREPARED BY: NICOLE MCDANIEL, DEPUTY DIRECTOR OF FINANCE REVIEWED BY: BRUCE FOLTZ, DIRECTOR OF FINANCE
ATTACHMENTS:
1. Exhibit 1 – FASTENAL NINTH AMENDMENT