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Agenda Report
May 5, 2025
TO: Honorable Mayor and City Council
FROM: Department of Public Works
SUBJECT: AUTHORIZE THE CITf MANAGER TO ENTER INTO A CONTRACT WITH W. W. GRAINGER INCORPORATED TO FURNISH AND
DELIVER PARTS, EQUIPMENT TOOLS, SUPPLIES AND
MATERIALS FOR AN AMOUNT NOT-TO-EXCEED $575,000.
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RECOMMENDATION:
It is recommended that the City Council:
1. Find that the action proposed herein is covered by the "Common Sense" exemption set forth in State CEQA Guidelines Section 15061(b)(3) as CEQA only applies to projects that may have a significant effect on the environment;
2. Authorize the City Manager to enter into a contract with W. W. Grainger, Incorporated to furnish and deliver Parts, Equipment, Tools, Supplies and Materials, in an amount not to exceed $575,000, which includes the base contract amount of $500,000 and a contingency of $75,000 to provide for any necessary change orders.
Competitive price bidding is not required pursuant to City Charter Section 1002(H) (Contracts with other governmental entities or their contractors for labor, material, supplies or services; and
3. Grant the recommended contract an exemption from the Competitive Selection process pursuant to Pasadena Municipal Code Section 4.08.049(8) contract for which the City's best interests are served.
BACKGROUND:
The Department of Public Works, Building Systems and Fleet Management Division (BSFMD) is responsible for maintaining and performing needed preventative maintenance and repairs to City facilities. BSFMD also maintains a warehouse to store commonly used parts so preventative maintenance, installation and repairs can be completed efficiently.
BSFMD recommends a contract with W. W. Grainger, Inc. (Grainger) utilizing the National Intergovernmental Purchasing Alliance Company dba as OMNIA Partners (OMNIA).
OMNIA is the largest cooperative purchasing agency for public sector procurement that nationally solicits, evaluates and awards contracts through a competitive selection process MEETING OF.05/05/2025AGENDA ITEM NO.3
Contract Award to HD Supply
May 5, 2025
on behalf of its members to ensure the lowest pricing available. The city has been a participating OMNIA member since December 2007.
Grainger was awarded a contract number 240078-01, effective January 1, 2025, with an initial term expiration date of December 31, 2027, by the lead government agency of the City of Tucson, AZ under RFP #240078 to establish a national cooperative contract for Maintenance Repair and Operations (MRO) Supplies, Parts, Equipment, Materials and Related Services. Grainger has agreed to honor the contract bid pricing from the OMNIA contract with the City of Pasadena. The contract includes category discounts ranging from 5 percent to 32 percent off catalog prices and it would be in the best interest of the City to utilize this government contract. The City has previously done business with Grainger, issuing purchase orders totaling $538,588 since Fiscal Year 2016.
Staff recommends Grainger be awarded a contract for a total not-to-exceed amount of $575,000 which includes a 15 percent contingency or until the OMNIA contract expiration date of December 31, 2027, whichever comes first, for the purchase of Parts, Equipment, Tools, Supplies and Materials which will be shared by both subdivisions, Fleet and Buildings of BSFMD, and utilized to maintain the warehouse inventory.
COUNCIL POLICY CONSIDERATION:
This authorization supports the City Council's strategic planning goal to maintain fiscal responsibility and stability, improve, maintain, and enhance public facilities and infrastructure, support and promote the quality of life and local economy and to ensure public safety.
ENVIRONMENTAL IMPACT:
The proposed action has been determined to be exempt from the California Environmental Quality Act (CEQA) pursuant to State CEQA Guidelines Section 15061(b)(3), the "Common Sense" exemption that CEQA applies only to projects which have the potential for causing a significant effect on the environment.
Contract Award to HD Supply
May 5, 2025
FISCAL IMPACT:
The total cost of this contract including contingency is $575,000. Funding for this action will be addressed by the utilization of existing budgeted appropriations in account 50222050- 810100, Building Maintenance Fund (502) and account 51122058-810100, Fleet Maintenance Fund (511). There is no impact to the General Fund.
Respectfully submitted,
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GREGDEVINCK.P.E.
Director of Public Works
Prepared by:
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Thanos Gauthier
Public Works Administrator BSFMD
Approved by:
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MIGUEn^/IARQUEZ
City Manager