TO:Andrew P. Powers, City Manager
FROM:Jaime Boscarino, Finance Director
DATE:September 24, 2024
SUBJECT: Cooperative Agreement for Repairs, Operations, and Supplies RECOMMENDATION:
1. Approve participation agreement with W.W. Grainger, Inc. (Lake Forest, IL), utilizing the Sourcewell (Staples, MN) cooperative agreement #091422-WWG, for facility maintenance, repair, and operations (MRO) and industrial supplies through November 8, 2026, and authorize City Manager to sign participation agreement in substantially the form as attached.
2. Authorize expenditure not to exceed $150,000 annually from various General Fund, Water Fund, Wastewater Fund, Solid Waste Management Fund, and Transportation Fund accounts.
3. Find that this action is not a project as defined under the California Environmental Quality Act.
LEVINE ACT ITEM: Yes
FINANCIAL IMPACT:
No Additional Funding Requested. $150,000 is included in the Adopted FY 2023-24 and FY 2024-25 Operating Budgets from various accounts. The additional funds for the remaining contract term will be requested during the upcoming biennial budget process.
BACKGROUND:
The City uses different types of facility MRO supplies to maintain its infrastructure.
Various departments and divisions, including Landscape, Streets, Fleet, Water, Wastewater, Hill Canyon Treatment Plant, and Facilities, rely on these supplies,
Cooperative Agreement for Repair, Operations, and Supplies September 24, 2024
tools, and equipment for their daily tasks. Commonly used items are stocked at the Municipal Service Center warehouse, while less frequently used items are ordered as needed. By utilizing a citywide purchasing agreement, the City can ensure that the necessary supplies are readily available for staff to make timely repairs and maintain efficient operations.
Pursuant to Thousand Oaks Municipal Code (TOMC) Section 3-10.203(b), the City may “piggyback” onto, or join, an existing written purchase contract obtained through a competitive bidding process prepared and awarded by another local, state, or federal government agency. For facility maintenance, repair, and operations supplies, cooperative programs generally afford better pricing based on their aggregate purchasing volume.
DISCUSSION/ANALYSIS:
In July 2022, Sourcewell, a local government unit and service cooperative for the State of Minnesota, released a Request for Proposals (RFP) for Facility MRO, Industrial, and Building-Related Supplies and Equipment. This RFP allows various governmental entities, educational institutions, non-profit organizations, tribal governments, and other public entities in the United States and Canada to participate in the cooperative agreement with the same prices, terms, and conditions. In November 2022, Sourcewell awarded a contract for facilities MRO supplies, identified as #091422-WWG, to W.W. Grainger, Inc. (Grainger). This contract is valid for four years until November 8, 2026, with the option to renew up to two times, for an additional year per extension.
Grainger offers a wide variety of in-stock items under their facility MRO supplies contract. Numerous cost savings and discounts are included, such as category discounts, hot list pricing, general catalog discounts, large order and volume discounts, customer-specific pricing, and access to all Grainger-Sourcewell contract awards and pricing benefits. City staff compared multiple cooperative agreements that Grainger had with other cooperatives and found that the Sourcewell cooperative agreement offered the highest discounts over multiple categories. The availability of in-stock items that often ship within 24 hours provides City staff with the supplies to do their work promptly.
Although individual orders are below the dollar threshold for City Council approval, the combined spending citywide in FY 2023-24 exceeded the $75,000 threshold, requiring City Council approval for the contract. Providing additional annual expenditure authority will enable staff to pay invoices from Grainger for materials purchased in FY 2023-24 and FY 2024-25 and ensure that various departments have the supplies, tools, and equipment necessary for maintaining operational Cooperative Agreement for Repair, Operations, and Supplies September 24, 2024
efficiency. Therefore, staff recommends entering into a Participation Agreement (Attachment #1) to utilize the Sourcewell cooperative agreement with Grainger.
LEVINE ACT (California Government Code § 84308):
This item is subject to the Levine Act (Attachment #2). City Councilmembers who have received a campaign contribution of more than $250 (aggregated) within the preceding 12 months from a party or their agent/representative, or a financially- interested participant involved in this proceeding may do either of the following: (1) disclose the contribution on the record and recuse themselves from this proceeding; or if applicable (2) return the portion of the contribution that exceeds $250 within 30 days from the time the official knew or should have known about the contribution, and participate in the proceeding.
All parties and their agents/representatives must disclose on the record of this proceeding any aggregated contribution of more than $250 made to any Councilmember within the preceding 12 months. Councilmembers are prohibited from accepting, soliciting, or directing a campaign contribution of more than $250 aggregated) from a party, their agent/representative, or a financially-interested participant during a proceeding and for 12 months following the date a final decision is made. In addition, a party, their agent/representative, or a financially- interested participant is prohibited from contributing more than $250 (aggregated) to a Councilmember during a proceeding and for 12 months following the date a final decision is made.
COUNCIL GOAL COMPLIANCE:
Meets the following City Council goal:
C. Operate City government in a fiscally and managerially responsible and prudent manner to ensure that the City of Thousand Oaks remains one of California's most desirable places to live, work, visit, recreate, and raise a family.
PREPARED BY: Grace Ng, Purchasing Supervisor
Attachments:
Attachment #1 – Facility MRO Supplies Participation Agreement Attachment #2 – Exhibit B Levine Act Form
FIN: 370-10\gn\H:\COMMON\Council\2024\Administration\092424 Facility MRO Supplies Cooperative Agreement Staff Report.docx