City Council Agenda Report
Meeting Date: June 20, 2023
From: Daniel S. Wall, P.E., Director of Public Works
Department: Public Works
Submitted by: Cynthia Cano, Administrative Secretary
Subject
Blanket Purchase Order with The Home Depot
Recommendation
A. Authorize a Supplemental to Fiscal Year (FY) 2022-2023 Blanket Purchase Order with The Home Depot for a total amount not-to-exceed $30,000;
B. Find that the best interests of the City are served by a direct award of a Blanket Purchase Order to The Home Depot, without a competitive selection process pursuant to Vernon Municipal Code Section 3.32.110 (B)(2); and
C. Approve the issuance of a Blanket Purchase Order with The Home Depot in an amount notto-exceed $189,250 to procure supplies for the Public Works Department and Vernon Public Utilities for operational needs and special projects for FY 2023-2024.
Background
The Public Works Department (Public Works) and Vernon Public Utilities (VPU) purchase various supplies to meet City operational needs. Typically, both departments make such purchases from The Home Depot (Home Depot) and each fiscal year blanket Purchase Orders are established to facilitate necessary purchases.
During FY 2022-2023, Public Works initiated several special projects requiring increased spending on supplies. Specifically, Public Works’ special projects included street island improvements and City Hall beautification, as well as an enhanced graffiti elimination program requiring a significant amount of paint. These projects are all still ongoing. To ensure that both Public Works and VPU staff are able to procure materials and supplies necessary for their operational needs for the remainder of FY 2022-2023, staff recommends approval of a supplemental in the amount of $30,000 to add additional funds to blanket purchase order with The Home Depot. Staff anticipates a need for increased spending to continue in FY 2023-2024, as Public Works is making a conscious effort to utilize staff on special projects and reduce spending on third-party contractors whenever possible.
To ensure that both Public Works and VPU staff are able to procure materials and supplies necessary for their operational needs and special projects for FY 2023-2024, staff is requesting the approval of a Blanket Purchase Order in an amount not to exceed $189,250. Pursuant to Vernon Municipal Code Section 3.32.030(B), City Council approval is required as the total value of the Purchase Order requested exceeds $100,000.
Staff is requesting that the City Council find that the best interests of the City are served by a direct award of a blanket Purchase Order to Home Depot, as this vendor is the nearest to the City with the inventory and breadth of products and equipment desired by the City. Other vendors in the area do not offer the variety or quantity of products available through Home Depot, thus utilizing an alternative vendor for select products would result in additional trips and time incurred by City staff in locating/purchasing necessary supplies. Although there may be vendors with comparable pricing, inventory, and product variety at locations further distanced from the City, it would be unproductive and inefficient for staff to procure supplies from those vendors, as much valuable time would be lost in transit.
Fiscal Impact
The fiscal impact is not-to-exceed $219,250. Sufficient funds for the cost of supplies are available in the current fiscal year and included in the FY 2023-2024 Budget in the Supplies Account of the Public Works and VPU Departments.
Attachments
None.