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HomeMy WebLinkAboutFY 2013-14 - INCREASE - PDHA - HD Supply PALM DESERT HOUSING AUTHORITY STAFF REPORT REQUEST: AUTHORIZE AN INCREASE OF $25,000.00 TO THE ALLOWED AMOUNT FOR THE USE OF HD SUPPLY FACILITIES MAINTENANCE FOR PURCHASE OF MATERIALS AND SUPPLIES FOR THE PALM DESERT HOUSING AUTHORITY OWNED RESIDENTIAL RENTAL PROPERTIES, FOR FY 2013/2014 MAKING THE ANNUAL TOTAL FOR THE YEAR NOT TO EXCEED $125,000.00 SUBMITTED BY: Jessica Gonzales, Management Analyst - Housing DATE: May 22, 2014 Recommendation By Minute Motion, that the Authority Board, 1. By Minute Motion, authorize an increase of $25,000.00 in the allowed amount for the use of HD Supply Facilities Maintenance for the purchase of materials and supplies for the Palm Desert Housing Authority owned residential rental properties for FY 2013/2014 of $25,000.00 making the annual total for the year not to exceed $125,000.00. Monies have been approved as part of the Palm Desert Housing Authority's 2013/2014 Budget. Commission Recommendation The Housing Commission reviewed the recommendation at its regular meeting of May 14, 2014. Staff will provide a verbal report upon request. Executive Summary On October 10, 2013, the Palm Desert Housing Authority Board approved the use of HD Supply Facilities Maintenance ("HD") for the purchase of materials and supplies for the Palm Desert Housing Authority owned residential rental properties for FY 2013/2014 in an amount not to exceed $100,000.00. Staff is requesting an increase of $25,000.00 to an annual total not to exceed $125,000.00. This is due to increased turnover as well as an increase in deferred work due to the uncertainty of the legislation that eliminated the former Palm Desert Redevelopment Agency. The Authority's annual purchase includes items such as garbage disposals, light fixtures, NC compressors, plumbing supplies, plumbing parts (toilet seats, stoppers, faucet spouts, etc.), hardware, bathroom fixtures (toilets, sinks, vanities, medicine cabinets), janitorial supplies (gloves, vacuum bags, cleaners, etc.), light bulbs, thermostat controls, NC filters, general building items, small tools and other routine items. STAFF REPORT FY 2013-2014 Palm Desert Housing Authority- HD May 22, 2014 Page 2 Background The Authority owns and operates approximately 1,000 residential rental units. Annually the Authority purchases materials, supplies, maintenance items and other routine items that are of a continuing nature for ongoing activities related to the Authority owned residential rental properties. In October 10, 2013, the Authority Board approved the use of HD for the purchase of material and supplies to assist the Authority's contracted management company, RPM Company, to operate more efficiently and effectively, the Authority would like use HD as a supplier through the government purchasing cooperative under the U.S. Communities ("U.S. Communities"). Under the provisions set forth in the City of Palm Desert Municipal Code, Section 3.32.110 of the Municipal Code, the Authority may obtain routine and recurring services, supplies, and maintenance by adopting a procedure approved by the City Manager. The Authority is hereby electing to participate with U.S. Communities. HD is a vendor that will be utilized by the contracted management company for varying items (including but not limited to paints, building materials, plumbing, hardware, janitorial, hand held general purpose tools and any other miscellaneous maintenance, repair and operating supplies). Supplies are typically being procured from the local Palm Desert HD's location for the desired supplies and services due to their immediate accessibility. Staff recommends approval of the increase of $25,000.00 to an annual total not to exceed $125,000.00 to facilitate the continued routine, recurring maintenance of the properties for the fiscal year 2013/2014. Fiscal Analysis Approval of staff's recommendation would result in an expenditure in an amount not to exceed $125,000.00. Submitted • De artment Head: Jes - Gonzales, Manag ment Analyst- Housing ne . Moore, Director of Housing Fin apartment: Y HOUSG AUTH 5-- 0 Pau Gibson, Director of Finance ON / proval: VERIFIED BY: ` Original on file with City Clerk's Office hn M. Wohlmuth, Executive Director (AYES: Benson, Harnik, Spiegel, Weber and Tanner; NOES: None) G:IHOUSINGIPatty Leon\JMM1staff report\HOUSING AUTHORITYIPDHA HD-Supplies_Staf Rpt for FY 2013-2014 Increase Final(2).doc