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Home My WebLink AboutHA34510 - Lowes Home Center - PDHA Rsdntl Rntl PALM DESERT HOUSING AUTHORITY STAFF REPORT REQUEST: AUTHORIZE THE USE OF LOWE'S HOME CENTERS, INC. FOR PURPOSES OF PROCURING, DELIVERING AND RECYCLING APPLIANCES FOR THE PALM DESERT HOUSING AUTHORITY OWNED RESIDENTIAL RENTAL PROPERTIES, FOR FY 2015/2016 IN AN AMOUNT NOT TO EXCEED $50,000.00 SUBMITTED BY: Jessica Gonzales, Management Analyst - Housing DATE: June 11, 2015 CONTENTS: Lowes Letter Recommendation By Minute Motion, that the Authority Board, 1. By Minute Motion, authorize the use of Lowe's Home Centers, Inc. for the purpose of procuring, delivering and whenever appropriate, haul away and recycle appliances for the Palm Desert Housing Authority owned residential rental properties pursuant to Section 3.32.110 of the Palm Desert Municipal Code, for FY 2015/2016 in an amount not to exceed $50,000.00; and 2. Authorize the removal of inefficient, damaged, obsolete and non-functioning appliances and at such time the appliances are removed from the property authorize disposal as appropriate and declare as surplus; and 3. Elect to participate with the Cooperative Purchasing Network ("TCPN"); and 4. Authorize the Palm Desert Housing Authority's Executive Director or his designee to execute any documents necessary to effectuate the action taken herewith. Monies have been included in the FY 2015/2016 proposed Palm Desert Housing Authority's operating budget, in the appropriate Authority account. Commission Recommendation The Housing Commission reviewed the recommendation at its regular meeting of June 10, 2015. Staff will provide a verbal report upon request. Executive Summary Each fiscal year the Palm Desert Housing Authority ("Authority") replaces inefficient, damaged, obsolete or non-functioning appliances throughout all Authority owned residential rental properties from several different vendors. The Authority would like to use Lowes as the primary vendor for purchases and replacements of appliances at the rental properties. STAFF REPORT FY 2015/2016 Palm Desert Housing Authority Lowe's -Appliances June 11, 2015 Page 2 By authorizing the use of Lowe's for the Authority residential rental properties, by RPM Company, the Authority will be able to establish an account to procure, deliver and whenever appropriate, haul away and recycle inefficient, damaged, obsolete or non-functioning appliances at an accelerated efficiency during the 2015/2016 fiscal year. The Authority's annual procurement of appliances includes refrigerators with freezer, microwaves, freestanding ranges, range hoods, dishwashers and other appliance accessories. Backaround The Authority owns and operates approximately 1,000 residential rental units. Annually the Authority expends approximately $42,000.00 for appliances at the Authority owned residential rental properties from local vendors. To assist the Authority's contracted management company, RPM Company, to operate more efficiently and effectively, the Authority would like to use Lowe's Home Centers, Inc. (Lowe's) as a supplier through the government purchasing Contract No. R142104 under The Cooperative Purchasing Network ("TCPN") (A copy is on file with the City of Palm Desert's City Clerk's Office) for the purchase, delivery and whenever appropriate, haul away and recycling of appliances. TCPN is a cooperative purchasing organization, established through a collaborative effort to assist public agencies and non-profits across the United States with the specific purpose of reducing procurement costs by leveraging group volume. TCPN accomplishes this by soliciting proposals and awarding contracts that are held by a principal procurement agency for commonly purchased products and services at prices that have been assessed to be fair, reasonable, and competitive. 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 City of Palm Desert is a registered participant with TCPN. The Authority is hereby electing to participate with TCPN. Lowes has confirmed it will provide to the Authority as a participating entity, the TCPN contract terms and pricing. Lowes has also confirmed the local Palm Desert, CA store is authorized to participate under Contract No. R142104. This includes procurement, delivery and whenever appropriate, haul away and recycle of appliances for the Palm Desert Housing Authority owned residential rental properties. Lowes is invested in improving the health and sustainability of the communities it serves when possible, and offers to haul away and recycle customer's old appliances for free. The condition of the appliances to be hauled away may range from non- functioning to non-efficient or obsolete to repair. Lowes agrees that all appliances that are removed from the property will be disposed of or recycled in accordance with Environmental Protections Agency (EPA) standards for responsible appliance disposal at the the appropriate recycling centers. Any appliances not recycled by Lowes will be removed from the property and recycled in accordance with EPA standards. Such recycled appliances are hereby declared as surplus at the time they are removed from the property. Lowe's is a vendor that will be utilized by the contracted management company for the purchase of materials, supplies, maintenance items and other routine items that are of a G:WOUSING1,lessica Gonrale5lSTAFF REPORTS�201512015 PDHA Lowes�Appliances_Stalf Rpt fa FY 2015�2016 FINAL.doc STAFF REPORT FY 2015/2016 Palm Desert Housing Authority Lowe's -Appliances June 11, 2015 Page 3 continuing nature for ongoing activities (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). In addition, with this approval, Lowe's will also be utilized for the purchase of varying appliances (including but not limited to refrigerators with freezer, microwaves, freestanding ranges, range hoods, dishwashers and other appliance accessories). Staff recommends approval of this request to facilitate the continued procurement, delivery and whenever appropriate, haul away and recycle inefficient, damaged, obsolete or non-functioning appliances for the units at the properties. Fiscal Analvsis Approval of staff's recommendation would result in an expenditure in an amount not to exceed $50,000.00. Submitted by: Department Head: .--- �J si a Gonzale anagement Analyst- Housing net . Moore, Director of Housing Fi anc Dep me t: C '� '1� HOUuG AUTH �J`� Paul Gibson, Director of Finance �� . � . . � i Appr val: VERIFtEQ BY: � � � ,�., Cariginal o file with City C erk's.Offi�� /�.-, �� : /-�rn ik,J��1�rn �r� �� J M. Wohlmuth, Executive Director �� Y � � �c��n��, ��r r�lU�� z� G:IHOUSINGIJessica GonzaleslSTAFF REPORTS1201512015 PDHA Lowes-Appliances_Stafi Rpt tor FY 2015-2016 FINAL.doc 35900 MONTEREY AVENUE PALM DESERT, CA, 92211 � Phone: (760) 449-9060 ProServices Fax: (760)449-9063 5/29/2015 This letter is to confirm that RPM is a part of the Palm Desert Housing Authority an with Lowe's TCPN program. Lowe's TCPN contract # R142104 with the loca� Palm Des rt location. Thank you, Michelle Revoner Lowe's of Palm Desert i � � I � I I � i ; I ( V � � � I I ; i i , �