HomeMy WebLinkAboutHA35270-HA35290 - 2016-17 Mid-yr Rvw-Increase - VariousCONTRACT NOS. HA35280
HA35270
HA35260
PALM DESERT HOUSING AUTHORITY HA35290
STAFF REPORT
REQUEST: AS A RESULT OF MID -YEAR REVIEW, AUTHORIZE INCREASES TO
THE NOT TO EXCEED AMOUNT FOR EXISTING AUTHORIZED
VENDORS LOWE'S HOME CENTERS, INC., HOME DEPOT U.S.A.,
INC. AND HD SUPPLY FACILITIES MAINTENANCE FOR PURCHASE
OF MATERIALS, SUPPLIES AND APPLIANCES FOR THE PALM
DESERT HOUSING AUTHORITY OWNED RESIDENTIAL RENTAL
PROPERTIES FOR FY 2016/2017
SUBMITTED BY: Jessica Gonzales, Senior Management Analyst
DATE: March 23, 2017
Recommendation
By Minute Motion, that the Housing Authority Board,
1) Authorize an increase of $10,000 in the allowed amount for the use of Lowe's Home
Centers, Inc. (Contract No. HA35280) for the purchase of materials and supplies for
the Palm Desert Housing Authority owned residential rental properties pursuant to
Section 3.32.110 of the Palm Desert Municipal Code, for FY 2016/2017, making the
annual total amount for the year not to exceed $80,000; and
2) Authorize an increase of $25,000 in the allowed amount for the use of Lowe's Home
Centers, Inc. (Contract No. HA35270) 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 2016/2017, making the annual total amount
for the year not to exceed $85,000; and
3) Authorize an increase of $25,000 in the allowed amount for the use of Home Depot
U.S.A., Inc. (Contract No. HA35260) for the purchase of materials and supplies for
the Palm Desert Housing Authority owned residential rental properties pursuant to
Section 3.32.110 of the Palm Desert Municipal Code, for FY 2016/2017, making the
annual total amount for the year not to exceed $45,000; and
4) Authorize an increase of $30,000 in the allowed amount for the use of HD Supply
Facilities Maintenance (Contract No. HA35290) for the purchase of materials and
supplies for the Palm Desert Housing Authority owned residential rental properties
pursuant to Section 3.32.110 of the Palm Desert Municipal Code, for FY 2016/2017,
making the annual total amount for the year not to exceed $175,000.
Monies are available in the FY 2016/2017 approved Palm Desert Housing Authority's operating
budget, in the appropriate Authority account.
Housing Commission Recommendation
The Housing Commission reviewed the recommendation at its regular meeting of March 8, 2017
and recommended approval.
STAFF REPORT
FY 2016/2017 Palm Desert Housing Authority Lowe's, Home Depot & HD NTE Increase
March 23, 2017
Page 2
Strategic Plan Obiective
This request does not apply to a specific strategic plan goal.
Executive Summary
As part of the 2016/2017 budget process, the Palm Desert Housing Authority Board approved
the use of Lowe's Home Centers, Inc. ("Lowe's"), Home Depot U.S.A., Inc. ("Home Depot") and
HD Supply Facilities Maintenance ("HD") for the purchase of materials, supplies and appliances
for the Palm Desert Housing Authority ("Authority") owned residential rental properties for FY
2016/2017.
Staff is requesting increases in the not -to -exceed amounts for the named vendors to facilitate
the continued routine, recurring maintenance at the properties for the remainder of fiscal year
2016/2017 as follows: for the purpose of materials and supplies, $10,000 for Lowe's, $25,000
for Home Depot, and $30,000 for HD, and for the procurement of appliances $15,000 for
Lowe's. This is due to an increase in emergency repairs of occupied units, units being turned
over to be leased and reasonable ADA accommodation requests, that have required
replacement of Packaged Terminal Air Conditioner (often abbreviated PTAC) units, water
heaters and bathroom fixtures (toilets, sinks, faucets, vanities, medicine cabinets).
Backaround
The Authority owns and operates approximately 1,100 residential rental units. Annually the
Authority purchases varying materials and supplies for the Authority owned residential rental
properties from local vendors. On April 28, 2016, the Authority Board approved the use of
Lowe's, Home Depot and HD as suppliers through a government purchasing cooperative
contract ("Contract") (A copy is on file with the City of Palm Desert's City Clerk's Office) for the
purchase of materials and supplies. Any purchases of materials and supplies under the
increased amount of will be pursuant to the terms and prices of the Contract.
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 named vendors have been utilized by the contracted management company for the
purchase of materials and supplies for routine and recurring services, supplies, and
maintenance. However, in this fiscal year there has been an increase in the annual anticipated
expenditures due to emergency repairs of occupied units, units requiring a broader scope of
work in order to be re -leased and reasonable ADA accommodation requests. The units
required repair and replacement of more items that are normally projected annually such as
PTAC heating and cooling units, water heaters, bathroom fixtures (toilets, sinks, faucets,
vanities and medicine cabinets), plumbing supplies & parts, vanities & mirrors, paint, drywall
and other general building items to make units available at varying authority properties.
Staff recommends approval of this request to facilitate the continued routine, recurring
maintenance at the properties for the remainder of fiscal year 2016/2017.
G 1HOUSING\Jess,ca Gonzales\STAFF REPORTS1201712017 SR - HA PDHA All Vendors (owes. home depot. hd) FY 2016.2017 Increase doc
STAFF REPORT
FY 2016/2017 Palm Desert Housing Authority Lowe's, Home Depot & HD NTE Increase
March 23, 2017
Page 3
Fiscal Analysis
Approval of staff's recommendation would result in an increase in the not -to -exceed amounts
authorized for the purpose of materials and supplies, $10,000 for Lowe's; $25,000 for Home
Depot and $30,000 for HD and for the procurement of appliances $15,000 for Lowe's.
Submitted by:
IL\
Department Head:
Gonzales, eni r Management Analyst Je0.0iloore, Director of finance
Lauri Aylaian, Executive Director
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G.IHOUSING\Jessica Gonzales\STAFF REPORTS1201712017 SR - HA PDHA NI Vendors (lowes, home depot, hd) FY 2016-2017 Increase.doc