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Home My WebLink AboutHA37140A-C FY18-19 PDHA Materials-Supplies-ApplicancesSTAFF REPORT PALM DESERT HOUSING AUTHORITY HOUSING DEPARTMENT MEETING DATE: June 14, 2018 PREPARED BY: Jessica Gonzales, Senior Management Analy REQUEST: Recommendation Authorize the use of Lowe's Home Centers, Inc., Home Depot U.S.A., Inc., and HD Supply Facilities Maintenance for Purchase of Materials, Supplies and Appliances for FY 2018/2019 By Minute Motion, that the Authority Board, 1) Authorize the use of Lowe's Home Centers, Inc., Contract No. HA 37140A for the purchase of materials, supplies and appliances pursuant to Section 3.30.160(L) and 3.30.160(E) of the Palm Desert Municipal Code, for FY 2018/2019 in an amount not to exceed $220,000 (includes approximately $115,000 for the purchase of appliances and approximately $105,000 for materials and supplies); and 2) Authorize the use of Home Depot U.S.A., Inc. Contract No. HA 37140B for the purchase of materials and supplies pursuant to Section 3.30.160(L) and 3.30.160(E) of the Palm Desert Municipal Code, for FY 2018/2019 in an amount not to exceed $45,000; and 3) Authorize the use of HD Supply Facilities Maintenance, Contract No. HA 3714oc for the purchase of materials and supplies pursuant to Section 3.30.160(L) and 3.30.160(E) of the Palm Desert Municipal Code, for FY 2018/2019 in an amount not to exceed $210,000; and 4) Authorize the disposal and recycling of inefficient, damaged, obsolete and non-functioning appliances as appropriate in accordance with EPA standards and declare as surplus at the time they are removed from the properties. Monies have been included in the FY 2018/2019 proposed Palm Desert Housing Authority's operating budget, in the appropriate Authority account. Housing Commission Recommendation The Housing Commission will review this recommendation at its regular meeting of June 13, 2018. Upon request, a verbal report will be provided at the Authority's regular meeting of June 14, 2018. June 14, 2018 — STAFF REPORT Housing Authority — FY 2018/2019 Lowe's, Home Depot & HD NTE Page 2 of 3 Strategic Plan This request does not apply to a specific strategic plan goal. Executive Summary Each fiscal year the Palm Desert Housing Authority ("Authority") replaces inefficient, damaged, obsolete or non-functioning appliances and materials throughout all Authority owned residential rental properties from several different suppliers ("vendors"). The Authority would like to use Lowe's Home Centers, Inc. ("Lowe's"), Home Depot U.S.A., Inc. ("Home Depot") and HD Supply Facilities Maintenance ("HD") as vendors through a government purchasing cooperative contract for the purchase of materials, supplies and appliances for the Authority owned residential rental properties ("Properties") for FY 2018/2019. Staff is requesting authorization to use the named vendors to facilitate the continued routine, recurring maintenance at the Properties for the purchase of materials, supplies and appliances as follows: $220,000 for Lowe's, $45,000 for Home Depot, and $210,000 for HD. Background Analysis The Authority owns and operates approximately 1,100 residential rental units. Annually the Authority purchases varying materials, supplies and appliances for the Authority owned residential rental properties from local vendors. To assist the Authority's contracted Management Company, RPM Company, to purchase routine and recurring items from these vendors at an accelerated efficiency the Authority would like to use Lowe's, Home Depot and HD as vendors during the 2018/2019 fiscal year through a government purchasing cooperative contract (The Cooperative Purchasing Network ("TCPN") and U.S. Communities ("U.S. Communities") respectively). The named vendors have been utilized by RPM for the purchase of varying items such as cabinets, countertops, garbage disposals, light fixtures, paint, building materials, some flooring, 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, A/C filters, general building items, hand held general purpose tools, varying appliances (including but not limited to refrigerators with freezer, microwaves, freestanding ranges, range hoods, dishwashers and other appliance accessories), and any other miscellaneous maintenance, repair and operating supplies. Under the provisions set forth in the City of Palm Desert Municipal Code, Section 3.30.160(L) 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 materials, supplies and appliances solicited from the named vendors have been accepted as purchases for continued routine and recurring maintenance. Further, the provisions of the City of Palm Desert Municipal Code Section 3.30.160(E), June 14, 2018 — STAFF REPORT Housing Authority — FY 2018/2019 Lowe's, Home Depot & HD NTE Page 3 of 3 allows the Authority to participate as a government entity with TCPN and U.S. Communities under their cooperative pricing for purchases through the named vendors. The named vendors have confirmed they will provide to the Authority, as a participating entity, the TCPN and U.S. Communities contract terms, products, product warranty, services and pricing. Any increases in the pricing of materials, supplies and appliances will be pursuant to the terms and prices of the government purchasing cooperative contract. The procurement of appliances from the named vendors includes delivery and, whenever appropriate, haul away and recycle of the old appliances. The condition of the appliances to be hauled away may range from non-functioning to non -efficient or obsolete to repair. Staff is requesting authorization to dispose of or recycle all appliances that are removed from the Properties in accordance with Environmental Protection Agency (EPA) standards for responsible appliance disposal at the appropriate recycling centers. Any appliances not eligible to be disposed of or recycled as part of the purchase of a new appliance through the named vendors, the Authority will dispose of or recycle in accordance with EPA standards. Such disposed of or recycled inefficient, damaged, obsolete and non-functioning appliances are hereby declared as surplus at the time they are removed from the Properties. When possible, supplies are being procured from the local Palm Desert location for the desired supplies and services. Staff recommends approval of this request to facilitate the continued routine, recurring maintenance at the Properties for the fiscal year 2018/2019. Fiscal Analysis Approval of staff's recommendation would result in an amount not to exceed expense for the named vendors to facilitate the continued routine, recurring maintenance at the Properties for the purchase of materials, supplies and appliances as follows: $220,000 for Lowe's, $45,000 for Home Depot, and $210,000 for HD. LEGAL REVIEW DEPT. REVIEW FINANCIAL REVIEW N/A Robert W. Hargreaves Ja'het Moore City Attorney Director of Finance A WV� Janet Moore Director of Finance CITY MANAGER Lauri Aylaia City Manager ATTACHMENTS: Lowe's Home Centers, Inc. Participation Letter (dated June 24, 2018) Home Depot U.S.A., Inc. Participation Letter (dated April 19, zoos) AY HOUSG AUTHDh5.j Supply Facilities Maintenance Participation Letter (dated April 25, 2018) �.�.r BY HOUSG AUT ON_. t 14- , )/' Ay6s: ttaroiL, Kelly, Ateskt"P, /Other, Onattro VERIFIED BY. RI al l\t0t . 061i-e' Original on file with City CA rk's Offic ProServices 1000 Lowe's Blvd Mooresville, NC 28117 June 24. 2018 This letter is to confirm RPM is a part of the Palm Desert Housing Authority and a part of Lowe's TCPN program. Contract # R142104 with the local Palm Desert location. Kind Regard, Hen Hua Account Executive ProServices Lowe's 909-320-1609 • SUPPLY FACILITIES MAINTENANCE HD Supply Facilities Maintenance April 25, 2018 To whom it may concern: Customer Support Center Correspondence 3400 Cumberland Blvd Atlanta. GA 30339 800-431-3000 www hdsupplysolutions com 3400 Cumberland Blvd • Atlanta GA 30339 This letter \vill serve as confirmation that, as of this date. Palm Desert Housing Authority is currently participating in the US Communities Contract #16154 with HD Supply Facilities Maintenance. Ltd. Regards. —DocuSigned by: Mew' t • t5au ter) `—D37B1FD1A2C84E5 Director, Strategic Business Development HD Supply Facilities Maintenance, Ltd. 3400 Cumberland Blvd. Atlanta, GA 30339 800-431-3000 To Whom It May Concern, 4/19/2018 This statement is intended to verify that the Palm Desert Housing Authority is a user of US Communities contract #11019. This contract is a competitively bid contract making every purchase made with Home Depot contract compliant by the state of California and its governing statutes State Statutes and contracts are found at; 1. http://www.uscommunities.org/resources/state-statutes/ca/ 2. http://www.uscommunities.org/suppliers/the-home-depot/the-home-depot-contract/ Thank you, Jacob Lever Pro Account Representative CeII: (951) 296-8446 Efax: (877) 959-0847 3800 West Chapman Avenue' Orange, CA 92868 Jacob_h_Iever @homedepot.com U.S. COMMUNITIES GOVERNMENT PURCHASING ALLIANCE