DATE: May 8, 2018
SUBJECT:
Title
RESOLUTION AUTHORIZING AMENDMENT NO. 3 TO PURCHASE ORDER NO. 50000555 WITH GRAINGER, INC. FOR GENERAL MAINTENANCE SUPPLIES AND TOOLS, INCREASING THE MAXIMUM AMOUNT PAYABLE BY $230,000 FOR A NEW MAXIMUM AMOUNT OF $580,000, FY 2018 EXPENDITURES ARE BUDGETED, ALL FUNDS REQUIRED FOR FUTURE FISCAL YEARS WILL BE BUDGETED IN THE APPROPRIATE FISCAL YEAR, SUBJECT TO BOARD APPROVAL UPON ADOPTION OF EACH FISCAL YEAR’S BUDGET
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EXECUTIVE SUMMARY:
The San Diego Unified Port District (District) issued Purchase Order No. 50000555) to Grainger, Inc. for the purchase of general maintenance supplies through a cooperative contract with the City of Tucson, Arizona, a lead agency with the National Intergovernmental Purchasing Alliance (National IPA). The District acquires general maintenance supplies and tools through this cooperative contract to support maintenance activities throughout the District. The District is requesting authorization for Amendment No. 3 to Purchases Order No. 50000555, to increase the Grainger Inc. purchase order currently in the amount of $350,000, by $230,000, for a new maximum amount of $580,000.
RECOMMENDATION:
Recommendation
Adopt a Resolution authorizing an amendment to Purchase Order No. 50000555 with Grainger Inc. for the acquisition of general maintenance supplies, increasing the maximum amount payable by $230,000 for a new maximum amount of $580,000.
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FISCAL IMPACT:
Funds for this expense of $230,000 are included in the approved FY 2018 budget within the General Services Department Maintenance Supplies account. Funds required for future fiscal years will be budgeted in the appropriate fiscal year, subject to Board approval upon adoption of each fiscal year’s budget.
Compass Strategic Goals:
This agenda item supports the following Strategic Goal(s).
• A vibrant waterfront destination where residents and visitors converge.
• A Port with a healthy and sustainable bay and its environment.
• A Port that is a safe place to visit, work and play.
DISCUSSION:
The District’s General Services Department uses general maintenance supplies and tools acquired through the purchase order with Grainger Inc. to support maintenance and repair to District facilities and infrastructures. Supplies acquired include but are not limited to the following: electrical supplies, lighting supplies, measuring tools & test instruments, fasteners, adhesives, lubricants, sealants, HVAC supplies, pumps and plumbing supplies. Supplies are acquired by District personnel on an infrequent basis throughout the year, as dictated by work assignments.
The District’s Purchase Order No. 50000555 issued to Grainger Inc. in 2013 for $45,000 was through a cooperative contract with the City of Tucson, Arizona, a lead agency with the National Intergovernmental Purchasing Alliance. Contracts are competitively solicited, evaluated and awarded by the acting lead agency in partnership with the National IPA. The current contract between Grainger and the City of Tucson/National IPA is valid through December 31, 2019.
On March 14, 2017, the Board of Port Commissioners (Board) approved to increase the purchase order with Grainger Inc., Agenda File # 2017-0006 to a maximum purchase amount of $350,000. The current purchase expenditures are over eighty percent (80%) expended, due to an increased volume of work performed; and as a result, the purchase orders maximum amount will be reached before the expiration date of the current contract.
The District’s General Services Department staff is requesting Board approval and recommends the Board authorize an increase to the purchase order with Grainger, Inc. for general maintenance supplies, increasing the maximum amount payable under the purchase order by $230,000, for a new maximum amount of $580,000.
General Counsel’s Comments:
The Office of the General Counsel has reviewed Amendment No. 3 to Purchase Order No. 50000555 with Grainger Inc. and approves as to form and legality.
Environmental Review:
The proposed Board direction or action, including without limitation, amending a purchase order for general maintenance supplies and tools, does not constitute an “approval” or a “project” under the definitions set forth in California Environmental Quality Act (CEQA) Guidelines Sections 15352 and 15378 because no direct or indirect changes to the physical environment would occur. CEQA requires that the District adequately assess the environmental impacts of projects and reasonably foreseeable activities that may result from projects prior to the approval of the same. Any project developed as a result of Board’s action that requires the District or the Board’s approval, including without limitation District proposed legislation or a request for funding will be analyzed in accordance with CEQA prior to such approval. CEQA review may result in the District, in its sole and absolute discretion, requiring implementation of mitigation measures, adopting an alternative, including without limitation, a “no project alternative” or adopting a Statement of Overriding Consideration, if required. The current Board action in no way limits the exercise of this discretion. Therefore, no further CEQA review is required.
The proposed Board action complies with Section 87 of the Port Act, which allows for construction, reconstruction, repair, maintenance, and operation of public buildings public assembly and meeting places, convention centers, parks, playgrounds, bathhouses and bathing facilities, recreation and fishing piers, public recreation facilities, including, but not limited to, public golf courses, and for all works, buildings, facilities, utilities, structures, and appliances incidental, necessary, or convenient for the promotion and accommodation of any of those uses. The Port Act was enacted by the California Legislature and is consistent with the Public Trust Doctrine. Consequently, the proposed Board action is consistent with the Public Trust Doctrine.
Finally, this does not allow for “development,” as defined in Section 30106 of the California Coastal Act, or “new development,” pursuant to Section 1.a. of the District’s Coastal Development Permit (CDP) Regulations because it will not result in, without limitation, a physical change, change in use or increase the intensity of uses. Therefore, issuance of a Coastal Development Permit or exclusion is not required. However, the District’s projects require processing under the District’s CDP Regulations. If a project is formulated as a result of Board’s action, the Board will consider approval of the project and any improvements associated after the appropriate documentation under District’s CDP Regulations has been completed and authorized by the Board, if necessary. The Board’s action in no way limits the exercise of the District’s discretion under the District’s CDP Regulations.
Equal Opportunity Program:
Not applicable.
PREPARED BY:
Pete Cruz
Department Business Manage, General Services
Attachment(s):
Attachment A: Grainger Purchase Order Agreement PO# 50000555
Attachment B: Grainger Frame Work Purchase Order Amendment No.3-PO#50000555