SUBJECT/RECOMMENDATION:
Title
Authorize an increase to purchase order with Fastenal Company, for citywide Facility Maintenance, Repair & Operations (MRO) Industrial and Building Supplies, including related equipment, accessories, supplies and vending services, in the amount of $600,000.00 for the final term of year 3 ending November 8, 2026, and authorize increasing the two, one-year renewal options by $350,000.00 annually for a new annual not-to exceed amount of $600,000.00, in accordance with Clearwater Code of Ordinances Section 2.563(1)(c), Piggyback or Cooperative Purchasing, and authorize the appropriate officials to execute same. (consent)
Body
SUMMARY:
This contract provides a reliable source for industrial supplies and equipment used by Public Utilities, Public Works, Clearwater Gas System, Parks & Recreation, Solid Waste and Marina to repair and maintain their facilities and equipment. The items available include a wide variety of repair and maintenance equipment and supplies including electrical, plumbing, janitorial supplies, electrical hand tools, hardware, safety equipment and supplies, lighting etc. Items will be available to departments by industrial vending machines located at department sites or at Fastenal stores. This contract allows the City to benefit from pre-negotiated prices and discounts for various items as required.
On February 2, 2023, Council approved a city-wide purchase order to Fastenal Company in an amount not to exceed $919,500.00 for the period of February 3, 2023, through November 8, 2026, with the option for two, one-year renewals at an annual not to exceed amount of $250,000.00. To date the citywide amount liquidated by Fiscal Year is as follows:
• FY23: $151,896.38
• FY24: $278,827.94
• FY25: $435,062.15
The request for additional funds is based on a citywide consumption rate that has exceeded original estimates. The initial contract value was based on historical usage patterns before the full implementation and widespread adoption of the vending services program. Since its launch, the program's convenience and efficiency have led to greater-than-anticipated use across multiple departments to meet operational requirements.
The original budget allocation for vending machine and MRO materials was based on preliminary estimates that did not fully account for the expansion of the program and the increased usage across city facilities. As the vending program has been implemented citywide, additional machines and a broader range of materials are being purchased to meet operational needs. Departments have reported increased demand for MRO supplies-such as tools, safety equipment, and facility maintenance items-due to ongoing maintenance activities and new capital projects. The expansion of vending machine locations has also required additional hardware, installation, and product stocking to ensure equitable access for all facilities. As a result, the original funding totals were underestimated. The requested increase will provide adequate funding to continue supporting operational efficiency and timely replenishment of essential materials throughout the city.
Purchases through Fastenal Company are made under a Piggyback agreement with Sourcewell Contract #091422-FAS, which is valid through November 8, 2026, and includes two, one-year renewal options.
APPROPRIATION CODE AND AMOUNT:
Budgeted funds for FY26 will come from various Operating cost centers. Funding for future fiscal years will be requested within contract calendar and spending limits.
STRATEGIC PRIORITY:
This action supports the Council’s Strategic Plan to achieve High Performing Government - 1.2 by properly maintaining City infrastructure, specifically the wastewater collection and treatment system.
