CC MEETING: April 15, 2024
DATE: March 11, 2024
TO: Erin Rinehart, City Manager
FROM: Melissa Everett, Finance Director
Chrystal Davis, Assistant City Manager
Title
Consider Authorizing The City Manager To Enter Into An Agreement With Lowe’s Home Centers, LLC Through An Interlocal Agreement With Omnia Purchasing Cooperative In An Amount Not To Exceed $80,000.00 Annually.
Body
BACKGROUND:
Lowe’s Home Centers, LLC (“Lowe’s”) through the Omnia Public Sector purchasing cooperative, provides employees access to a wide selection of maintenance, repair and operations (MRO) supplies and equipment. The Omnia contract provides discounts on items purchased in-store and online, as well as rebate tiers up to 7% based on total spend in a calendar year.
The contract also allows for the creation of a complimentary Lowe’s Pro account, which will help manage purchases made in-store and online across the approximately nine (9) departments that currently buy at Lowe’s, as well as others that want to use the account in the future. Overall, the Lowe’s Pro account will enhance the ability to track employee spend, receive in-store and online discounts, track annual rebates, and conduct analysis over the contract term to ensure compliance with City policies, overall enhancing internal controls.
FINANCIAL IMPLICATIONS:
The use of the Lowes’s account will be limited to in-store and online purchases using the employee’s P-Card and will be subject to fund availability from various department budgets in an amount not to exceed $80,000.00. The contract with Omnia also provides the City discounts in-store and online, bulk pricing options, and rebates up to 7% of total spend over $50,000.
IMPACT ON COMMUNITY SUSTAINABILITY:
This project supports and aligns with the City Council’s goals and objectives of adapting business practices to respond to changing conditions and to allocate resources for optimal results.
STAFF RECOMMENDATION/ACTION DESIRED:
Staff recommends City Council authorize the City Manager to enter into an agreement with Lowe’s Home Centers, LLC through an interlocal agreement with Omnia purchasing cooperative in an amount not to exceed $80,000.00 annually.