TITLE
The Mayor and City Council shall discuss and possibly take action on a request by the Purchasing Manager to approve expenditures exceeding $25,000 and previously approved limits for Fiscal Year 2014 pursuant to the City Purchasing Code, Article IV, Section 3-213(e) "Cumulative Annual Purchases in Excess of $25,000" with WIST Supply and Equipment and ACE Hardware. Discussion and Action.
AGENDA ITEM DESCRIPTION
Per the City Purchasing Code contained in Chapter 03, Article IV, Section 3-213(e) Cumulative Annual Purchases in Excess of $25,000 of the Maricopa City Code, expenditures that exceed $25,000 need to be approved by City Council prior to execution of purchase orders. Some of these Purchases will also comply with Chapter 03, Article IV, Section 3-223 Cooperative Purchasing of the Maricopa City Code. Since it is nearly impossible to predict the precise time certain operational expenditures will meet or exceed the $25,000 threshold and to keep operations running smoothly, the staff requests approval of these expenditures in excess of $25,000 and previously approved limits but not to exceed the listed dollar amount without further Council approval.
WIST SUPPLY AND EQUIPMENT CO., INC. is on a cooperative contract through the City of Mesa that the City utilizes for office supplies and equipment. On April 1, 2014 the City Council approved exceeding the $43,413.98 but not to exceed $60,000 without further Council approval. With the completion of the City Hall and Copper Sky, the expenditures have been higher than anticipated. Currently FY2014 encumbrances and expenditures are at $57,950.82. Based on anticipated additional office supplies and equipment requirements, it is believed that the $60,000 limit will be exceeded prior to the end of the fiscal year. Therefore, staff is requesting to exceed the $60,000 limit but not to exceed $75,000 with WIST Supply and Equipment Co., Inc.
MARICOPA ACE HARDWARE is a locate firm that multiple city department utilize for supplies and equipment. On July 1, 2013, the Council approved exceeding the $25,000 spending limit but not to exceed $33,866.24. Currently FY2014 encumbrances and expenditures are at $30,175.49. It is anticipated that this limit will be exceeded prior to the end of the fiscal year. Therefore, staff is requesting to exceed the $33,866.24 limit but not to exceed $40,000 with Maricopa ACE Hardware.
In order to facilitate timely purchasing of goods and services that are repetitive needs of various City departments, this request is to approve the continuing use of the identified firms. All purchases are reviewed to ensure maximum practicable competition and to ensure the prices are current.
No expenditure exceeding $25,000 or exceeding the budgetary amounts, as previously approved by Council, shall be transacted without prior Council review and approval.
This item will be presented by Brian A. Ritschel, Finance Director.
STAFF RECOMMENDATION
Staff recommends the Mayor and City Council approve the request by the Purchasing Manager to approve expenditures exceeding $25,000 and previously approved li8mits for Fiscal Year 2014 pursuant to the City Purchasing Code, Article IV, Section 3-213(e) "Cumulative Annual Purchases in Excess of $25,000" with WIST Supply and Equipment Company and Maricopa ACE Hardware.