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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 2014/2015 pursuant to the City Purchasing Code, Article IV, Section 3-213(e) "Cumulative Annual Purchases in Excess of $25,000" with: M & S Equipment; Waxie's Enterprise; and Wingfoot Commercial Tire. 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 must 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.
M & S EQUIPMENT S EQUIPMENT is a local firm that performs various truck and equipment repairs for the Fleet Management Department, the Police Department, the Parks Maintenance Division, and Public Works. On October 7, 2014, City Council approved exceeding the $25,000 limit but not to exceed $50,000. Currently the FY2014/2015 encumbrances and expenditures are $35,168.16. City staff anticipates that the $50,000 limit will be exceeded due to the additional equipment and the various repairs and services that need to be addressed. Therefore, staff is requesting to exceed the $50,000 expenditure limit but not to exceed $75,000 for M & S Equipment without further Council approval.
WAXIE'S ENTERPRISE, INC. is a valley recognized provider of janitorial and sanitation supplies. They are currently on a cooperative agreement with the City of Tucson and we are able to piggyback on the contract to take advantage of the cost savings. Multiple city departments utilize them for janitorial, cleaning and sanitation supplies. On June 17, 2014, Council approved exceeding the $25,000 limit for FY2014/2015 but not to exceed $40,000. Currently the FY2014/2015 encumbrances and expenditures are $28,836.36. After reviewing the various departments' needs, staff believes we will exceed the $40,000 limit prior to the end of the fiscal year. Therefore, staff is requesting to exceed the $40,000 expenditure limit but not to exceed $50,000 with Waxie's Enterprise, Inc. without further Council approval.
WINGFOOT COMMERCIAL TIRE provides specialty type and sized tires for heavy duty equipment, including fire trucks. They are on a cooperative contract with the State of Arizona that we are able to piggyback on to take advantage of cost savings. The Maricopa Fire Department utilizes them for tires and repairs on the City's fire trucks. Currently the FY2014/2015 encumbrances and expenditures are $21,782.29. After reviewing the needs with the Fire Department staff, it is believed that we will exceed $25,000 before the end of the fiscal year. Therefore, staff is requesting to exceed the$25,000 limit but not to exceed $40,000 with Wingfoot Commercial Tire without further Council approval.
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 Mayor and City Council approve expenditures exceeding $25,000 and previously approved limits for Fiscal Year 2014/2015 pursuant to the City Purchasing Code, Article IV, Section 3-213(e) "Cumulative Annual Purchases in Excess of $25,000" with: M & S Equipment; Waxie's Enterprise; and Wingfoot Commercial Tire.