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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: L. N. Curtis & Sons; Mel's Auto, LLC; MM Hardware, Inc. (ACE); R & R Products, Inc.; TDIndustries, Inc.; Universal Procurement, Inc.; Waxie's Enterprises, Inc.; Wist Supply & Equipment Co., Inc.; Wingfoot Commercial Tire; WW Grainger. 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.
L.N. CURTIS & SONS is the firm utilized by the City Fire Department for Personal Protective Equipment (PPE), fire safety equipment and supplies. They are on multiple cooperative contracts that we are able to piggyback on to take advantage of cost savings. On July 1, 2014 Council approved exceeding the $25,000 limit but not to exceed $70,000. On October 21, 2014, Council approved exceeding the $70,000 limit but not to exceed a $125,000 limit. On March 7, 2015, Council approved exceeding the $125,000 limit but not to exceed $135,000. Currently the FY2014/2015 encumbrances and expenditures are at $123,206.96. The Maricopa Fire Department will be utilizing L.N. Curtis & Sons for PPE equipment and supplies and for the replacement of any defective PPE equipment as it is sent in for repairs and cleaning. Staff is requesting to exceed the $135,000 limit but not to exceed $175,000 with L.N. Curtis & Sons without further Council approval.
MEL'S AUTO, LLC is a local automotive repair and service shop that multiple City departments utilize for vehicle maintenance and service. On July 1, 2014, Council approved exceeding the $25,000 limit but not to exceed $75,000. Currently the FY2014/2015 encumbrances and expenditures are at $49,570.10. Many of the City fleet vehicles are out of warranty and the maintenance costs are higher than anticipated. After reviewing the needs of these repairs, staff is requesting to exceed the $75,000 limit but not to exceed $100,000 with Mel's Auto, LLC without further Council approval.
MM HARDWARE, INC. (dba Maricopa ACE Hardware) is a local firm that multiple city departments utilize for supplies and equipment. On July 1, 2014, the Council approved exceeding the $25,000 spending limit but not to exceed $40,000. On March 7, 2015, Council approved exceeding the $40,000 limit but not to exceed $60,000. Currently FY2014/2015 encumbrances and expenditures are at $37,828.98. It is anticipated that the current spending limit of $60,000 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 $85,000 with MM Hardware, Inc. dba Maricopa ACE Hardware without further Council approval.
R & R PRODUCTS, INC. is a leading manufacturer of replacement parts for the commercial turf industry and is utilized by the City Parks Maintenance Department for services, parts, and maintenance. Currently the FY2014/2015 encumbrances and expenditures are at $18,894.08. It is anticipated that the spending limit of $25,000 will be exceeded prior to the end of the fiscal year. Therefore, staff is requesting to exceed the $25,000 limit but not to exceed $35,000 with R & R Products, Inc. without further Council approval.
TDINDUSTRIES, INC is the firm utilized by the City for the maintenance, service and parts for the HVAC systems and various plumbing repairs at various City facilities. On February 3, 2015 Council approved exceeding the $25,000 limit but not to exceed $50,000. Currently the FY2014/2015 encumbrances and expenditures are at $43,805.03. Staff believes that the $50,000 limit will be exceeded before the end of the fiscal year. Therefore, staff is requesting to exceed the $50,000 limit but not to exceed $75,000 with TDIndustries, Inc. without further Council approval.
UNIVERSAL PROCUREMENT, INC. is a valley recognized provider of Public Safety equipment and supplies. The Maricopa Police Department has used them for uniforms and equipment. On July 1, 2014, Council approved exceeding the $25,000 limit but not to exceed $135,000. Currently the FY2014/2015 encumbrances and expenditures are at $92,029.90. Based on projected Police Department anticipated purchases, staff believes we will exceed the$135,000 limit before the end of the fiscal year. Therefore, staff is requesting to exceed the $135,000 expenditure limit but not to exceed $150,000 with Universal Procurement, Inc. without further Council approval.
WAXIE'S ENTERPRISES, 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 July 1, 2014, Council approved exceeding the $25,000 limit for FY2014/2015 but not to exceed $40,000. On February 17, 2015 Council approved exceeding the $40,000 limit but not to exceed $50,000. Currently the FY2014/2015 encumbrances and expenditures are $33,210.55. After reviewing the various departments' needs, staff believes we will exceed the $50,000 limit prior to the end of the fiscal year. Therefore, staff is requesting to exceed the $50,000 expenditure limit but not to exceed $75,000 with Waxie's Enterprise, Inc. without further Council approval.
WIST SUPPLY & EQUIPMENT CO., INC. is on a cooperative contract through the City of Mesa that the City utilizes for office supplies and equipment. On July 1, 2014 the City Council approved exceeding the $25,000 but not to exceed $75,000 without further Council approval. Currently FY2014/2015 encumbrances and expenditures are at $42,125.06. Based on anticipated additional office supplies and equipment requirements, it is believed that the $75,000 limit will be exceeded prior to the end of the fiscal year. Therefore, staff is requesting to exceed the $75,000 limit but not to exceed $100,000 with WIST Supply and Equipment Co., 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. On February 17, 2015, Council approved exceeding the $25,000 limit but not to exceed $40,000. Currently the FY2014/2015 encumbrances and expenditures are $26,895.19. After reviewing the needs with the Fire Department staff, it is believed that we will exceed $40,000 before the end of the fiscal year. Therefore, staff is requesting to exceed the $40,000 limit but not to exceed $50,000 with Wingfoot Commercial Tire without further Council approval.
WW GRAINGER is the firm that is used by multiple City departments for various tools, equipment, and inventory parts. WW Grainger in on a cooperative contract with the State of Arizona and we are able to piggyback on it for competitive pricing. On July 1, 2014 Council approved exceeding the $25,000 limit but not to exceed $70,000 limit. Currently FY2014/2015 encumbrances and expenditures are at $39,683.85 and staff believes that we will exceed the $70,000 limit prior to the fiscal year end. Therefore, staff is requesting to exceed the $70,000 expenditure limit but not to exceed $85,000 with WW Grainger 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 that the 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: L. N. Curtis & Sons; Mel's Auto, LLC; MM Hardware, Inc. (ACE); R & R Products, Inc.; TDIndustries, Inc.; Universal Procurement, Inc.; Waxie's Enterprises, Inc.; Wist Supply & Equipment Co., Inc.; Wingfoot Commercial Tire; WW Grainger.