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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: MM Hardware, Inc. and L.N. Curtis & Sons. 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.
MM HARDWARD (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. Currently FY2014-2015 encumbrances and expenditures are at $31,891.61. It is anticipated that the current spending limit of $40,000 will be exceeded prior to the end of the fiscal year. Therefore, staff is requesting to exceed the $40,000 limit but not to exceed $60,000 with MM Hardware, Inc. dba Maricopa ACE Hardware.
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 $125,000. Currently the FY2014/2015 encumbrances and expenditures are at $108,155.55. The Maricopa Fire Department will be utilizing L.N. Curtis & Sons for the upgrading of the two reserve fire trucks 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 $125,000 limit but not to exceed $135,000 with L.N. Curtis & Sons 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 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: MM Hardware, Inc. and L.N. Curtis & Sons.