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 2015 pursuant to the City Purchasing Code, Article IV, Section 3-213(e) "Cumulative Annual Purchases in Excess of $25,000" with: Arizona Machinery Company; VIP Auto Tire Services. 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.
ARIZONA MACHINERY COMPANY operates as the repair and maintenance facility and a retail center for small equipment and supplies for Fleet, Parks, and Public Works. Currently for FY2014/2015, the encumbrances and expenditures are at $22,114.52. However, based on staff calculations, it is anticipated that we will exceed the $25,000 limit before the end of the fiscal year. Therefore, staff is requesting to exceed the $25,000 expenditure limit but not to exceed $50,000 with Arizona Machinery Company without further Council approval.
VIP AUTO TIRE SERVCIES is a local auto repair shop that multiple City departments utilize for non-warranty repairs on all vehicles. Currently the FY2014/2015 encumbrances and expenditures are at $19,101.00. Many of the repairs done by this company need to be completed quickly and based on past expenditures City Staff believes that we will exceed the $25,000 limit before the end of the fiscal year. Therefore, staff is requesting to exceed the $25,000 limit but not to exceed $50,000 with VIP Auto Tire Services 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 2015 pursuant to the City Purchasing Code, Article IV, Section 3-213(e) "Cumulative Annual Purchases in Excess of $25,000" with: Arizona Machinery Company; VIP Auto Tire Services.