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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 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 Universal Procurement, Inc.; Aquatics Environmental Systems, Inc.; Thatcher Company of AZ, Inc. 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 but not to exceed the listed dollar amount 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 7/1/2013, Council approved exceeding the $25,000 limit but not to exceed $95,975.73. Currently the fiscal year 2014 encumbrances and expenditures are at $85,123.66. Based on projected Police Department anticipated purchases, staff believes we will exceed the$95,975.73 before the end of the fiscal year. Therefore, staff is requesting to exceed the $95,975.73 expenditure limit but not to exceed $150,000 with Universal Procurement, Inc.
AQUATICS ENVIRONMENTAL SYSTEMS, INC. is a new firm that is being utilized for some of the unique and proprietary pool chemicals that is required by the pool system at Copper Sky MultiGen Center. This firm is currently on a cooperative contract with the Town of Gilbert and we are able to piggyback on that contract to take advantage of some cost savings. However, based on staff calculations, it is anticipated that the cost of these chemicals could 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 $30,000 with Aquatics Environmental Systems, Inc.
THATCHER COMPANY OF ARIZONA, INC. is currently on a cooperative contract with the City of Scottsdale for pool chemicals. With the opening of Copper Sky MultiGen Center, standard pool chemicals are needed to maintain the Aquatic Center. Staff anticipates that the costs of these chemicals could exceed the $25,000 expenditure limit before the end of the fiscal year. Therefore, staff is requesting to exceed the $25,000 expenditure limit but not to exceed $30,000 with Thatcher Company of Arizona, Inc.
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 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 Universal Procurement, Inc.; Aquatics Environmental Systems, Inc.; Thatcher Company of AZ, Inc.