2011 2:00:00 PM

Monday, September 12, 2011 2:00 PM
City Council Chambers, Legislative Building, 745 Fourth Street, Sparks, Nevada

Consent Items: 5.5

Title: Consideration and possible approval of the purchase of plant mix in the amount of $100,000 during FY11/12 from multiple vendors, based upon market conditions - FOR POSSIBLE ACTION.

Petitioner/Presenter: John Martini, Asst.Comm. Svcs Director/Dan Hamlin, Maintenance & Operations Mgr.

Recommendation: Staff recommends that Council approve the purchase of plant mix in the amount of $100,000 during FY11/12.

Financial Impact: $200,000 of appropriations have been set aside in the approved 5 Year CIP for Project 1205610, Road Surfacing Materials, and will be charged to Account 603485, Plant Mix, in Transportation Systems, Fund 1401,for this purchase.

Business Impact (Per NRS 237):
A Business Impact Statement is not required because this is not a rule.

Agenda Item Brief: Staff is requesting approval of the purchase of plant mix in the amount of $100,000 in support of the 2011/2012 corrective maintenance program

Background: Plant mix (asphalt) is purchased on an as-needed basis by the City in order to pave and repair small areas as required. Locally, the supply of plant-mix material is limited as there are a limited number of facilities that produce the mix in use by the City. This agenda item is seeking authorization to purchase materials on an as-needed basis, utilizing a “spot-check” of market prices and availability at the time of need. The Maintenance Division is seeking advance authorization as some purchases may exceed $25,000. Cumulatively, the City’s needs should not exceed $100,000 over the balance of the fiscal year. If that were to occur, the Maintenance Division will return to the City Council to seek additional authorization.

Analysis: Due to the volatile nature of the base ingredients in plant mix (oil) and the limited local supply base, the City has historically been unable to secure a firm-fixed price via formal bidding for the materials at hand. Suppliers have generally been unable to hold prices beyond a 30-60 day period. The wish of the maintenance Division is to gain authorization via this item to make purchases on an as-needed basis using a “quick-quote” process. When the need arises, the Division will solicit writt

Alternatives: None.

Recommended Motion: I move to approve the purchase of plant mix in the amount of $100,000 during FY11/12.

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