Sparks City Council Meeting 7/14/2014 2:00:00 PM

    Monday, July 14, 2014 2:00 PM
    Council Chambers, Legislative Bldg, 745 4th St., Sparks, NV

Consent Items: 5.3

Title: Consideration and possible approval of the purchase of plant mix in the amount of $70,000 during FY14/15 from multiple vendors, based on market conditions.
Petitioner/Presenter: Neil C. Krutz, P.E., Deputy City Manager/Dan Hamlin, Operations & Maintenance Manager
Recommendation: Staff recommends that Council approve the purchase of plant mix in the amount of $70,000 during FY14/15.
Financial Impact: $70,000 in Road Fund 1401. $150,625 was approved for Project #15-0591 Road Surfacing Materials in the FY15 CIP and $150,625 is currently available.
Total Costs: $70,000.00
Fund: Road Fund    Account: 603485
Program: 1401 - Pavement Mgmt Prog - Annual Street Surface Maint & Materials (15-0591)
Amount: $70,000.00    Budget Status: Budget Exists
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 $70,000 in support of the 2014/2015 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 $50,000. Cumulatively, the City’s needs should not exceed $70,000 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 written (faxed) quotes for the needed quantities from the local plants that have capacity and available supply to deliver per the City’s requirements. Individual Purchase Orders will then be generated to the lowest cost supplier. This process will meet the current City guidelines to seek multiple competitive quotes for individual purchases of less than $50,000 (the current formal bid limit for commodities). This agenda item is designed to authorize multiple purchases that will not exceed $70,000 (cumulatively) for the balance of the fiscal year.

Alternatives: 1.Council could approve this purchase as outlined by staff. 2.Council could deny this purchase. 3.Council could direct staff to provide alternatives to this purchase.

Recommended Motion: I move to approve the purchase of plant mix in the amount of $70,000 during FY14/15.

Attached Files:
     2014 AC Prices (2ND QTR) - COS.pdf
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