Plant mix (asphalt) is purchased on an as needed basis by the City in order to pave and repair areas as required. Locally the supply of material is constrained 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 those 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 need should not exceed $70,000 over the balance of the fiscal year. If that were to occur, the Maintenance Division will return to the Council to seek additional authorization.

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 request of the Public Works 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 quotes for needed quantities from the local plants that have the 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.

City Council could reject the proposed purchase and provide direction to the City Manager.

I move to approve the purchase of plant mix in the amount of $70,000 during FY16/17.