Sparks City Council Meeting 9/10/2012 2:00:00 PM

    Monday, September 10, 2012 2:00 PM
    Sparks Legislative Building, 745 4th Street, Sparks, NV 89431

Consent Items: 5.3

Title: Consideration and possible approval of the purchase of plant mix in the amount of $60,000 during FY12/13 from multiple vendors, based upon market conditions.
Petitioner/Presenter: John A. Martini, P.E., Assistant Director of Community Services/Dan Hamlin, Operations & Maintenance Manager
Recommendation: Staff recommends that Council approve the purchase of plant mix in the amount of $60,000 during FY12/13.
Financial Impact: $100,000 of appropriations have been set aside in the approved 5 Year CIP for Program 13-0519, Road Surfacing Materials, and will be charged to Account 603485, Plant Mix, in the Capital Project Fund 1401,for this purchase.
Total Costs: $60,000.00
Fund: Road Fund    Account: 603485
Program: 1401 Road Surfacing Materials (13-0519)
Amount: $60,000.00    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 $60,000 in support of the 2012/2013 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 $60,000 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 $60,000 (cumulatively) for the balance of the fiscal year.

Alternatives: 1. Approve the purchase as presented in this staff report 2. Take no action 3. Provide the City Manager with further action

Recommended Motion: I move to approve the purchase of plant mix in the amount of $60,000 during FY12/13.

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