TO: Mayor and Commissioners
FROM: John Morgan, Environmental Services Director
THROUGH: Chief Neal de Jesus, Interim City Manager
DATE: February 21, 2017
Title
PRIOR APPROVAL OF FISCAL YEAR 2017 SPENDING LIMIT GREATER THAN $25,000 WITH ALLOY WELDING & FABRICATION, INC.
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Recommended Action:
Recommendation
Motion to approve multiple acquisitions of less than $25,000 each to Alloy Welding & Fabrication, Inc. for alloy welding and specialty parts fabrication services in a total not-to-exceed amount of $40,000 for Fiscal Year 2017.
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Background:
The Public Works Division in the Environmental Services Department has an on-going requirement for alloy welding and specialty parts fabrication services in order to properly maintain City facilities and vehicles. Alloy Welding & Fabrication, Inc. frequently provides the lowest quotes for these types of services and the Public Works Division is requesting approval to use Alloy Welding & Fabrication, Inc. for multiple purchases during Fiscal Year 2017 in a not to exceed amount of $40,000. To date in Fiscal Year 2017, Alloy Welding & Fabrication, Inc. has been awarded orders totaling $1,977.61.
Spending amount over the past three years
2016- $8,319.20
2015-$23,617.59
2014-$30,466.74
By approving the recommended motion, the Commission is recognizing that multiple small and unpredictable purchase decisions that are likely to occur over the course of the year will total over $25,000. This amount of spending requires prior Commission approval under the City Code of Ordinances, Chapter 36, Section 36.03(B), "Multiple Acquisitions From Vendor Exceeding Twenty-Five Thousand Dollars ($25,000.00) in Any Fiscal Year".
City Attorney Review:
Approved as to form and legal sufficiency.
Finance Department Review:
Finance recommends approval.
Funding Source:
Funding is available from several operating expense accounts.