COUNCIL COMMUNICATION
TO: Honorable Mayor and Council
FROM: Tim Kellett, Deputy Director of Public Works
SUBJECT:Title
Action: Cooperative Purchase Agreement and Purchases Exceeding the Expenditure Threshold for Routine Citywide Maintenance, Repair and Operating Parts and Supplies with Ferguson Enterprises, LLC, d.b.a. Ferguson Waterworks (Tim Kellett)
Body
FUNDING SOURCE:
Various Funds
PURPOSE:
To consider approval of a Cooperative Purchase Agreement (500625) and purchases exceeding the expenditure threshold with Ferguson Enterprises, LLC, for citywide maintenance, repair and operating (MRO) supplies: industrial, building, plumbing, electrical, & HVAC materials in accordance with the Procurement Code §§ 3.10.010.3(A)(1) and 3.10.030.1.
BACKGROUND:
The Public Works Department, Water and Wastewater Utility Divisions, routinely purchase supplies to maintain the City’s infrastructure. In Fiscal Year 2023-24 Public Works had a combined spend of $265,545.56. The State of Arizona has issued a new Cooperative Contract CTR074549 beginning January 1, 2025, with an initial term of twelve (12) months and the option to extend for a maximum aggregate term of five (5) years. For example, the Water Utility Division uses a supply of various brass, copper, stainless steel, cast iron, fire hydrants, and other miscellaneous parts used in maintenance throughout the water distribution system. These are important parts and supplies to retain in inventory for repair, maintenance, and emergencies.
City staff seeks approval to exceed annual expenditures for purchase of these items for the term and any renewals of the proposed Cooperative Purchase Agreement. These authorizations are for items routinely purchased by the City and any non-routine purchases exceeding the threshold will be presented to City Council for separate consideration.
COMMUNITY IMPACT:
Purchased parts and materials will be used predominantly within the water and wastewater distribution system but may also be utilized by other City departments for routine and emergency repairs, as well as regular maintenance. Utilizing the cooperative purchase agreements for various parts and supplies provides greater efficiency and economy through leveraged pricing.
FISCAL IMPACT:
Funds for Fiscal Year 2024-25 are allocated and available within each City department to cover the cost of the MRO supplies.
ATTACHMENTS:
N/A
SUGGESTED MOTION:Recommended Actionmmended Action
I move to approve and authorize the City Manager to execute the Cooperative Purchase Agreement with Ferguson Enterprises, LLC, and authorize annual purchases under the Agreement in excess of the expenditure threshold.