COUNCIL COMMUNICATION
TO: Honorable Mayor and Council
FROM: W. Mark Clark, Maintenance Services Division Manager
SUBJECT:Title
Approve Expenditure Over $50,000 for Concrete Repair and Construction To Kelm Concrete Inc. for FY 2016-17
Body
FUNDING SOURCE:
Various Departments
PURPOSE:
Approve unplanned expenditure over $50,000 for routine and emergent concrete repairs including ADA concrete placements which exceeds the threshold under City Code Section §3.10.030.1.4 for Intermediate Purchases.
BACKGROUND:
The Lake Havasu City Operations Department, Maintenance Services Division, is requesting approval of the unplanned expenditure over $50,000 during FY 16-17, for the purchase of concrete repairs and ADA concrete placement from Kelm Concrete, Inc.
As of May 3, 2017, we have expended $44,215.61 and have anticipated work of at least $8,800 remaining. The expended work has comprised of 42 routine and emergent concrete repairs due to water main breaks, ADA concrete placements and other various public safety requirements ranging in cost from $157.08 to $5,482.84. Request for competitive quotes were obtained May 8, 2015 for a one year term with the option to renew the annual blanket purchase order for two additional terms. Three quotes were submitted. Kelm was the lowest responsive, responsible bidder. Ace Concrete initially submitted the lowest bid however they issued a written request to have it withdrawn.
In compliance with City Code Section §3.10.030.1.5 a formal competitive bid solicitation will be initiated for annual concrete repairs in FY17-18 with a future council recommendation forthcoming.
COMMUNITY IMPACT:
Using private contractors for both concrete repair and new ADA concrete placements results in a savings to the community based on their efficiency and effectiveness in accomplishing the emergent work in a responsive and timely manner.
FISCAL IMPACT:
Purchases do not exceed funds budgeted, either from MSD Operations or the Utilities repair budgets.
ATTACHMENTS:
N/A
SUGGESTED MOTION:Recommended Action
I move to approve the expenditure over $50,000 for concrete repair and construction to Kelm Concrete Inc. for FY 2016-17.