Title
Resolution to Approve an Emergency Increase to the Osburn Industries Purchase Order for Aggregate Materials (36,750.00)
Memorandum
We request your approval to increase the purchase order to Osburn Industries by $36,750.00 for the purchase of aggregate materials used in Field Operation maintenance activities, including water main breaks, winter maintenance and street repairs.
The Public Services Area solicited ITB-#4238 for aggregate materials for the period of July 1, 2012 through June 30, 2014. The bids were divided into 11 sections with each section distinguished by the type of material. Five companies provided bids. Osburn Industries was determined to be the lowest responsible bidder for 21AA Limestone, Plain Limestone Rip Rap, Heavy Limestone Rip Rap, 1x3 Commercial Limestone, and Top Soil Totaling $36,293.00 On September 4, 2012, City Council approved R-12-413 authorizing the purchase of these materials from Osburn Industries. In addition, due to contract issues with the low bidder, Osburn Industries was awarded the 2NS Sand Aggregate contract.
Due to the severe effects of the winter season, the City has experienced a greater than average number, scope and magnitude of maintenance issues which has caused us to exhaust our authorized purchases for aggregate materials with Osburn Industries prior to the end of the fiscal year. As a result, per City Code 1:315 Field operations requested an emergency purchase order increase from the City Administrator, which was subsequently approved. As required, we are returning to council to report the emergency authorization.
Osburn Industries received Contract Compliance approval on July 30, 2013 and complies with the City's Living wage requirement.
Funds in the approved Public Service Area, Field Operations Service unit operations and maintenance budgets were utilized for the emergency purchases. Upon a complete review of expenditures and system needs due to the unusually difficult winter season, Public Service will return to Council to approve the necessary budget adjustments.
Staff
Prepared by: Kirk Pennington, Field Operations Supervisor and Jody Caldwell, Field Operations Unit Manager
Reviewed by: Craig Hupy, Public Services Area Administrator
Approved by: Steven D. Powers, City Administrator
Body
Whereas, The severe winter season has resulted in the City experiencing a greater than average number, scope and magnitude of maintenance issues;
Whereas, Osburn Industries was a successful bidder of aggregate materials ITB- #4238;
Whereas, On September 4, 2012 City Council approved an annual purchase order to Osburn Industries for aggregate materials in the amount of $36,392.00;
Whereas, Current authorized purchases to Osburn Industries have been exhausted prior to the end of the fiscal year;
Whereas, The City Administrator approved Field Operations request for an emergency purchase order increase as required by City Code 1:315;
Whereas, The Public Services Area, Filed Operation Unit's operations and maintenance budgets were utilized to fund the emergency purchases; and
Whereas, The Public Service Area will return to council for the necessary budget adjustments upon a complete review of the impacts of the severe winter season;
RESOLVED, That City Council approve an increase of $36,750.00 to the Osburn Industries purchase order for the purchase of aggregate materials for a total amount for of $73,142.00; and
RESOLVED That Council authorizes the City Administrator to take the necessary administrative actions to implement this resolution.