Title
AUTHORIZATION TO ENTER INTO A LINKING AGREEMENT WITH AZ WASTEWATER INDUSTRIES, INC., AND APPROVE THE EXPENDITURE OF FUNDS FOR SEWER MAINTENANCE PARTS AND ACCESSORIES
Staff Contact: Craig Johnson, P.E., Director, Water Services
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Purpose and Recommended Action
Recommendation
This is a request for City Council to authorize the City Manager to enter into a linking agreement with AZ Wastewater Industries, Inc., (AWI) for the purchase of sewer maintenance parts and accessories (parts) and approve expenditure of funds in an amount not to exceed $25,000 for the initial term; and authorize the City Manager, at his discretion, to extend the agreement for four additional one-year terms, in an amount not to exceed $125,000 for the entire term of the agreement. This cooperative purchase is available through an agreement between the Pima County and AWI, contract 16-252, and can be extended through April 4, 2021.b
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Background
Glendale has 707 miles of sewer lines ranging in size from 6 inches to 54 inches in diameter. These sewer lines collect wastewater from residences and businesses and convey it to the three reclamation and treatment plants in an environmentally safe manner. Staff continually provides maintenance on the system using a variety of equipment. From time to time, this equipment needs maintenance, repair and replacement of parts. Department staff provides the installation labor and the parts are purchased as needed.
Analysis
Cooperative purchasing allows counties, municipalities, schools, colleges, and universities in Arizona to use a contract that has been competitively procured by another governmental entity or purchasing cooperative. Such purchasing helps reduce the cost of procurement, allows access to a multitude of competitively bid contracts, and provides the opportunity to take advantage of volume pricing. The Glendale City code authorizes cooperative purchases when the solicitation process utilized complies with the intent of Glendale’s procurement processes. The cooperative purchase is compliant with Chapter 2, article V, Division 2, Section 2-149 of the Glendale City Code, per review by Materials Management.
On April 5, 2016, Pima County entered into an agreement, contract 16-252, with AWI for parts. The agreement permits its cooperative use by other governmental agencies. The City of Glendale Materials Management and the City Attorney offices have reviewed and approved the utilization of this agreement for the defined parts and/or services, and concur the cooperative purchase is in the best interest of the City.
Community Benefit/Public Involvement
Maintained equipment ensures reliable wastewater services for the community. Purchasing from cooperative contracts provides both competitive and optimal pricing for equipment and services.
Budget and Financial Impacts
Funding for the annual amount is available in the Water Services FY2016-17 operating budget. Annual budget appropriation thereafter is contingent upon Council approval.
|
Cost |
Fund-Department-Account |
|
$25,000 |
2420-17630-524400, Wastewater Collections |
Capital Expense? No
Budgeted? Yes
Requesting Budget or Appropriation Transfer? No
If yes, where will the transfer be taken from?