DATE: November 6, 2018
TO: Board of Mayor and Aldermen
FROM: Eric Stuckey, City Administrator
Kristine Tallent, Assistant City Administrator / CFO
Joe York, Director, Streets Department
Brian Wilcox, Purchasing Manager
SUBJECT:
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Sole-source purchase from Temple, Inc. of Decatur, Alabama in the total amount of $29,940 for a quantity of three (3) traffic signal cabinets for the Traffic Division of the Streets Department ($24,999 budgeted in 110-83530-43110 for fiscal year 2019)
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Purpose
The purpose of this procurement is to purchase for stock certain cabinet hardware for the City’s traffic signal system. This purchase does not include installation since the equipment is to be installed by City Streets Department Traffic Division employees.
Background
City Purchasing Policy allows for the following category of sole-source purchases valued at or greater than $25,000 not to require individual authorization by the Board of Mayor and Aldermen (but which shall be reported to the Board):
• Purchases of items necessary to maintain, expand or improve a manufacturer-specific system already in use by the City, and/or another governmental agency with which the City must cooperate in order to provide the public service relevant to the proposed purchase, and that requires interconnectivity of and/or communication between the component parts, so long as the product manufacturer representative has stated in writing that the vendor is the sole source available to the City, and so long as the vendor has stated in writing that the quoted pricing is the lowest municipal unit pricing available at that time and in the foreseeable future for the quantity indicated.
As the City adds or replaces cabinet hardware for the City’s traffic signal system, the new equipment must be manufactured by MoboTrex for the hardware to function correctly with the existing system. MoboTrex has indicated in writing that Temple is the sole supplier available to the City of Franklin of the MoboTrex cabinet hardware that is the subject of this procurement, and Temple has indicated in writing that the quoted pricing is the best pricing available at this time and for the foreseeable future for the quantities indicated.
Financial Impact
The traffic signal cabinet hardware needed for stock is in the total amount of $29,940. The Street Department Traffic Division budget for fiscal year 2019 allocates $24,999 out of the General Fund for purchase of signal cabinets. The quoted amount is $4941 (20%) over budget. It is expected that the existing operating budget will be able to absorb this additional expense.
Recommendation
It is recommended that the Board of Mayor and Aldermen accept this report of the appropriate application of an approved reason for a sole source purchase.