(12)AR 091608 Change Order - Laserfiche WebLink

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CITY OF COLTON AGENDA REPORT FOR THE COUNCIL MEETING OF September 16, 2008 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: DILU DE ALWIS, FINANCE DIRECTOR SUBJECT: CHANGE ORDER TO BLANKET PURCHASE ORDERS NOT TO EXCEED THE AGGREGATE AMOUNT OF $2,247,000. DATE: SEPTEMBER 9, 2008 ITEM #13 BACKGROUND: The Purchasing Department utilizes a variety of tools to purchase or contract for supplies, services and equipment required by the City, including the use of un -encumbered Blanket Purchase Orders (BPO). These BPO's are used to make many purchases throughout the year, which are less than $25,000 and do not require competitive bidding. Increased fuel prices are affecting many industries. In addition to direct fuel costs (Poma) on the rise, vendors are passing their costs on to its customers in the form of increased prices and fuel surcharges, as reflective in the increased estimated annual usage on the attached table. DISCUSSION/ANALYSIS: In July, 2008, the Purchasing Department issued blanket purchase orders (BPO) to the following 22 vendors, each not to exceed $25,000 authority granted to the Purchasing Manager by the City Manager prior to City Council approval: AT&T/MCI DELL COMPUTERS DUNN-EDWARDS GAS CO GREENWOOD UNIFORMS GRAYBAR ELECTRIC HOME DEPOT PACIFIC ALARM HYDROSCAPE POMA DISTRIBUTING JONES CHEMICALS RANCHO READY MIX LOU'S TIRE SAM'S CLUB MISSION LINEN SO CAL EDISON OFFICE DEPOT SO CAL GAS Sprint/Nextel SUPERIOR PARTS WAREHOUSE WALTERS WHOLESALE ELECTIC US BANK Staff is requesting Council authorization to increase the aggregate total amount of these BPO's by an additional $1,697,000, and authorize staff to allocate this amount between the 22 vendors as needed. This increase does not mean that staff will immediately issue these BPO's for the full amount, but gives staff the flexibility to issue on an as needed basis during the fiscal year. Any increases beyond the total authorized amount of $2,247,000 will be brought back to Council for approval.