Explanation
Background: Ordinance 0545-2004 passed by City Council April 19, 2004, authorized the purchase of traffic signposts, traffic signal controllers, and school flashers for the Transportation Division per the terms and conditions of citywide universal term contracts with five vendors for $187,904.00. A purchase order was established with Steven Steel Company for two hundred (200) 14 foot 2.5 pound signposts for $7,800.00.
Steel pricing is volatile due to marketplace shortages. The universal term contract for traffic signposts contained an escalator clause that allowed the vendor to petition the Purchasing Office for mid-contract price increases. Unbeknownst to the Transportation Division, this escalator was exercised and a price increase approved by the Purchasing Office subsequent to passage of Ordinance 0545-2004 but before the division ordered the signposts. Subsequent to delivery of the signposts, Steven Steel invoiced the division $12,406.00, an increase of $4,606.00 from the original purchase order amount. This ordinance authorizes the Finance Director to increase purchase order #FL001202 by $4,606.00.
Fiscal Impact: The Transportation Division budgeted $755,082 in the 2004 Capital Improvements Budget for Sign Upgrading/Street Name Sign projects. Over a half million dollars remains from the original allocation. This ordinance authorizes an additional $4,606.00 for steel price increases for the purchase of signposts. Therefore, funds for this purchase order increase are available within the 2004 Transportation Division Capital Improvements Budget in the Sign Upgrading/Street Name Sign project in the 1995, 1999 Voted Streets and Highways Fund.
Emergency action is requested to clear this outstanding amount due the vendor as soon as possible.
Title
To authorize the Finance Director to modify and increase an existing purchase order with Steven Steel Company for the purchase of steel traffic signposts for the Transportation D...
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