| | | | | | | | Agenda Item - 4.c.
City of Garden Grove
INTER-DEPARTMENT MEMORANDUM
| To: | Scott C. Stiles
| From: | William E. Murray
| | Dept.: | City Manager
| Dept.: | Public Works
| | Subject: | Authorize an increase to the purchase order with John B. Ewles, Inc., for disposing asphalt and concrete materials. (Increased Cost: $25,000) (Action Item) | Date: | 8/9/2022 |
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| | | | | | | | OBJECTIVE
For City Council to authorize the Finance Director to increase the annual purchase order amount with John B. Ewles, Inc. from $50,000 to $75,000. |
| | | | | | | | BACKGROUND
The Streets Division in the Public Works Department utilizes a purchase order with John B. Ewles, Inc. for utilization of a dump site for broken asphalt and concrete whenever they perform asphalt planing (grinding) during street improvement projects. |
| | | | | | | | DISCUSSION
The existing purchase order with John B. Ewles, Inc. was originally set at $50,000. However, due to inflationary price increases, Public Works is requesting an increase of $25,000 to the $50,000 purchase order. The $25,000 increase will be applied to Fiscal Year 2021-22 in order to absorb increases in fiscal year-end invoices. The cost increase will also need to be applied to annual purchase order renewals. |
| | | | | | | | FINANCIAL IMPACT
There is no impact to the General Fund. This increase will be absorbed by the Public Works Streets capital budget which includes gas tax funding. |
| | | | | | | | RECOMMENDATION
It is recommended that the City Council:
- Authorize the Finance Director to increase the purchase order with John B. Ewles, Inc., from $50,000 to $75,000 for Fiscal Year 2021-22, and for subsequent purchase orders.
By: Ana V. Neal, Principal Administrative Analyst
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