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REQUEST FOR <br />COUNCIL ACTION <br />CITY COUNCIL MEETING DATE: <br />SEPTEMBER 2, 2008 <br />TITLE: <br />CONTRACT RENEWAL FOR <br />BRASS WATER SERVICE FITTINGS <br />(SPEC. NO. 07-057) <br />% ~~ <br />CITY MANAGER <br />RECOMMENDED ACTION <br />CLERK OF COUNCIL USE ONLY: <br />APPROVED <br />^ As Recommended <br />^ As Amended <br />^ Ordinance on 151 Reading <br />^ Ordinance on 2"d Reading <br />^ Implementing Resolution <br />^ Set Public Hearing For_ <br />CONTINUED TO <br />FILE NUMBER <br />Renew the contracts for brass water service fittings for a one-year period <br />in the annual amounts as follows: <br />Vendor: Location: Amount: <br />Wells Supply Company Santa Ana $50,000 <br />Ferguson Waterworks Santa Ana $30,000 <br />DISCUSSION <br />Last year, the Public Works Agency (PWA) Water Division delivered 43,000 <br />acre feet of water to businesses and residents in Santa Ana. To do so, PWA <br />maintains an extensive distribution system that includes 20 active wells, <br />seven pumping stations and reservoirs, and seven import water connections, <br />as well as miles of water pipe. In order to perform maintenance and <br />repairs on this extensive system, PWA requires an assortment of materials <br />such as bushings, flanges, nuts, and stops. The materials are purchased <br />through the Central Stores warehouse for distribution. The contracts for <br />brass water service fittings is designed to provide quality products at a <br />significant savings based on quantity pricing. <br />In July 2007, three contracts for brass water service fittings were awarded <br />for a one-year period with provision for four, one-year renewals. At this <br />first renewal, all the vendors have requested price increases - two at an <br />increase of ten percent and guaranteeing the price for one year. However, <br />S & J supply requested a 13 percent increase, and will only hold that price <br />for six months. With this increase, S & J is no longer a low bid, with no <br />assurances as to the increase for the second half of the contract period. <br />Ferguson Waterworks and Wells Supply Company have performed satisfactorily <br />during the past contract period. Staff recommends the first renewal of the <br />contract with Ferguson Waterworks and Wells Supply Company. The annual <br />amounts are based upon past usage and staff's projection for the next year. <br />22E-1 <br />