22A - SPEC - COPPER TUBING - Laserfiche WebLink

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REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: DECEMBER 17, 2012 TITLE: CONTRACTS RENEWAL FOR COPPER TUBING (SPEC. NO. 10-045) al A C MANAGER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ? As Recommended ? As Amended ? Ordinance on 1ST Reading ? Ordinance on 2"d Reading ? Implementing Resolution ? Set Public Hearing For_ CONTINUED TO FILE NUMBER Renew the contracts for copper tubing for a one-year period, in an annual aggregate amount not to exceed $150,000 with the following vendors: Vendor Location Ferguson Enterprises Pomona S & J Supply Co. Inc. Santa Fe Springs DISCUSSION The Water Resources Division of the Public Works Agency (PWA) maintains 50,000 water service connections to deliver 40,438 acre-feet of water annually to businesses and residents in Santa Ana. To perform maintenance and repairs on the City's extensive water distribution system, PWA requires various sizes of the industry standard "grade K" copper tubing. The tubing is purchased through the Central Stores warehouse for distribution. The contract for copper tubing and miscellaneous waterworks parts is designed to provide quality products at a significant savings based on quantity pricing. On November 15, 2010, the City Council awarded contracts to Ferguson Enterprises and S & J Enterprises for a one-year period, with provisions for three one-year renewals. Staff had recommended awarding contracts to two local vendors to allow for competitive quotes from both vendors on any given day. Copper tubing has a very volatile price pattern and fluctuates based on current market value, supply, and demand. The contracts offer a daily market price for copper tubing with a fixed markup rate. The vendors have performed satisfactorily during the past contract period and staff recommends the second renewal of the contracts. 22A-1