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HomeMy WebLinkAbout22E - BRASS WATERREQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: SEPTEMBER 2, 2008 TITLE: CONTRACT RENEWAL FOR BRASS WATER SERVICE FITTINGS (SPEC. NO. 07-057) % ~~ CITY MANAGER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ^ As Recommended ^ As Amended ^ Ordinance on 151 Reading ^ Ordinance on 2"d Reading ^ Implementing Resolution ^ Set Public Hearing For_ CONTINUED TO FILE NUMBER Renew the contracts for brass water service fittings for a one-year period in the annual amounts as follows: Vendor: Location: Amount: Wells Supply Company Santa Ana $50,000 Ferguson Waterworks Santa Ana $30,000 DISCUSSION Last year, the Public Works Agency (PWA) Water Division delivered 43,000 acre feet of water to businesses and residents in Santa Ana. To do so, PWA maintains an extensive distribution system that includes 20 active wells, seven pumping stations and reservoirs, and seven import water connections, as well as miles of water pipe. In order to perform maintenance and repairs on this extensive system, PWA requires an assortment of materials such as bushings, flanges, nuts, and stops. The materials are purchased through the Central Stores warehouse for distribution. The contracts for brass water service fittings is designed to provide quality products at a significant savings based on quantity pricing. In July 2007, three contracts for brass water service fittings were awarded for a one-year period with provision for four, one-year renewals. At this first renewal, all the vendors have requested price increases - two at an increase of ten percent and guaranteeing the price for one year. However, S & J supply requested a 13 percent increase, and will only hold that price for six months. With this increase, S & J is no longer a low bid, with no assurances as to the increase for the second half of the contract period. Ferguson Waterworks and Wells Supply Company have performed satisfactorily during the past contract period. Staff recommends the first renewal of the contract with Ferguson Waterworks and Wells Supply Company. The annual amounts are based upon past usage and staff's projection for the next year. 22E-1 Contract Renewal for Brass Water Service Fittings September 2, 2008 Page 2 FISCAL IMPACT Funds are available in the Water Utility Water Systems Maintenance and Water Quality & Measurement accounts (nos. 64-575-6391 and 64-578-6391). APPROVED AS TO FUNDS AND ACCOUNTS: James ,.G . Rc~s s Executive Director Public W rks Agency JGR /07-057R1.9: }Francisco Gutierrez ,~~ Executive Director Finance & Mgmt. Services Agency 22E-2