HomeMy WebLinkAbout22A - COPPER TUBING
REQUEST FOR
COUNCIL ACTION
CITY COUNCIL MEETING DATE: CLERK OF COUNCIL USE ONLY:
NOVEMBER 15, 2010
TITLE: APPROVED
? As Recommended
AUTHORIZE CONTRACT WITH WELLS ? As Amended
SUPPLY CO. AND CONTRACT AWARD El Ordinance on 15' Reading
? Ordinance on 2d Reading
FOR COPPER TUBING (SPEC. NO. 10- ? Implementing Resolution
045) ? Set Public Hearing For
CONTINUED TO
F'
FILE NUMBER
CIT MANAGER
RECOMMENDED ACTION
1. Authorize contract to Wells Supply Co. for copper tubing in the amount not to exceed $50,000.
2. Award contracts for copper tubing and miscellaneous waterworks parts for a one-year period,
with provision for three one-year renewals, in an annual aggregate amount not to exceed
$160,000 with the following vendors:
Vendor Location
Copper Tubing
Ferguson Enterprises Pomona
S & J Supply Co. Inc. Santa Fe Springs
Emergency waterworks parts
Wells Supply Co. Santa Ana
DISCUSSION
The Public Works Agency maintains 50,000 water service connections to deliver 40,438 acre-feet of
water to businesses and residents in Santa Ana. To perform maintenance and repairs on the City's
extensive water distribution system, PWA requires varies 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.
The notice inviting bids was advertised on October 13, 2010, and bids were solicited. A summary of
the bid invitations and bids received is as follows:
10 Invitations For Bid mailed
4 Invitations For Bid mailed to Santa Ana vendors
2 Bids received
22A-1
Contract Award for Copper Tubing and Miscellaneous Waterworks Parts
November 15, 2010
Page 2
Bids were solicited, opened on October 27, 2010 and evaluated. The results are as follows for a
price example based on a one month order of copper tubing with a specific order date:
Vendor: Location: Cost:
Ferguson Enterprises Pomona $13,585.51
S & J Supply Co. Inc. Santa Fe Springs $15,000.32
The bids received from Ferguson Enterprises and S & J Supply Co. Inc. are responsive to the
specifications and meet the City's requirements. Staff recommends 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
new contracts offer a daily market price for copper tubing with a fixed markup rate. The aggregate
annual amount of $150,000 is based upon past usage and staff projections for this contract period.
During the bid process, copper tubing purchased by Central Stores staff was handled thru Wells
Supply Co. after soliciting informal quotations. Payment on purchased copper tubing stock is
required to bring the account current during transition in supplier's contract for copper tubing. In
addition, award a $10,000 contract to Wells Supply Co for emergency supplies for the Public Works
Water Resource crews operating in the field.
FISCAL IMPACT
Funds are available in the Water Utility Water Production & Supply account (no. 63001).
APPROVED AS TO FUNDS AND ACCOUNTS:
r i G'oe
A--
Raul Go Inez II Francisco Gutierrez
Executive Director Executive Director
Public Works Agency Finance & Management Services Agency
KM
22A-2