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HomeMy WebLinkAbout22B - PO FOR WATER WORKS FITTINGSREQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: SEPTEMBER 15, 2020 TITLE: APPROVE AN INCREASE OF THE PURCHASE ORDER AMOUNT WITH CORE & MAIN LP, FERGUSON ENTERPRISES, LLC AND S&J SUPPLY COMPANY, INC. IN THE AMOUNT OF $275,000 FOR A TOTAL AGGREGATE AMOUNT NOT TO EXCEED $660,000 FOR WATERWORKS FITTINGS AND SUPPLIES AND EXTEND THE TERM THROUGH APRIL 30, 2021 (SPECIFICATION NO. 15-034) (NON -GENERAL FUND) /s/ Kristine Rid CITY MANAGER CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 1� Reading ❑ Ordinance on 2nd Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO 911111111100 :]qC7 RECOMMENDED ACTION Authorize the City Manager to increase the blanket order contracts with Core & Main LP, Ferguson Enterprises, LLC and S&J Supply Company, Inc. for waterworks fittings and supplies by $275,000 for a total aggregate amount not to exceed $660,000 and extend the term for six months, from October 31, 2020 to April 30, 2021, subject to non -substantive changes approved by the City Manager and City Attorney. DISCUSSION The Public Works Agency Water Resources Division manages the delivery of water to businesses and residents in the City of Santa Ana, including fire hydrants. To do so, the Agency maintains an extensive distribution system that includes 20 active wells, seven pumping stations and reservoirs, seven import water connections, and 450 miles of water mains. To perform maintenance and repair of fire hydrants and the extensive water delivery system, the Water Resources Division staff requires an assortment of materials such as valves, adapters, couplings, clamps, as well as brass brushings, flanges, nuts, and stops. The contract for waterworks fittings and supplies is designed to provide quality products at a significant savings based on quantity pricing. On June 2, 2015, the City Council awarded a purchase order contract for waterworks fittings and supplies to Core & Main LP, Ferguson Enterprises, LLC and S&J Supply Company, Inc. for a one-year period expiring June 16, 2016, with four one-year renewal options in an annual aggregate amount not to exceed $350,000. The four renewal options were exercised and the 22B-1 Contract Amendment for Waterworks Fittings and Supplies September 15, 2020 Page 2 purchase order contract was extended via change order through October 30, 2020. Additionally, the purchase order amount was increased by $35,000. Staff recommends extending the purchase order contract for an additional six months through April 30, 2021 and adding funding in the amount of $275,000, for a total amount not to exceed $660,000. The additional funding amount will allow staff to have inventory available to maintain the water delivery system and make repairs without experiencing supply chain delays that could result in water loss and system damages. The additional time will allow staff to release a request for bids in order to develop new contracts. FISCAL IMPACT Funding for the requested increase to the existing contracts with Core & Main LP, Ferguson Enterprises, LLC and S&J Supply Company, Inc. in the amount of $275,000 is budgeted and available for expenditure in the following accounts: Fiscal Year Accounting Unit- Fund Description Accounting Unit, Amount Account # Account Description Water System 06017641-63001 Water Maintenance, $137,500 Miscellaneous Operating FY 2020-21 Expenses October 2020- April 2021 Water Quality, 06017644-63001 Water Miscellaneous Operating $137,500 Expenses Total: $275,000 Fiscal Impact Verified By: Kathryn Downs, CPA, Executive Director— Finance and Management Services Agency Submitted By: Nabil Saba, P.E., Executive Director — Public Works Agency 22B-2