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HomeMy WebLinkAbout22A - CONTRACT RENEWAL COPPER TUBING SPEC 10-045REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: DECEMBER 19, 2011 TITLE: CONTRACT RENEWAL FOR COPPER TUBING (SPEC. NO. 10-045) CITY-MANAGER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ? As Recommended ? As Amended ? Ordinance on 15t Reading ? Ordinance on 2nd Reading ? Implementing Resolution ? Set Public Hearing For CONTINUED TO FILE NUMBER Renew the contract for copper tubing for a one-year period in an amount not to exceed $150,000 with the following vendors: Vendor Ferguson Enterprises S & J Supply Co. Inc. DISCUSSION The Public Works Agency (PWA) connections to deliver 40,438 acre-f( perform maintenance and repairs on various sizes of the industry standard Central Stores warehouse for distri waterworks parts is designed to provi pricing. Location Pomona Santa Fe Springs Water Resources Division maintains 50,000 water service et of water to businesses and residents in Santa Ana. To the City's extensive water distribution system, PWA requires grade K copper tubing. The tubing is purchased through the bution. The contract for copper tubing and miscellaneous de quality products at a significant savings based on quantity On November 15, 2010, the City Council awarded contracts for a one-year period, with provisions for three one-year renewals. Staff 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 new 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 have agreed to renew the contract without an increase in pricing. Staff recommends the first renewal of the contracts. 22A-1 Contract Renewal for Copper Tubing December 19, 2011 Page 2 FISCAL IMPACT Funds are available in the Water Utility Watef Production & Supply account (no. 63001). r-- Rau G dinez II Executive Director Public Works Agency KM APPROVED AS TO FUNDS AND ACCOUNTS.- Francisco Gutierrez Executive Director Finance & Management Services Agency IL 22A-2