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HomeMy WebLinkAboutItem 1f: Contract Extension to HD Supply Waterworks for Accessories for City's Water System G~4 o lFO R,44 If lit 4 InvveMrvlvd u,ni,1903 `y Of STAFF REPORT Public Works Services Department DATE: October 18, 2011 FROM: Tom Tait, Public Works Services Director Prepared by: Craig Clark, Utilities Superintendent SUBJECT: AUTHORIZE THE CITY MANAGER TO EXECUTE A ONE (1) YEAR PURCHASE ORDER CONTRACT EXTENSION TO HD SUPPLY WATERWORKS FOR THE PURCHASE OF MAINLINE FITTINGS, BRASS VALVES AND OTHER RELATED ACCESSORIES FOR THE CITY'S WATER DISTRIBUTION SYSTEM IN THE AMOUNT OF $113,252 Recommendation: Approve SUMMARY On October 5, 2010, the City Council approved a one year purchase order contract to HD Supply Waterworks for the purchase of mainline fittings, brass valves and related accessories to supply the Water Utilities Section with needed repair parts. HD Supply Waterworks has reached the end of their contract and has submitted a written offer to extend the existing contract for an additional one (1) year with no change in prices. All terms and conditions of the Agreement are to remain in effect. Based on the excellent service provided by HD Supply Waterworks from last year, staff recommends that the City Council award a one (1) year purchase order contract extension to HD Supply Waterworks for the purchase of mainline fittings, brass valves and related accessories for the repair and maintenance of the City's water distribution system in the amount of $113,252. DISCUSSION The City's warehouse is responsible for the purchase and allocation of water distribution system mainline fittings, brass valves, and other related accessories used on a daily basis by City maintenance crews and contractors responsible for the installation of these materials. It is critical that the warehouse maintain the proper on-hand inventory levels to prevent an interruption to these vital services. Most items used in conjunction with water distribution system repairs are considered a revolving inventory item, and must be replaced to continue the smooth day-to-day operations of the Water Utilities Section. Page 1 of 2 Mayor and City Council October 18, 2011 During previous years, staff awarded the water distribution system supplies contract for a three-month period with the option to renew on a quarterly basis, not to exceed one (1) year. The main reason for this was because at that time, vendors could not guarantee their prices for one year due to the volatility of the precious metals market. However, metal prices have recently stabilized. As a result, staff was assured by HD Supply Waterworks that they can hold their prices for a full year. On October 5, 2010, the City Council approved a one (1) year purchase order contract to HD Supply Waterworks for the purchase of mainline fittings, brass valves and other related accessories for maintenance and repair of the City's water distribution system. HD Supply Waterworks has reached the end of their contract and has submitted a written offer to extend the existing contract for an additional one (1) year with no change in prices. All terms and conditions of the Agreement are to remain in effect. Based on the excellent service provided by HD Supply Waterworks from last year, staff recommends that the City Council award a one (1) year purchase order contract extension to HD Supply Waterworks for the purchase of mainline fittings, brass valves and other related accessories for the City's water distribution system in the amount of $113,252. FISCAL IMPACT Sufficient funding is available in the 2011-12 Water Services Operating Budget to provide brass material for the City's water system. RECOMMENDATION 1. Award a one (1) year purchase order contract extension to HD Supply Waterworks for the purchase of mainline fittings, brass valves and other related accessories for the City's water distribution system in the amount of$113,252. 2. Authorize the City Manager and City Clerk to execute a contract in a form approved by the City Attorney. Approved by: +r4 Q Donald Penman, City Manager TT:CC Page 2 of 2