HomeMy WebLinkAboutItem 1f: Contract Extension to HD Supply Waterworks for Accessories for City's Water System G~4 o lFO R,44
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`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.
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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
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