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HomeMy WebLinkAboutItem 11m - Purchase Order Extension for Brass Valves and FittingsExtend Purchase Order for Brass Valves and Fittings June 1, 2021 Page 1 of 2 DATE: June 1, 2021 TO: Honorable Mayor and City Council FROM: Tom Tait, Public Works Services Director By: John Corona, Utilities Superintendent SUBJECT: EXTENSION TO THE PURCHASE ORDER WITH S & J SUPPLY COMPANY INC. FOR THE PURCHASE OF WATER PIPELINE FITTINGS, BRASS VALVES, AND OTHER RELATED ACCESSORIES FOR THE CITY’S WATER DISTRIBUTION SYSTEM IN THE AMOUNT OF $107,000 Recommendation: Approve SUMMARY On June 16, 2020, the City Council approved a purchase order contract extension with S & J Supply Company in the amount of $107,000, for the purchase of water pipeline fittings, brass valves, and other related accessories for the City’s water distribution system. S & J Supply Company is reaching the end of their first purchase order extension and has submitted a written offer to extend for an additional year with no increase in pricing. This will be the second extension to the purchase order and all other terms and conditions will remain the same. Based on the excellent services provided by S & J Supply Company, it is recommended that the City Council authorize and direct the City Manager to approve a one-year extension to the purchase order with S & J Supply Company for the purchase of water pipeline fittings, brass valves, and other related accessories for the City’s Water Distribution System in the amount of $107,000. DISCUSSION The City provides and maintains water services to nearly 56,000 residents through approximately 14,000 meter service connections. The City’s warehouse is responsible for the purchase and allocation of water pipeline fittings, brass valves, and other related accessories used by City maintenance crews, to repair and maintain the City’s water distribution system. It is critical that the warehouse maintains proper inventory levels to prevent an interruption to the City’s water system. Extend Purchase Order for Brass Valves and Fittings June 1, 2021 Page 2 of 2 On June 16, 2020, the City Council approved a purchase order extension with S & J Supply Company in the amount of $107,000, for the purchase of water pipeline fittings, brass valves, and other related accessories for the City’s water distribution system. S & J Supply Company is reaching the end of their first purchase order extension and has submitted a written offer to extend the existing purchase order for an additional year with no increase in pricing. This is the second of three possible extensions to the purchase order and all other terms and conditions remain the same. The purchase order contract language allows for annual contract extensions, subject to City Council approval. S & J Supply Company has provided excellent service during the term of the contract. ENVIRONMENTAL IMPACT The proposed action does not constitute a project under the California Environmental Quality Act (“CEQA”), and it can be seen with certainty that it will have no impact on the environment. Thus, this matter is exempt under CEQA. FISCAL IMPACT Funds in the amount of $107,000 have been budgeted in the Fiscal Year 2021-22 Water Fund Operating Budget for the purchase of water pipeline fittings, brass valves, and other related accessories for the City’s water distribution system. The City is only charged for the items actually purchased on an as-needed basis. RECOMMENDATION It is recommended that the City Council determine that this action does not constitute a project and is, therefore exempt under the California Environmental Quality Act (“CEQA”); and approve an extension to the Purchase Order with S & J Supply Company Inc. for the purchase of water pipeline fittings, brass valves, and other related accessories for the City’s Water Distribution System in the amount of $107,000.