Extend Purchase Order for Brass Valves and Fittings
June 7, 2022
DATE: June 7, 2021
TO: Honorable Mayor and City Council
FROM: Paul Cranmer, 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 $121,000
Recommendation: Approve
SUMMARY
On June 18, 2019, the City Council approved a 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. On April 28, 2022, S & J Supply Company offered to extend the contract with a 28% price increase due to prolonged inflationary pressure impacting the copper and iron markets. The City may purchase water distribution accessories above or below the estimated quantities on an as-needed basis, at the unit prices quoted in the bid. The City approved this extension and is now approaching the end of this extension period. This is the final of three possible extensions 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 $121,000.
DISCUSSION
The City provides and maintains water services to approximately 57,000 residents through approximately 14,000 water 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
Extend Purchase Order for Brass Valves and Fittings
June 7, 2022
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.
The quantities provided in the bid specifications are based on estimates. Bid documents state that the City may purchase an amount above or below the estimate given according to the needs and requirements of the City at the unit prices quoted in the bid.
To ensure that there are acceptable quantities of water related parts and fittings available in the City’s warehouse, the purchase order amount will be for $121,000.
This is the final of three possible extensions to the purchase order and all other terms and conditions will remain the same. The City will bid the contract again during the upcoming fiscal year to ensure that it remains getting the best possible pricing for these supplies.
ENVIRONMENTAL ANALYSIS
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
Sufficient funds have been budgeted in the Fiscal Year 2022-23 Water Fund Operating Budget for the purchase of water pipeline fittings, brass valves, and other related accessories for the City’s water distribution system.
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 authorize and direct the City Manager to approve the 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 $121,000.