REPORT TO COUNCIL
SUBJECT
Title
Award of Contracts for Piping Supplies for Water and Sewer Services (F15-12)
Report
REPORT IN BRIEF
Approval is requested to award one-year contracts, not to exceed budgeted amounts, to Ferguson Enterprises dba Groeniger & Company (Groeniger) and Corix Water Products (Corix) for piping supplies, and to authorize the City Manager to renew the contracts for up to three additional one-year periods if pricing and service remain acceptable to the City.
ENVIRONMENTAL REVIEW
N/A
BACKGROUND AND DISCUSSION
Piping supplies such as valve parts, fittings, and couplings are used regularly by Environmental Services Department staff for both infrastructure maintenance and upgrades. Items that are used on a regular, high-volume basis are stocked at the Central Stores warehouse, while supplies needed for emergencies, special projects, or other repairs are purchased on an as-needed basis. All purchases are coordinated through Central Stores.
Bid specifications were prepared by Purchasing and Environmental Services staff. Invitation for Bids No. F15-12 was posted on the Onvia DemandStar public procurement network and directly provided to known local suppliers. Sealed bids were publicly opened on December 17, 2014. Two responsive bids were received, from Groeniger and Corix.
As can be seen on the Bid Summary (Attachment 1), neither supplier bid on all of the line items specified. In order to ensure product availability, staff recommends establishing contracts with both suppliers. Required items will be routinely ordered from the low-bid supplier, but if there is an urgent need for a particular item and it is not readily available from the low-bid supplier, it can be obtained from the backup supplier.
FISCAL IMPACT
For the last several years, these types of supply contracts have been established with not-to-exceed budgeted amounts because it is difficult to predict exactly how many items will be needed throughout the year. This difficulty is exacerbated by the City's aging infrastructure and the lingering effects of deferred maintenance over the years.
Expenses have nearly doubled over the last several years, from an average of approximately $200,000 between 2008-2011, to $386,000 in 2014. These expenses have been within budgeted amounts in Operating Programs 360 (Water Resources) and 367 (Wastewater Collection Systems), and various capital projects. As part of the annual budget process, staff will continue to analyze piping supplies purchases and recommend appropriate levels of expenditure for the contract term.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City's official-notice bulletin board outside City Hall, at the Sunnyvale Senior Center, Community Center and Department of Public Safety; and by making the agenda and report available at the Sunnyvale Public Library, the Office of the City Clerk and on the City's website.
RECOMMENDATION
Recommendation
1) Award one-year contracts to Ferguson Enterprises dba Groeniger & Company and Corix Water Products in substantially the same form as the draft blanket purchase orders attached to the report, not to exceed budgeted amounts, and 2) Authorize the City Manager to renew the contracts for up to three additional one-year periods provided that pricing and service remain acceptable to the City.
Staff
Prepared by: Pete Gonda, Purchasing Officer
Reviewed by: Grace K. Leung, Director, Finance
Reviewed by: John Stufflebean, Director, Environmental Services
Reviewed by: Robert A. Walker, Assistant City Manager
Approved by: Deanna J. Santana, City Manager
ATTACHMENTS
1. Bid Summary
2. Draft Blanket Purchase Order to Corix Water Products
3. Draft Blanket Purchase Order to Ferguson Enterprises dba Groeniger & Company