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Home My WebLink About _ 4.11(a)--CPA No. 225 - Water Utility Warehouse Items & Fire Hydrants � � �' � � � � � � ' � �' � � ' � ` CITY OF REDDING REPORT TO THE CITY COUNCIL MEETING DATE: March 18,2025 FROM: Michael Webb, Public Works ITEIVI NO. 4.11(a) Director ***APPROVED BY*** � �c a� � �bEi� 'c�r�Cs I7�reetcsr �,'l�r'2t}`?� r5�' �p�i��,C�i �r� �, ��'1 1,{'2{�?. mwebb@cityofredding.org btippin@cityofredding.org SUBJECT: 4.11(a)--Modification of CPA #225 - Water Utility Warehouse Items and Fire H drants Recommendation Authorize and approve the following relative to Contract Purchase Agreement Na. ZZS Water Utility Warehouse Items and Fire Hydrants: (1) Approve increased expense under the contract with Pace Supply Corporation for an annual evaluated price of$400,000; (2) Authorize the Purchasing Officer to extend the bid award annually with Pace Supply Corporation through March 31, 2028, if mutually agreeable, with all terms and conditions remaining the same and price adjustments in direct proportion to a Producer Price Index; and (3) Authorize the City Manager, or designee, to approve an additional $50,000 to the contract award as a contingency per fiscal year. Fiscal Impact The purchase of Water Utility Warehouse Items and Fire Hydrants was included in the City of Redding's (City) Water Utility's (Water Utility) Fiscal Year 2023-25 Biennial Budget. If capital expenses related to these efforts are projected to exceed the approved budget, staff wi11 return with additional recommendations related to budgetary adjustments and financing options. Alte�^native Action The City Council (Council) could choose not to amend Contract Purchase Agreement (CPA)No. 225 with Pace Supply Corporation (Pace Supply) and provide alternative direction to staff. �3ackground/flnalysis In March 2024, the City opened bids for Bid Schedule No. 5454 - Water Utility Warehouse Items and Fire Hydrants. This was an annual bid to purchase inventory items for the Water Utility's warehouse as-needed based on evaluated quantities and inventory. These parts are Report to Redding City Council March 12, ZOZ5 Re: 4.12(a)--CPA No. 225- Water Utility Warehouse Items&Fire Hydrants Page 2 necessary to support the routine maintenance and repair of the Water Utility's infrastructure, including but not limited to water main and service piping, repair couplings, valves, pipe fittings, and fire hydrants. These parts, appurtenances, and materials are also required to support the Water Utility's planned infrastructure replacement projects, contributing to increased system reliability. Staff separated Bid Schedule No. 5454 into four separate bid groups: (1) Bid Crroup 1 — Couplings, (2) Bid Group 2 — Valves, (3) Bid Group 3 — Service Brass, and (4) Bid Group 4 — Fire Hydrants. This format allows for more competitive pricing for different groups of similar equipment. This was the first time the City contracted these purchases and staff estimated that less than $200,000 worth of items would be purchased from the awarded supplier. After opening bids, CPA No. 225 with Pace Supply was awarded on April 3, 2024. Also included in the CPA was a 25 percent discount from Pace Supply on non-contracted items. During the course of the past year, the Water Utility has purchased approximately $350,000 worth of materials from Pace Supply. The staff estimate was low based on limited availability of parts from other vendors. Staff continued to purchase inventory materials from Pace Supply because the parts were readily available or could be acquired sooner than competing vendors. The significant 25 percent discount on non-contracted items was another reason the Water Utility purchased more materials from Pace Supply than estimated. Any contracted agreement exceeding $200,000 per annual term must receive Council approval. Environmental Analysis This activity, purchasing, is not a project as defined by the California Environmental Quality Act, and no further action is required. Council PrioNity/City ManageN Goals This agenda item is a routine operational item. Attachmen�s ^Award Letter- Bid 5454 - CPA 225 # V� � I� B '�vWi" � .. .. ��. f.....v ..... � �.�i ��. . "��'�'.,--''��f � �i L � F � � -`�;C�Y ��'' d=� . ar�'�aaw� �rsran��"j�. �3 [2 'i;#��„t �V�.3. . 1}E��'E A�72'l��;2�� TO: Micha�l Webb; Director of Public Works FRC►M: Ty1er Nash, Buyer SUBJECT: Bid 5454-�'urnish Water Util�ty Warehouse Items and Fire Hydrants Four(4)bid Qpportunity ann�uncements were distributed tc�pertential vendors, in addrtic�n tc� posting the bid to the City of Redd�ng webs�te and advertising in the Record Searchlight.Three (3)bids were submitted. The apparent low bidder that can provide ai1 products reguired was received from Pace Supply Corp, w�th an estimated annual cost of$149,b68.30. The bid submissions have been pravid�d to Kely IVIi1Ier;`Pub�ic Works 5upervisor-Water and C'rabe Johnson; Warehouse Wc�rker-Water for review and evaluation. They have revi�;wed'the 5ubznissions and have recomm�nde�to award to Pace Supply Corp, Please note that the term c�f the initial contract is�rc�m purchase order issuance date through March 3l, 2025; however, if mutually agreeable,with a�1 price ehanges in proporti�n withthe Producer 1'rice Index,terms and conditions rema��ing the sarne,the contract tnay be extended: annually through March 31, 2028: The acquisit�on of gc�ads or services �ess than $20�,(�40,00 do nat require City Cauncil appraval; If you are in agreement with awarding ta Pace Su�piv �or�,please sign below. If yozz have any questi�ns,please call me at 225-4�35: Approved � ° l� � � 04/02/2f�24 Michael,Webb,Dir�ctor of Pub[ic Works I�ate Approved '� Barry Ti in, i' Manager Date Attachments: Bid Tab CITY t�F REDDING PURCHASING DIVISION-TABU�ATION OF BIDS Bid 5454-Preliminary Results Notice Inuiting Bids -Furnish Water Utility Core &Main Pace Suaplv Ferctuson WaterWorks Warehouse Items and Fire Hydrants BID SCHEDU�E NO. DATE OF OPENING March 28,2024 5454 TIME OF OPE�••��••��II �•��••�•I�� NING 3:00 P.M. ITEM DESCRIPTION PRICE PRICE PRICE � Bid Group 1 (Couplings) $48,055.61 $38,050.16 $38,351.53 Romac Romac Romac/ProSelect 2 Bid Group 2 (Valves) $20,178.45 $i8,393.38 $19,829.45 Clow Clow Mueller Co 3 Bid Group 3 (Service Brass) $59,383.92 $59,049.55 $61,907.97 Ford Meter Box AY McDonald RomaclMuellerlFord/Ay McDonald 4 Bid Group 4 (Fire Hydrants) $37,390.67 $34,175.21 $37,478.51 Clow Clow Mueller Co s Total of All Bid Groups (If applicable) $165,008.65 $149,668.30 $157,567.46 Addendums Acknowledged? Yes Yes Yes All Groups Bid? Yes Yes Yes Notated Deviations to Bid? No No Yes