AgdaPkt 2006-07-10 - Laserfiche WebLink

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REPORT 6.18 Page 1 To the Honorable Mayor and City Counc:'il From the City Mana.ger July 10, 2006 Subject Purchase of Utility Systems Materials Recommendation By motion, accept the bid and authorize the purchase of utility systems. Background The Water Utility and Wastewater Management Services Divisions of the Public Works Services Department order large quantities of water and sanitary sewer materials for utility system repair and maintenance. (Le. pipe, valves, fittings, meter and valve boxes). Both divisions developed a list of the most commonly used materials, which will be needed during the FY 2006/2007 for the unit priced bid request. The City Clerk advertised the bid request with copies of the bid mailed directly to three local vendors. One bid was received and opened by the City Clerk on Wednesday May 24, 2006 and is considered valid. The response to the bid request is summarized as follows: Roberts & Brune Co. Edward S. Walsh Co. Kenko Utility Supply Co. Redwood City, CA Santa Clara, CA San Jose, CA $263,776.50 No Bid No Bid The only bidder was Roberts & Brune's of Redwood City in the amount of $263,776.50. This amount represents an increase of 32% from their previous July 7, 2004 bid price, primarily due to price increases in metals and pipe. Staff believes that the receipt of only one bid is due to the bidders being required to inventory, deliver and stock most items in a designated storage area within the City's Municipal Services Center, at a minimum of once a week. Other bidders are located in the San Jose area, and with travel distance and time required to perform stocking requirements, this would not make their bid competitive, especially with the escalation of fuel costs. While staff has considered the option to re-bid, it is unlikely that the City would receive additional bid responses or that pricing would be more competitive than the current bid now being considered. Roberts & Brune Company has worked with the City in the past and has been a reputable and responsive vendor. This bid agreement has an option to extend for a 2nd year at the same price.