AgdaPkt 2008-08-11 Clsd and Reg - Laserfiche WebLink

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mmpomT "c- " 6.18 Page 1 To the Honorable Mayor and City Council ffqm the Ci. ' M~"~er August 11, 2008 SUBJECT Purchase of Utility Systems Materials RECOMMENDATION Approve by motion, the acceptance of the utility system materials bid, and authorize the City Manager to sign an Agreement for the purchase of utility system materials. 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 (i.e. pipe, valves, fittings, meter and valve boxes). Both divisions developed a list of the most commonly used materials, which will be needed during FY 2008-09 for operation and maintenance activities. The City Clerk advertised a utility system materials bid request and invitations to bid were mailed directly to three local vendors. One bid was received and opened by the City Clerk on Wednesday July 16, 2008 and is considered valid. The response to the bid request is summarized as follows: Bid Amount $314,854.76 No Bid No Bid Recommended Bidder: Roberts and Brune Company Substantiation: Roberts and Brune Company is the sole responsible bidder. The only bidder was Roberts & Brune Co. of Redwood City in the amount of $314,854.76. This amount represents an increase of 10% from their previous May 23, 2006 bid price (which was approved by City Council on July 10, 2006), primarily due to price increases in metals and pipe. Staff believes that the receipt of only one bid is due to the bidder's requirement 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.