| | | | | | | | Agenda Item - 3.c.
City of Garden Grove
INTER-DEPARTMENT MEMORANDUM
| To: | City Manager
| From: | William E. Murray
| | Dept.: |
| Dept.: | Public Works
| | Subject: | Authorize issuance of a purchase order with C. Wells Pipeline Materials, Inc., for water appurtenances. (Cost: $200,000) (Action Item) | Date: | 2/28/2023 |
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| | | | | | | | OBJECTIVE
To receive City Council approval to authorize a one-year purchase order with C. Wells Pipeline Materials for $200,000 with a possible one-year renewal for the purchase of water appurtenances. |
| | | | | | | | BACKGROUND
The Water Services Division is responsible for operating and maintaining the City's aging water infrastructure. The division performs repairs and capital replacement to the water system on a routine basis. This involves the frequent purchase of water appurtenances such as copper, gate valves, corps, angle stops and saddles. Recently, a national backorder of supplies has increased amount various vendors who supply the materials mentioned above. This is a result of the local market conditions, supply chain issues, raw material shortages, labor shortages and transportation challenges. |
| | | | | | | | DISCUSSION
Vendors such as Yo-Fire, Western Waterworks, Ferguson Enterprises, Core & Main (formerly HD Supply Waterworks) and Inland Water Works Supply Co. have been on a backorder system of at least 25-40 weeks due to the current economic conditions. The long lead time will impact the division's ability to keep up with projects. Staff recommended creating a pool of "back-up" equipment to support the inventory needed to provide as-needed maintenance and capital replacement. C. Wells Supply is the only known vendor to have adequate supply of these water appurtenances and shorter lead times on delivering these materials. Therefore, Staff is seeking a one-year purchase order with a possible one-year renewal to allocate $200,000 to help maintain the viability of existing inventory stock. This will ensure no interruptions in the day-to-day water supply operations. The supply-chain issue and economic conditions will be re-evaluated at the end of year one to determine if the additional one-year renewal is appropriate and complies with the City’s Purchasing policy. |
| | | | | | | | FINANCIAL IMPACT
There is no impact to the General Fund. The cost of water appurtenances are included in the City's adopted FY 2022-23 Water Enterprise Budget. |
| | | | | | | | RECOMMENDATION
It is recommended that the City Council:
- Authorize the Finance Director to issue a one-year purchase order with C. Wells Pipeline Materials, in the amount of $200,000, for water appurtenances; and
- Authorize the Finance Director to issue a renewal of the purchase order after the one year term if necessary.
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