To: Honorable Mayor and Members of City Council
From: Joy Eldredge, Utilities Director
Prepared By: Sara Gallegos, Management Analyst II
TITLE:
Title
Industrial Plumbing Materials for Water System Operation
LABEL
RECOMMENDED ACTION:
Recommendation
1) Authorize the Utilities Director to amend existing contracts with Pace Supply, Corp. and Ferguson Enterprises, Inc., increasing the compensation from $200,000 to an amount not to exceed $400,000 for Fiscal Year 2025, for the purchase of industrial plumbing materials for use in the municipal potable water system;
2) authorize the Utilities Director to execute contracts in an amount not to exceed $500,000 with Pace Supply, Corp. and Ferguson Enterprises, Inc., for Fiscal Year 2026, for the purchase of industrial plumbing materials for use in the municipal potable water system; and
3) determine that the actions authorized by this item are exempt from CEQA.
Body
DISCUSSION:
The Water Division requires industrial plumbing materials for the repair and maintenance of the water distribution and treatment system operations in order to provide potable water throughout the City and unincorporated County areas served by the water system, spending up to $500,000 per fiscal year. Expenditures vary year to year depending on the number of emergency water leaks and scheduled maintenance repair projects.
To ensure sufficient inventory of materials is readily accessible in case of emergency leaks and scheduled repairs, contracts for waterwork supplies from local distributors with readily available inventory such as Pace Supply, and Ferguson Enterprises are established at the beginning of each fiscal year. Depending on the emergency of the items needed, purchases are made not solely based on the lowest price but also based on availability and prompt delivery. Expenditures for industrial plumbing materials have risen and continue to rise, exceeding City Manager contracting authority.
Staff recommends that the City Council authorize the Utilities Director to amend existing contracts with Pace Supply Corp. and Ferguson Enterprises, Inc., to increase compensation from $200,000 to $400,000 for Fiscal Year 2025; and execute new contracts with Pace Supply Corp. and Ferguson Enterprises, Inc., in an amount not to exceed $500,000 each for Fiscal Year 2026, for the purchase of industrial plumbing materials for use in the municipal potable water system. The City Manager has made findings that contracting with these entities for these industrial plumbing materials is exempt from competitive bidding as these materials constitute specialty items pursuant to Napa Municipal Code Section 2.91.050, Exceptions for Specialty Items. A written determination supporting this recommendation is included as Attachment 1 for the City Council’s review in its consideration of this item.
FINANCIAL IMPACTS:
There are sufficient funds in Water Enterprise Fund operating accounts 53060114 (Water Distribution), 53060115 (Water Transmission), and 53060116 (Water Treatment) for the purchase of materials and supplies required to repair and maintain the potable water system pipe network. In addition, various programmed Water Capital Improvement Plan (CIP) Projects in account 53160131 require plumbing materials and supplies which are budgeted with sufficient funds per project.
CEQA:
City staff recommends that the City Council determine that the Recommended Action is exempt from CEQA pursuant to CEQA Guidelines Section 15301(a) (Existing Facilities) which exempts operation, repair, maintenance or minor alteration of existing public or private structures, facilities, mechanical equipment or topographic features involving no expansion of use beyond that previously existing.
DOCUMENTS ATTACHED:
ATCH 1 - Written Determination for Specialty Items
NOTIFICATION:
None