Title
AUTHORIZATION TO ENTER INTO AMENDMENT NO. 1 TO THE LINKING AGREEMENT WITH SUMMIT ELECTRIC SUPPLY COMPANY, INC., AND APPROVE THE EXPENDITURE OF FUNDS FOR THE PURCHASE OF ELECTRICAL PARTS
Staff Contact: Craig Johnson, P.E., Director, Water Services
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Purpose and Recommended Action
Recommendation
This is a request for City Council to authorize the City Manager to amend the linking agreement C-10913 with Summit Electric Supply Company, Inc., (Summit) for the purchase of electrical parts; and approve the increase of expenditure of funds in an amount not to exceed $250,000 for this amendment, and authorize the City Manager, at his discretion, to extend the agreement for four additional one-year terms, in an amount not to exceed $1,250,000 for the entire term.
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Background
On June 14, 2016, Council authorized the linking agreement with Summit and expenditure of funds in an amount not to exceed $100,000 through February 5, 2017. This cooperative purchase is available through an agreement between City of Tempe and Summit, contract no. T16-101-03, and can be extended through February 5, 2021.
As most vendors do not supply parts for all brands or types of equipment, the City has contracted with multiple electrical suppliers. After assessing the electrical needs for the future, additional electrical components from Summit are needed and will require an increase in this agreement.
Analysis
The increase in the contract amount to $250,000 will provide for additional funding to rehabilitate, update, and replace capital equipment.
The City of Glendale Materials Management and the City Attorney’s Office have reviewed and approved the utilization of the agreement for the defined services, and concur the cooperative purchase is in the best interest of the city.
Budget and Financial Impacts
Funding is available in the Water Services FY2016-17 operating and capital budgets. Annual budget appropriation thereafter is contingent upon Council approval. The budget will be encumbered only as electrical parts are needed.
|
Cost |
Fund-Department-Account |
|
$250,000 |
2360-17160-523400, Arrowhead Water Reclamation Facility |
|
|
2360-17170-523400, West Area Water Reclamation Facility |
|
|
2400-17280-523400, Central System Maintenance |
|
|
2400-17250-523400, Pyramid Peak Water Treatment Plant |
|
|
2400-17260-523400, Cholla Water Treatment Plant |
|
|
2400-17310-523400, Oasis Surface Water Treatment Plant |
|
|
2400-17320-523400, Oasis Groundwater Water Treatment Plant |
|
|
2400-61048-523400, City Well Rehab |
|
|
2400-61054-523400, Distribution System Improvements |
Capital Expense? Yes
Budgeted? Yes
Requesting Budget or Appropriation Transfer? No
If yes, where will the transfer be taken from?