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City Council Report Date: August 17, 2026 To: City Council Through: Michael Kennington, Deputy City Manager/Chief Financial Officer From: Edward Quedens, Business Services Director Kristy Garcia, Procurement Administrator Subject: Dollar Limit Increase to the Cooperative Use Term Contract for Industrial Plumbing Supplies for the Water Resources and Facilities Management Departments (Citywide) Recommendation Council is requested to approve the award as recommended. The Water Resources and Facilities Management Departments and Procurement Services recommend increasing the dollar limit with Ferguson Enterprises, Inc., by $300,000, from $100,000 to an amount not to exceed $400,000 annually, with an annual increase allowance of up to 5% or the adjusted Consumer Price Index. Background / Discussion This contract provides critical water system components, such as valves, pipe fittings, fire hydrants, and repair parts, needed to support both routine maintenance and emergency repairs within the City’s water distribution system and City-owned hydrants. These materials are used daily by Water Resources crews to maintain reliable water service, perform scheduled maintenance, repair leaks, replace aging infrastructure, and ensure hydrants remain fully operational for fire protection. Immediate access to these components is essential for preventing service interruptions, reducing water loss, and safeguarding public health and safety. A dollar limit increase is needed due to the Facilities Management Department being added to the contract. Facilities Management maintains over 400 city buildings and most require plumbing services. Materials are needed to support both routine maintenance and emergency repair activities. Maintaining a ready inventory will enable Facilities Management to respond quickly to system failures, manage costs effectively, and avoid delays associated with sourcing materials on an as-needed basis. The State of Arizona cooperative contract has been competitively bid and meets the City’s procurement requirements. Utilizing the State of Arizona contract allows the City to receive competitive rates based on a formally solicited agreement. The City believes the pricing is fair and reasonable and soliciting for these products would not result in the City receiving more favorable pricing or terms. 2 Purchase Information Action: Amendment Procurement Type: Cooperative Contract Use Contract Number: 2026174 Contracting Agency/Contract Number: State of Arizona/CTR074549 Local Consideration: Policy did not apply to this procurement method Initial Contract Term: 8/17/2026– 12/31/2026 Possible Renewals: Up to a maximum of three years, subject to Administrative review and approval Funding Source: Water & Wastewater Operations and Maintenance Fund, and Facilities Management Operating Budget through the General Fund Dollar Limit History Original Award Amount (6/4/2026): $100,000.00 This increase request: $300,000.00 New Annual Contract Value: $400,000.00