REPORT TO COUNCIL
SUBJECT
Title
Action on the Award of Purchase Orders with Underground Republic Water Works, Inc., Core & Main LP, and Ferguson Enterprises LLC for Water Main Replacement Phase 1F Construction Materials for a Total Maximum Amount Not-To-Exceed $873,085.65
Report
BACKGROUND
The City of Santa Clara Water & Sewer Utilities Department (Department) operates and maintains a potable water distribution system consisting of approximately 335 miles of distribution pipelines, 21 active groundwater wells, and seven storage tanks with a combined capacity of 28.8 million gallons. To maintain reliable service levels and meet customer expectations, the Department implements an ongoing infrastructure replacement program to replace dilapidated water mains nearing the end of their useful life or with a history of leaks.
The Department is currently preparing for the upcoming Water Main Replacement Phase 1F project (“Project”), which aims to replace aging water mains throughout the neighborhood bound by La Herran Drive, Pruneridge Avenue, Lawrence Expressway, and One Agilent Way, and is in the process of procuring materials for this phase. The Project consists of replacing 8,140 lineal feet of 6-inch and 8-inch cast iron water mains with new 8-inch ductile iron mains at La Herran Drive, Hillsdale Avenue, La Salle Avenue, De Soto Avenue, Randolph Avenue, Magellan Avenue, Daniel Way, Montclair Drive, Fulton Court, Cody Court, Sullivan Drive, and Hancock Drive.
DISCUSSION
To support the procurement of various materials for the Project, including pipeline, valves, fittings, couplings, hydrants, and other auxiliary components, staff conducted a solicitation process in accordance with Section 2.105.140(b) of the City of Santa Clara City Code, with award based on the lowest quoted price for each individual bid item. Staff received bids from Underground Republic Water Works, Inc., Core & Main LP, and Ferguson Enterprises LLC, and recommends awarding purchase orders to each vendor as set forth in Table 1.
Table 1 summarizes the total value of the individual bid items awarded to each vendor. The maximum compensation across all three vendors is $873,085.65, which includes estimated sales taxes and a 15% contingency for potential tariff-related cost increases and additional quantities that may be required during the Project.
Table 1 - Cost Summary
|
Vendor |
Amount |
|
Underground Republic Water Works, Inc. |
$399,174.24 |
|
Core & Main LP |
$284,643.37 |
|
Ferguson Enterprises LLC |
$7,940.85 |
|
Subtotal |
$691,758.46 |
|
Estimated Tax 9.75% |
$67,446.45 |
|
Total (with Tax) |
$759,204.91 |
|
15% Contingency |
$113,880.74 |
|
Maximum Compensation |
$873,085.65 |
ENVIRONMENTAL REVIEW
The actions being considered are exempt from the California Environmental Quality Act (“CEQA”). The purchase of materials is not considered a “project” under CEQA, as there is no physical change to the environment for this action.
FISCAL IMPACT
The total amount to purchase construction materials for Water Main Replacement Phase 1F, as detailed in this report, including sales tax and a 15% contingency, is $873,085.65. These materials are part of the ongoing efforts to rehabilitate or replace water utility mains in the five-year Water and Recycled Water Utilities capital improvement program. Funding for these materials is budgeted in the Distribution System Replacement/Restoration project in the Water Utility Capital Fund, approved as part of the FY 2026/27 and FY 2027/28 Adopted Capital Improvement Program Budget.
COORDINATION
This report has been coordinated with the Finance Department and the City Attorney’s Office.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City’s official notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, by email clerk@santaclaraca.gov or at the public information desk at any City of Santa Clara public library.
RECOMMENDATION
Recommendation
Authorize the City Manager or designee to award purchase orders to Underground Republic Water Works, Inc., Core & Main LP, and Ferguson Enterprises LLC for Water Main Replacement Phase 1F Construction Materials in the amounts presented in Table 1 of this report, for a total maximum amount not-to-exceed $873,085.65, inclusive of estimated sales tax and a 15% contingency, subject to the appropriation of funds and approval as to form by the City Attorney.
Staff
Reviewed by: John Ramirez, Director of Water & Sewer Utilities
Approved by: Jovan Grogan, City Manager