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HomeMy WebLinkAbout10 Welding Service Contractenda Item # CONSENT To: Board of Directors From: Brian Wright ate. DApril 04, 2018 Subject: Consideration of Increasing Total Expenditure Limit for Annual Welding Service Contract 1. WHY THIS MATTER IS BEFORE THE BOARD Board approval is required for expenditures in excess of $15,000. 2. HISTORY 10 In the course of operating and maintaining the electric and water utility operations, the District secures various annual contract agreements associated with the procurement of materials and services. Each year, Staff presents to the Board for approval, an inventory of vendors, the materials and/or services they provide, and the estimated annual cost for those materials and services expected to be utilized throughout the course of the year. Included in the 2018 approved annual procurements was a services agreement with Poulin Steel Fabrication, Inc. for welding services, for a total amount not to exceed $25,000. 3. NEW INFORMATION In the first quarter of 2018, the District's water utility required the welding services of Poulin Steel Fabrication, Inc. for the completion of three unanticipated modifications and repair projects to District facilities and infrastructure. These projects included the modification of pump discharge piping configurations at the Strand Booster Station and Ponderosa Palisades Booster Station, as well as the construction of two steel guardrail systems along South Shore Drive in Donner Lake to protect the District's exposed infrastructure at the two bridge crossings. The total costs of the 3 projects is approaching the 2018 contract limit of $25,000. In the interest of maintaining an active services agreement with Poulin Steel Fabrication for the remainder of 2018, staff is recommending amending the current contract limit with an additional $25,000 in 2018. The amended contract amount would be for a total amount not to exceed $50,0004 4. FISCAL IMPACT Sufficient funds for this services agreement exist in the Board approved FY2018-19 Water Utility Operating Budget and will be funded from the Water General Fund. 5. RECOMMENDATION Authorize the General Manager to amend the services agreement Fabrication, Inc. to increase the 2018 expenditure limit by $25,000, amount not to exceed $50,000. Ora Michael D. Holley General Manager / Water Utility Manager with Poulin Steel for a new contract