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05-07-2019 - Item 16 - Consideration of Increase of Purchase Order to ACE Pelizon Plumbing For Fiscal Yeat 2018-19AGENDA ITEM NO. 16 AGENDA STAFF REPORT City of West Covina | Office of the City Manager DATE:May 7, 2019 TO:Mayor and City Council FROM:David Carmany Interim City Manager SUBJECT:CONSIDERATION OF INCREASE OF PURCHASE ORDER TO ACE PELIZON PLUMBING FOR FISCAL YEAR 2018-19 RECOMMENDATION: It is recommended that the City Council approve an increase in the purchase order for Fiscal Year (FY) 2018-19 for Ace Pelizon Plumbing in an amount not to exceed of $40,000. DISCUSSION: Ace Pelizon Plumbing has been providing the City with ‘on-call’ emergency plumbing services since May 2010. Its proximity to West Covina and thorough knowledge of City facilities has enabled the company to provide prompt response to the city's plumbing emergencies and repairs, when other plumbing provides have declined work or not been available for emergency call-out work. The firm's services have ranged from domestic plumbing needs to sewer infrastructure repairs. The current fiscal year to-date expenditures with this vendor total $27,702, fast approaching the dollar threshold of $30,001 that exceed staff purchasing authority. Additional invoices totaling $2,394 are now due for recent repairs made at the Senior Center, Fire Station 2 and for the jetting of three high maintenance sewer line areas inaccessible by the City’s vactor truck. Additional repairs may come up in the remaining two months of this fiscal year. Due to the unique scope of work and complexities of an aging plumbing system, staff is requesting that the City Council approve an increase to the annual "on-call" maintenance purchase order in the amount of $10,000. The adjusted purchase order of $40,000 is allowed by the Municipal Code under Sales, Division 2. – Purchasing System, Sec. 2-330 (b) Bidding that states: “The City Council, by majority vote of its entire membership, may dispense with such bidding and other procedures required by this division in any individual instance upon finding that it would be impracticable, useless or uneconomical in such instance to follow such procedures and that the public welfare would be promoted by dispensing with the same.” Public Services staff intends to issue an RFP for plumbing services to provide a list of qualified plumbing companies for services for the Fiscal Year 2019-20 budget year so that services can be rotated through various plumbing service providers. OPTIONS: The City Council has the following options: 1.Approve staff’s recommendation; or 2.Provide alternative direction. Prepared by: Mike Cresap Public Services Superintendent Fiscal Impact FISCAL IMPACT: No fiscal impact. Plumbing services are funded from the three accounts listed below. These accounts pay for various maintenance and repairs of City building, parks and sewers. There are sufficient funds in these accounts to increase this purchase order. •110.41.4142.6270 General Fund, Parks Maintenance •110.41.4144.6310 General Fund, City Buildings •189.41.4160.6120 Sewer Fund, Sewer Maintenance