REPORT TO THE CITY COUNCIL FROM: PAUL AMICO, PE, Director Department of Public Utilities BY: ANTHONY WHITE, MBA, Assistant Director Department of Public Utilities - Water Division CHAD COLBY, Water/Wastewater Manager - Certified Department of Public Utilities - Water Division SUBJECT ..Title Approve a Requirements Contract with Ferguson Enterprises, LLC. doing business as Ferguson Waterworks of Fresno, California for the purchase of tapping sleeves and tapping valves for one year with four optional one-year extensions, in a total amount not to exceed $3,474,638.25 over five years plus annual Producer Price Index increases (Bid File 12600030) (Citywide). ..Body RECOMMENDATION Staff recommends that City Council approve a Requirements Contract with Ferguson Enterprises, LLC. doing business as Ferguson Waterworks (Ferguson) for one year with four optional one-year extensions, in a total amount not to exceed $3,474,638.25 over five years plus annual Producer Price Index (PPI) increases, and authorize the Purchasing Manager or designee to execute the contract and all related documents for the purchase of tapping sleeves and tapping valves on behalf of the City of Fresno (City). EXECUTIVE SUMMARY The Department of Public Utilities (DPU) requires a reliable supply of tapping sleeves and tapping valves for water system connections, maintenance, and repairs. Ferguson submitted the lowest responsive and responsible bid totaling $694,927.65 annually, including sales tax. Their proposal met all required specifications and included the required bonding, licensing, and manufacturer technical information. DPU recommends awarding the contract to Ferguson to maintain the supply of these essential water system maintenance and operations components. BACKGROUND Tapping sleeves and tapping valves are essential components used to connect new water lines to existing mains without interrupting service. These materials are routinely used by the DPU Water Division for new customer connections, system maintenance, emergency repairs, and capital improvement projects. A Notice Inviting Bids was posted on the City's PlanetBids website. On September 30, 2025, the City conducted a public bid opening for Bid File No. 12600030. Ferguson submitted the lowest responsive and responsible bid. The annual bid total of $694,927.65 includes pricing for all materials and applicable sales tax. Quantities listed in the bid are estimates for the initial term and may vary based on actual City needs. The City will only pay for items ordered and received. With four optional one-year extensions, the total potential contract amount is $3,474,638.25 over five years, plus annual PPI adjustments. The City Attorney has reviewed and approved the contract as to form, and the Purchasing Division has verified compliance with all bidding requirements. No ISD review is required, as this procurement does not involve technology. ENVIRONMENTAL FINDINGS By the definition of the California Environmental Quality Act (CEQA) Guidelines Section 15378, the approval of this requirements contract is not a "project" for the purposes of CEQA. LOCAL PREFERENCE Local preference was considered during the evaluation of bids. Ferguson is a local business as defined in the Fresno Municipal Code. FISCAL IMPACT There is no impact to the General Fund. Funding for the purchase of tapping sleeves and tapping valves is included in the Fiscal Year 2026 Water Enterprise Fund operating budget. No additional appropriation is required. Attachments: Bid Evaluation Sample Product Requirements Contract