SUBJECT
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Consideration to renew annual supply/service contract FY23-048 with Gutierrez Machine Shop, Laredo, Texas in an annual amount of $1,030,000.00 for professional welding services for the Utilities Department. The services requested include site repairs to various water and wastewater treatment plants, lift stations, and other municipal utility facilities. The term of this contract shall be for a period of one year beginning as of the date of its execution and is contingent upon the availability of appropriated funds. There was no price increase during the last extension period This contract can be renewed two additional one-year extension periods, upon mutual agreement of the parties. Funding is available in the Waterworks System and Sewer System Funds.
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PREVIOUS COUNCIL ACTION
Approved a two-year contract on 6/5/23.
BACKGROUND
This contract establishes pricing for professional welding services. The welding repair and fabrication services shall include installation, alteration, repair, relocation, replacement, and assembly of, addition to, use or maintenance of any metal products. The services requested include site repairs to the various water and wastewater treatment plants, lift stations, and other municipal utility facilities. There was no price increase during the last extension period. The term of this contract shall be for a period of one (1) year beginning as of the date of its execution. The contract may be extended for two, additional one (1) year periods. This contract shall be the responsibility of and administered by the City of Laredo Utilities Department.
Current Contract Pricing:
Description Unit Price
Regular Pay Rate (8AM to 5PM) $ 75.00 /Hour
Overtime Pay Rate (5:01PM to 7:59AM) $ 112.50 /Hour
Holiday/Weekend Pay Rate $ 112.50 /Hour
Service Call Pay Rate after 5:01 PM $ 112.50 /Hour
Machine Shop Service (8:00 AM thru 5:00 PM) $ 75.00 /Hour
Machine Shop Service (After 5:00 PM-Holidays) $ 112.50 /Hour
Work Site Service (8:00 AM thru 5:00 PM) $ 75.00 /Hour
Work Site Service (After 5:00 PM-Holidays) $ 112.50 /Hour
A complete bid tabulation is attached.
COMMITTEE RECOMMENDATION
None.
STAFF RECOMMENDATION
recommendation
It is recommended that this contract be renewed.
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Fiscal Impact
FFiscal Year: 2025
Budgeted Y/N?: Yes
Source of Funds: Waterworks System and Sewer System Funds.
Account #: 55942105332030
Change Order: Exceeds 25% Y/N: No.
Fiscal Year: 2025
Budgeted Y/N?: Yes
Source of Funds: Waterworks System and Sewer System Funds.
Account #: 55942205332030
Change Order: Exceeds 25% Y/N: No.
Fiscal Year: 2025
Budgeted Y/N?: Yes
Source of Funds: Waterworks System and Sewer System Funds.
Account #: 55741305332030
Change Order: Exceeds 25% Y/N: No.
Fiscal Year: 2025
Budgeted Y/N?: Yes
Source of Funds: Waterworks System and Sewer System Funds.
Account #: 55741155332030
Change Order: Exceeds 25% Y/N: No.
Fiscal Year: 2025
Budgeted Y/N?: Yes
Source of Funds: Waterworks System and Sewer System Funds.
Account #: 55741205332030
Change Order: Exceeds 25% Y/N: No.
Fiscal Year: 2025
Budgeted Y/N?: Yes
Source of Funds: Waterworks System and Sewer System Funds.
Account #: 55942105332030
Change Order: Exceeds 25% Y/N: No
FINANCIAL IMPACT:
The purpose of this contract is to establish prices for the commodities or services needed, should the City need to purchase these commodities or services. The City's obligation for performance of an annual supply contract beyond the current fiscal year is contingent upon the availability of appropriated funds from which payments for the contract purchases can be made. If no funds are appropriated and budgeted during the next fiscal year, this contract becomes null and void.