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Council approves bundled pipe purchase to secure market pricing for three water projects
Summary
City staff proposed bundling fusible-pipe purchases for three projects (Ridgecrest 24" line, Highway 66 24" transmission line, and finished-water lines from the South Water Treatment Plant) to obtain volume pricing; staff said the bundling achieved roughly a 13% discount, equating to about $800,000 in savings, and council approved the purchase.
Staff recommended bundling the purchase of fusible pipe for three separate water projects to gain volume pricing from extruders. Summer explained that, taken together (the Highway 66 line is the largest mileage, plus finished-water lines and a shorter Ridgecrest run), the combined quantity allowed the vendors to offer better unit pricing than buying the short Ridgecrest segment alone. "Sean was able to... negotiate a price of approximately 13%" off multiple buys, staff said, and a project presenter estimated around $800,000 in savings across the combined purchase.
The packet indicated the pipe purchase would be paid with bond funds (some material budgeted in 2024 bond funds and construction dollars in a 2026 bond for the treatment-plant finished lines). Council asked how much the city will save and received staff estimates; the council then moved and approved the purchase unanimously.
