HomeMy WebLinkAboutE-4 Purchasing Underground Copper CablePurchase of Copper Cables
October 2,2017
Page 1
CONSENT ITEM
E-4
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
VIA: DON PENMAN, INTERIM CITY MANAGER
FROM: TALIKA M. JOHNSON, DIRECTOR OF FINANCE
DATE: OCTOBER 2, 2017
SUBJECT: PURCHASE OF 3,000’ of 500 MCM (THOUSAND CIRCULAR MIL), 9,000’ of
350 MCM 600 VOLT SECONDARY CABLE, AND 20,000’ of #2 STRAND 15 KV
(THOUSAND VOLT) PRIMARY UNDERGROUND COPPER CABLE
SUMMARY:
The City stocks in its inventory, 15 KV (Thousand Volt) 500 MCM (Thousand Circular Mil), 350
MCM (Thousand Circular Mil) 600 Volt Secondary Cable, and #2 Strand 15 KV (Thousand Volt)
Primary Copper Cable for use by the Electric Division for various projects throughout the City.
The Electric Division uses underground copper cables to provide service to its customers. City
inventory is at the re-order point for the above mentioned cables. This action approves the
purchase of the copper cable, and will ensure that inventory levels are maintained so that no delays
are experienced when additional copper cables are required.
RECOMMENDATION:
Staff recommends the City Council take the following action:
1) Approve the issuance of a purchase order to One Source Supply in an amount not to
exceed $141,097.47.
DISCUSSION:
Underground copper cables are essential to providing electric service to the City’s customers.
These cables must constantly be kept in stock to avoid delays in the progress of projects. Cables
are stored as inventory under the Purchasing Division and are released when utilized by the
Electric Division. The cost to purchase this item exceeds the City Manager’s authority, thus, City
Council approval is required.
To ensure that the City is not overpaying, and pursuant to Sec. 2-517 (37) of Ordinance No. 2015-
06 of the A.M.C., which exempts the City from formal bidding on copper cables, the Purchasing
Division solicited informal bids from three known local suppliers. Three informal bids were
received. The results are listed below, in terms of total cost, inclusive of sales tax and freight
charges to the City.
APPROVED
CITY COUNCIL
OCTOBER 2, 2017
Purchase of Copper Cables
October 2,2017
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Vendor Location Cost Lead Time
One Source Distributors Garden Grove, CA $141,097.47 10-12 weeks ARO
Anixter, Inc. Corona, CA $291,389.78 12-15 weeks ARO
Wesco Distribution Cerritos, CA $149,441.89 12-15 weeks ARO
Staff recommends the contract be awarded to One Source Distributors in the amount not -to-exceed
$141,097.47 which includes sales tax and freight charges to the city.
FISCAL IMPACT:
There is no fiscal impact associated with the proposed recommendat ions. The total cost of
$141,097.47 for the copper cables will be purchased through a purchase order. The FY 2017-17
Utility budget included $300,000 under 33-40-733-670-7145 for inventory items including copper
cables. When the inventory is received, it will be recognized under the Stores Inventory Account
Number 33-00-000-000-1601. When the inventory is used and checked out, will be charged to the
appropriate project numbers.
Prepared by: Reviewed and Approved:
Tony Garcia Talika M. Johnson
Purchasing Buyer Director of Finance
Reviewed and Approved: Reviewed and Approved:
Louie F. Lacasella Don Penman
Senior Management Analyst Interim City Manager