HomeMy WebLinkAboutD-6 Staff Report - Purchase of 500KCML Copper CablePuAPPROVED
COUNCIL MEETING
04/18/2016se of Copper
Cables April 18, 2016
Page 1
CONSENT ITEM
D-6
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
VIA: TROY L. BUTZLAFF, ICMA-CM, CITY MANAGER
FROM: TALIKA JOHNSON, INTERIM DIRECTOR OF FINANCE
DATE: APRIL 18, 2016
SUBJECT: PURCHASE OF 500 KCMIL UNDERGROUND COPPER CABLE
SUMMARY:
The City stocks in its inventory, 15 KV 500 KCMIL Primary Copper Cable for use by the Electric
Division for various projects throughout the City. As the Electric Division supplies electric service
to its customers, underground copper cables are used from inventory in the City’s Central Stores
warehouse. One such project currently under way is the Lagunitas Brewery at Tenth Street and
Todd Avenue, where approximately 3,000 circuit feet of 500 KCMIL Copper Cable is required to
complete that circuit. 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 that 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 $92,930.13.
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 such as
the Lagunitas Brewery. 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, the Purchasing Division solicited formal sealed bids to
suppliers. Three bids were received, and a formal bid opening was conducted on April 11 in the
Office of the City Clerk. The bid from Karish Industries was disqualified do to irregularities in
their bid, in that they quoted aluminum cable, and not copper cable as specified in the bid. A fourth
APPROVED
COUNCIL MEETING
04/18/2016
Purchase of Copper Cables
April 18, 2016
Page 2
bid from Wesco Distribution was also disqualified because it was emailed to the City, and did not
follow the formal bid procedures as set forth in the Notice Inviting Bids. The results are listed
below, in terms of total cost, inclusive of sales tax and freight charges to the City.
Vendor Location Cost Lead Time
One Source Distributors Garden Grove, CA $92,930.13 15-17 weeks ARO
Anixter, Inc. Corona, CA $122,501.20 10 weeks ARO
Karish Industries Orange, CA DISQUALIFIED
Wesco Distribution Cerritos, CA DISQUALIFIED
FISCAL IMPACT:
The total cost of $92,930.13 for the copper cables will be purchased under Stores Inventory
Account Number 33-00-000-000-1601 and, as it is checked out, will be charged to the Light
Division Account Number 33-40-733-670-7145, with the appropriate project numbers.
Prepared by: Reviewed and Approved:
Tony Garcia Talika Johnson
Purchasing Buyer Interim Finance Director
Reviewed and Approved: Reviewed and Approved:
Louie F. Lacasella Troy L. Butzlaff, ICMA-CM
Management Analyst City Manager