HomeMy WebLinkAboutE-4 Staff Report - 2000 kva Three Phase Padmount TransformerCONSENT ITEM
E-4
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: TALIKA M. JOHNSON, DIRECTOR OF FINANCE
VIA: SERGIO GONZALEZ, CITY MANAGER
DATE: MAY 6, 2019
SUBJECT: PURCHASE OF 2000 kva 3 PHASE PADMOUNT TRANSFORMERS
BACKGROUND:
The City stocks as inventory, 2000 kva Three (3) Phase Padmount Transformers for use
by the Electric Division for various projects throughout the city. As the Electric Division
supplies electric service to its customers, transformers are used from inventory in the
City’s Central Stores Warehouse. This action approves the purchase of three (3)
Padmount Transformers, and will ensure that inventory levels are maintained so that no
delays are experienced when a transformer is required.
RECOMMENDATION:
Staff recommends that the City Council take the following action:
1)Approve the issuance of a purchase order to ERMCO in an amount not to
exceed $99,256.29.
ANALYSIS:
Padmount Transformers are essential to providing electric service to the City’s
customers. These transformers must constantly be kept in stock to avoid delays in the
service as they have a standard lead-time of ten (10) to twelve (12) weeks. Transformers
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.
The purchase of Transformers are exempt from bidding under Azusa Municipal Code
Section 2-517 (37) – Solicitation and bidding exemptions; Electric Transformers, primary
and secondary copper cable, electric switches and controllers.
Purchase Transformer
May 6, 2019
Page 2
FISCAL IMPACT:
The total cost of $99,256.29 ($90,645.00 plus $8,611.28 sales tax) for the transformer
will be purchased under Stores Inventory Account Number 33-00-000-000-1601, and will
be charged to Light Division once checked out with the appropriate account number.
Prepared by: Reviewed and Approved
Adriana Garcia Talika M. Johnson
Purchasing Agent Director of Finance
Reviewed and Approved:
Sergio Gonzalez
City Manager