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HomeMy WebLinkAboutE-6 Staff Report - PURCHASE OF 750 KVA TRANSFORMERCONSENT ITEM E-6 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL VIA: SERGIO GONZALEZ, CITY MANAGER FROM: TALIKA M. JOHNSON, DIRECTOR OF ADMINISTRATIVE SERVICES DATE: SEPTEMBER 16, 2019 SUBJECT: PURCHASE OF TWO (2) 750 KVA THREE-PHASE PADMOUNT TRASNFORMERS BACKGROUND: The City stocks as inventory, 750 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 a Padmount Transformer, and will ensure that inventory levels are maintained so that no delays are experienced when a transformer is required. RECOMMENDATION: Staff recommends the City Council take the following action: 1) Approve the issuance of a purchase order to ERMCO in an amount not to exceed $34,383. 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. APPROVED CITY COUNCIL 9/16/19 Purchase 750 KVA Transformer September 16, 2019 Page 2 FISCAL IMPACT: The total cost of $34,383 ($31,400 plus $2,983 sales tax) for the transformers 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 Administrative Services Reviewed and Approved: Sergio Gonzalez City Manager