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HomeMy WebLinkAboutE-12 Staff Report - Purchase of Underground Copper Cable with One SourceCONSENT ITEM E-12 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL VIA: SERGIO GONZALEZ, CITY MANAGER FROM: TALIKA M. JOHNSON, DIRECTOR OF ADMINISTRATIVE SERVICES DATE: NOVEMBER 18, 2019 SUBJECT: PURCHASE OF UNDERGROUNG COPPER CABLE #2 STRD BACKGROUND: The City stocks as inventory, underground copper cable #2 for use by the Electric Division for various projects throughout the city. As the Electric Division supplies electric service to its customers, underground copper cable #2 is used from inventory in the City’s Central Stores Warehouse. This action approves the purchase of underground copper cable, and will ensure that inventory levels are maintained so that no delays are experienced when cable is required. RECOMMENDATION: Staff recommends the City Council take the following action: 1)Approve the issuance of a purchase order to One Source Distributors, LLC in an amount of $100,402.74 ANALYSIS: Underground Copper Cable is essential to providing electric service to the City’s customers. This cable 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. Cable is stored as inventory under the Purchasing Division and is 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 Underground Copper Cable is 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. Staff did however bid amongst the three largest vendor’s and One Source Distributors, LLC was the lowest bidder. Staff is requesting approval to purchase the underground copper cable #2 Strd with the lowest bidder at the time, One Source Distributors, LLC for $100,402.74. APPROVED CITY COUNCIL 11/18/2019 Purchase Underground Copper Cable November 18, 2019 Page 2 FISCAL IMPACT: The total cost of $100,402.74 for the underground copper cable #2 Strd will be purchased under Stores Inventory Account Number 33-00-000-000-160. The cable will be charged to the 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