HomeMy WebLinkAboutE-5 Staff Report - Purchase of Padmounted TransformersCONSENT ITEM
E-5
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
VIA: SERGIO GONZALEZ, CITY MANAGER
FROM: TALIKA M. JOHNSON, DIRECTOR OF ADMINISTRATIVE SERVICES
DATE: AUGUST 17, 2020
SUBJECT: PURCHASE OF PADMOUNTED TRANSFORMERS
BACKGROUND:
The City stocks as inventory, Padmounted Transformers for use by the Electric Division for various
projects throughout the city. As the Electric Division supplies electric service to its customers,
Padmounted Transformers are used from inventory in the City’s Central Stores Warehouse. This action
approves the purchase of Padmounted Transformers, and will ensure that inventory levels are
maintained so that no delays are experienced when required.
RECOMMENDATION:
Staff recommends the City Council take the following action:
1)Approve the issuance of a purchase order to ERMCO in an amount of $40,949.05 for the
purchase of Padmounted Transformers.
ANALYSIS:
Padmounted Transformers are essential to providing electric service to the City’s customers. These gears
must constantly be kept in stock to avoid delays in service as they have a standard lead-time of eight (10
to ten (10) weeks. Padmounted Transformers are stored as inventory under the Purchasing Division and
are released when utilized by the Electric Division. The cost to purchase these items exceeds the City
Manager’s authority, thus, City Council approval is required.
The purchase of Padmounted 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. Staff did however, bid amongst the three largest vendors
and ERMCO was the lowest bidder. Staff is requesting approval to purchase the Padmounted
Transformers with the lowest bidder at the time, ERMCO for $40,949.05.
APPROVED
CITY COUNCIL
8/17/2020
Purchase Padmounted Transformers
August 17, 2020
Page 2
FISCAL IMPACT:
The total cost of $40,949.05 for the Padmounted Transformers will be purchased under Stores Inventory
Account Number 33-00-000-000-1601. The cables 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