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HomeMy WebLinkAboutE-9 Staff Report - Purchase of Padmounted and Pole mounted TransformersCONSENT ITEM E-9 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL VIA: SERGIO GONZALEZ, CITY MANAGER FROM: TALIKA M. JOHNSON, DIRECTOR OF ADMINISTRATIVE SERVICES DATE: NOVEMBER 2, 2020 SUBJECT: PURCHASE OF PAD-MOUNTED AND POLE-MOUNTED TRANSFORMERS BACKGROUND: The City stocks as inventory, Pad-mounted and Pole-mounted 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 Pad-mounted and Pole-mounted 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 $75,348.16 for the purchase of Pad-mounted and Pole –mounted Transformers. ANALYSIS: Pad-mounted and Pole-mounted 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 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 these items 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. Staff did, however attempt to bid amongst the three largest vendors and ERMCO was the only bidder at this time due to the volatility of inventory. Consolidated Electrical Distributors provided no bid and Anixter Power Solutions provided an incomplete bid. Staff is requesting approval to purchase the Transformers with the only bidder, ERMCO for $75,348.16. APPROVED CITY COUNCIL 11/02/2020 Purchase of Transformers November 2, 2020 Page 2 FISCAL IMPACT: The total cost of $75,348.16 for the Transformers will be purchased under Stores Inventory Account Number 33-00-000-000-1601. The transformers 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