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HomeMy WebLinkAboutE-7 Staff Report - Purchase of Underground Copper Cables with CED IncCONSENT ITEM E-7 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL VIA: SERGIO GONZALEZ, CITY MANAGER FROM: TALIKA M. JOHNSON, DIRECTOR OF ADMINISTRATIVE SERVICES DATE: DECEMBER 21, 2020 SUBJECT: PURCHASE OF UNDERGROUND COPPER CABLE #500 KCMIL BACKGROUND: The City stocks as inventory, underground copper cable #500 KCMIL 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 #500 KCMIL 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 Consolidated Electrical Distributors, LLC in an amount of $90,568.81 for the purchase of underground copper cable. ANALYSIS: Underground copper cable is essential to providing electric service to the City’s customers. These cables must constantly be kept in stock to avoid delays in service as they have a standard lead-time of six (6) to seven (7) weeks. Cables 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 Underground Copper Cables 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 Consolidated Electrical Distributors, LLC was the lowest bidder. Staff is requesting approval to purchase the underground copper cables with the lowest bidder at the time, Consolidated Electrical Distributors, LLC for $90,568.81 APPROVED CITY COUNCIL 12/21/2020 Purchase Underground Copper Cable #500 KCMIL December 21, 2020 Page 2 FISCAL IMPACT: The total cost of $90,568.81 for the underground copper cable 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