HomeMy WebLinkAboutE-7 Staff Report - Purchase of Three Phase Padmounted TransformersCONSENT 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: AUGUST 16, 2021
SUBJECT: PURCHASE OF THREE-PHASE PAD-MOUNTED TRANSFORMERS
BACKGROUND:
The City stocks as inventory, Pad-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 $153,889.16 for the
purchase of Three-Phase Pad-mounted Transformers.
ANALYSIS:
Pad-mounted Transformers are essential to providing electric service to the City’s customers. These
transformers must constantly be kept in stock to avoid delays in service as they currently have an
extended lead time of twenty-two (22) to twenty-four (24) 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 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 attempt to bid amongst the three largest vendors
and ERMCO was the lowest bidder. Staff is requesting approval to purchase the Transformers with
ERMCO for $153,889.16
APPROVED
CITY COUNCIL
8/16/2021
Purchase of Transformers
August 16, 2021
Page 2
FISCAL IMPACT:
The total cost of $153,889.16 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