Loading...
HomeMy WebLinkAboutE-8 Staff Report - Purchase of Pad Mounted and Pole Mounted TransformersCONSENT ITEM E-8 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL VIA: SERGIO GONZALEZ, CITY MANAGER FROM: TALIKA M. JOHNSON, DIRECTOR OF ADMINISTRATIVE SERVICES DATE: NOVEMBER 1, 2021 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, Pad-mounted and Pole-mounted 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 Anixter, Inc. in an amount of $349,663.78 for the purchase of Pad-mounted and Pole-mounted Transformers. ANALYSIS: 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 forty-five (45) to forty-seven (47) 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 Anixter, Inc. was the only bidder. Staff is requesting approval to purchase the Transformers with Anixter, Inc. for $349,663.78 (+/-) for potential material price changes during the order period. APPROVED CITY COUNCIL 11/1/2021 Purchase of Transformers November 1, 2021 Page 2 Due to rapid raw material changes, and potential adverse impacts of COVID-19 a price change might be required. Prices are subject to change during the order period. Staff attempted to bid transformers with the two (2) other top supplies of transformers, ERMCO and One Source, however both companies were a no-bid. Both suppliers are not accepting new orders at this time due to extended lead times and current product and schedule commitments. Staff recommends awarding to Anixter, Inc., even with potential price increases to the order during the production period, due to extended lead times with all suppliers and limited availability. Transformers are essential to ensure no delay in service to electric customers. FISCAL IMPACT: The total cost of $349,663.78 (+/-) for potential material price changes 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