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HomeMy WebLinkAboutE-9 Staff Report - CM Signed Contracts March 2022CONSENT 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: APRIL 4, 2022 SUBJECT: PURCHASE ORDERS ISSUED IN MARCH WIT H CONTRACT AGREEMENTS EXECUTED BY CITY MANAGER BACKGROUND: On January 18, 2022, the City Council adopted Ordinance No. 2021-09 amending and restating Article VII, Chapter 2 of the Azusa Municipal Code relating to bidding, contracting and purchase of projects, supplies, services and equipment. Section 2-538 (c)(2) includes a provision that a list of contracts and their amounts be provided to the City Council when the City Manager/Purchasing Officer executes contracts within the authority limit of $50,000 or less. Furthermore, Section 2-519 (c)(7) allows the City’s Purchasing Agent to award inventory contracts for Central Stores to the lowest responsive and responsible bidder and present contracts exceeding $60,000 to City Council at the next meeting. This action is to receive and file the list of purchase orders issued in March 2022 with contracts executed by the City Manager. RECOMMENDATION: Staff recommends the City Council take the following action: 1)Receive and file the list of purchase orders issued in March 2022. ANALYSIS: On January 18, 2022, the City Council adopted Ordinance No. 2021-09 amending and restating Article VII, Chapter 2 of the Azusa Municipal Code relating to bidding, contracting and purchase of projects, supplies, services and equipment. The amendments provide more effective and efficient procurement processes. This includes an increase to the formal bidding procedures and thresholds for the City Manager to award contracts up to $50,000 for professional services, supplies and equipment. The Ordinance also includes a provision to allow the Purchasing Agent to award inventory contracts for Central Stores to the lowest responsive and responsible bidder and present contracts exceeding $60,000 to City Council at the next meeting in order to lock in costs for critical supply needs with the current volatile goods and commodity markets. APPROVED CITY COUNCIL 4/4/2022 CM Signed Contracts April 4, 2022 Page 2 Two purchase orders have been issued for contracts under $50,000 signed by the City Manager as follows: Vendor Name and Date Amount Fund Agreement Type Purpose Purchase Order No. Signed Clientfirst Consulting Group PO 036576 March 2, 2022 $24,850 48 – IT Services Vendor Proposal Community Development GIS Assistance Civiltec Engineering, Inc. PO 035171 March 17, 2022 Increase by $25,999 to $49,999 32 – Water Blanket Change Order, Increase for Engineering Services as needed. Three purchase orders have been issued by the Purchasing Agent for inventory supplies at Central Stores as follows: Vendor Name and Date Amount Bids Purchase Order No. Anixter, Inc. PO 036618 March 15, 2022 $229,634.21 Copper Cable - 45-47 Week Lead Time Anixter - $229,634.21(lowest bidder) One Source Distributors - $233,289.000 Graybar – No bid One Source Distributors, LLC. PO 036657 March 24, 2022 $420,516.73 Subsurface Transformers - 60-65 Week Lead Time One Source Distributors - $420,516.73 (only bidder) Anixter Power Solutions – No Bid ERMCO – No Bid Anixter, Inc. PO 036672 March 28, 2022 $44,706.38 U/G Copper Cable #2/0 strd and 4/0 Strd, 600 volts – 10-12 Weeks Lead Time Anixter - $44,706.38 (lowest bidder) One Source - $62,015.63 Graybar - $55,325.46 Although the purchase of Transformers and Cable is exempt from bidding under Azusa Municipal Code Section 2-517– Solicitation and bidding exemptions; Electric Transformers, primary and secondary copper cable, electric switches and controllers, each Purchase Order was bid amongst the known suppliers of each commodity and awarded to the lowest or only bidder. It is also important to note the extended lead-times of each inventory item(s). Volatility of production materials and extended lead- times have significantly increased product costs and limited order availability amongst suppliers. This CM Signed Contracts April 4, 2022 Page 2 unpredictability requires Staff to place orders as soon as quotes are received and vendors cannot hold pricing for extended periods of time. FISCAL IMPACT: The individual contract amounts and funding sources are listed above for City Manager signed contracts. Inventory items 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