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HomeMy WebLinkAboutE-5 Staff Report - CM Signed Contracts February 2023CONSENT ITEM E-5 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL VIA: SERGIO GONZALEZ, CITY MANAGER FROM: TALIKA M. JOHNSON, DIRECTOR OF ADMINISTRATIVE SERVICES DATE: FEBRUARY 6, 2023 SUBJECT: PURCHASE ORDERS ISSUED WITH 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 purchase orders issued with contracts executed by the City Manager and inventory by the Purchasing Agent. RECOMMENDATION: Staff recommends the City Council take the following action: 1)Receive and file the list of purchase orders approved by the City Manager and Central Stores for the months of December 2022 and January 2023. 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. APPROVED CITY COUNCIL 2/9/2023 CM Signed Contracts February 6, 2023 Page 2 For the months of December 2022 and January 2023, four purchase orders have been issued for contracts under $50,000 signed by the City Manager as follows: Vendor Name PO Amount Fund Agreement Type Purpose Number / Date Clientfirst Consulting Group, LLC 038432 12/12/22 $25,780 48 Assessment Proposal Assessment of Steps for Microsoft Office 365 Upgrade Bakers Man Productions, LLC. 038459 12/21/22 $50,000 10 Professional Services Agreement Video Production Services Transtech Engineers, Inc. 038467 12/21/22 $45,000 10 Professional Services Agreement Planning Consulting Services Korn Randolph, Inc. 038507 1/5/23 $38,030 28 Professional Services Agreement Outdoor Library Conceptual Design Services One purchase order was issued for inventory supplies at Central Stores. Although the purchase of 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, the Purchase Order was bid amongst the known suppliers and awarded to the lowest bidder. It is also important to note the extended lead-times of inventory item(s). Volatility of production materials and extended lead-times have significantly increased product costs and limited order availability amongst suppliers. This unpredictability requires Staff to place an order as soon as quotes are received as vendors cannot hold pricing for an extended period of time. Vendor Name PO Number / Date Amount Bids Anixter, Inc. 038464 12/21/22 $379,724.15 Underground Copper Cable – 81-84 Week Lead Time Anixter - $379,724.15(lowest bidder) CED - $432,951.75 One Source Distributors - $529,613.44 CM Signed Contracts February 6, 2023 Page 2 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