HomeMy WebLinkAboutE-4 Staff Report - Blanket Increase So Cal GasCONSENT ITEM
E-4
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
VIA: SERGIO GONZALEZ, CITY MANAGER
FROM: MIKI CARPENTER, DIRECTOR OF COMMUNITY RESOURCES
DATE: APRIL 3, 2023
SUBJECT: REQUEST TO INCREASE FISCAL YEAR 2022/2023 BLANKET PURCHASE
ORDER FOR THE GAS COMPANY
BACKGROUND:
In accordance with Sec. 2-518 (a) of the Azusa Municipal Code, purchase orders over $50,000 require
Council approval. The Community Resources Department is requesting authorization to increase the FY
2022/23 blanket purchase order with The Gas Company for gas services at Memorial Park, NRC and
Slauson Pool, from $50,000 to $130,000.
RECOMMENDATION:
Staff recommends the City Council take the following action:
1)Approve an increase to The Gas Company Blanket Purchase Order for Fiscal Year 2022/23 to a
not-to-exceed amount of $130,000.
ANALYSIS:
The Community Resources Department uses The Gas Co for provision of gas at Memorial Park, NRC
and Slauson Pool. The cost of natural gas has increased significantly over the past year. The payment of
utilities is exempt per Azusa Municipal Code Section 2-517(13) – Solicitation and bidding exemptions
for Utilities service payments, utility connection and/or installation charges. Council action is required
to increase the blanket purchase order as the request exceeds the City Manager’s $50,000 approval
authority in accordance with the City’s purchasing policy.
Approved
City Council
April 3, 2023
Increase Blanket PO
April 3, 2023
Page 2
FISCAL IMPACT:
There will be a reduction of $45,000 to the General Fund balance as a result of the proposed
recommendation. Due to high utility commodity cost that the Department has no control over, an
additional budget in the amount of $45,000 is requested to cover the higher utility cost associated with
the General Fund Aquatics Cost Center (10-25-410-100-6910) purchase order. The Cost Center (10-25-
410-000) that covers NRC and Memorial Park has funds available to cover increased costs for FY
2022/23, but not enough to cover the Aquatic Center. Upon Council approval, staff will prepare a
budget amendment and increase $45,000 of budget under account 10-25-410-100-6910.
Prepared by: Reviewed by:
Nikki Rosales Miki Carpenter
Senior Management Analyst Director of Community Resources
Fiscal Review by: Reviewed and Approved by:
Talika M. Johnson Sergio Gonzalez
Director of Administrative Services City Manager