HomeMy WebLinkAboutE-1.1 Approve Amendment to BPO 035425CONSENT ITEM
E-1
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY
BOARD
FROM: TIKAN SINGH, GENERAL MANAGER
DATE: JUNE 27, 2022
SUBJECT: APPROVE AMENDMENT TO THE FISCAL YEAR 2021/22 BLANKET PURCHASE
ORDER 035425 ISSUED TO MJ STAR-LITE INC FROM $50,000 TO $150,000 FOR
JOINT POLE AND MISCELLANEOUS SERVICES
BACKGROUND:
The Electric division has recently received reports of multiple power outages at various locations within
a subdivision. This subdivision is bounded by Virginia Ann Drive, Deborah Avenue, and Sierra Madre
Avenue. Upon investigations, Staff has determined that the power outages were caused by failed direct
buried cables (service lines). Staff installed aerial cables by attaching them on the eaves at each
residence to temporarily keep the light on. To make the repair to the underground service lines, new
underground conduits and cables are necessary. A Blanket Purchase Order (“BPO”) was created to pay
MJ Star-lite for these types of services. Currently, the authorized amount on the BPO for MJ Star-lite is
$50,000. Staff recommends increasing the BPO amount to $150,000 to cover all the work required to
repairs of electric facilities at these residences.
RECOMMENDATION:
Staff recommends the Utility Board take the following action:
1)Approve an amendment to the Fiscal Year 2021/22 blanket purchase order 035425 issued to
MJ Star-Lite Inc. from $50,000 to $150,000 for underground conduit installation services.
Approved
Utility Board
06/27/2022
Amend Blanket Purchase Order with MJ Star-Lite, Inc.
June 27, 2022
Page 2
ANALYSIS:
Direct buried power lines pose the following issues: They are prone to damage by earth movements and
by rodents mistaking them for tree roots; they are very difficult to be repaired/replaced as they are
imbedded in the surrounding soil. If the direct buried cable fails, the only way to repair the power line is
to install new underground conduits between connection points, then install new cables in the conduits.
Unfortunately, the Electric division has a few remaining service areas with direct buried cables.
Recently, Staff received reports on power outages at various residences within a subdivision bounded by
Virginia Ann, Deborah Avenue, Sierra Madre Avenue. Staff has temporarily installed aerial cables by
attaching them to the eaves at each residence to keep the light on for each customer. For permanent
repair, Staff has retained MJ Star-Lite to install new conduits, utilizing existing BPO. However, due to
the spending on previous work performed by MJ Star-Lite during this fiscal year, the remaining balance
on the BPO is insufficient to cover the cost of the latest repairs. Staff is seeking approval to amend the
existing BPO with MJ-Star-Lite to pay for additional services.
Currently, the balance on BPO 035425 is $1,700, and the estimated cost of all the latest repairs by MJ
Star-Lite is $96,080. Therefore, an increase in the amount of $100,000 on BPO 035425 is recommended.
FISCAL IMPACT:
Sufficient funds for the increased total cost of $150,000 are budgeted under the Fiscal Year 2021/22
Electric Fund Outside Service and Repairs No. 33-40-735-930-6493
Prepared by: Reviewed and Approved:
Hien Vuong Tikan Singh
Assistant General Manager General Manager
Electric Operations
Reviewed and Approved:
Sergio Gonzalez
City Manager