HomeMy WebLinkAboutE-6.1. Approve BPO for Smart Energy Water For FY 22-23CONSENT ITEM E-6
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY
BOARD
FROM: TIKAN SINGH, GENERAL MANAGER
DATE: JULY 25, 2022
SUBJECT: APPROVE BLANKET PURCHASE ORDER TO SMART ENERGY WATER IN THE
AMOUNT OF $100,000 FOR FISCAL YEAR 2022-2023
BACKGROUND:
Each year at this time, the City Council approves Blanket Purchase Orders (BPO) in excess of the City
Manager’s signing authority, which is currently set at $50,000, for the upcoming fiscal year. The
purchase orders are good for one year, expiring on June 30, 2023. The amounts listed on the BPOs are
estimates only, and will have no impact on the 2022-23 budget until they are used. This action approves
the issuance of Blanket Purchase Orders detailed on the attached schedule (Attachment 1).
RECOMMENDATION:
Staff recommends the Utility Board take the following action:
1)Approve the issuance of Blanket Purchase Orders detailed on the attached schedule, for
amounts in excess of $50,000 as outlined in Sec. 2-518 (a) of the Azusa Municipal Code.
ANALYSIS:
Blanket Purchase Orders (BPO) are Purchase Orders (PO) that are issued by City departments on an
annual basis for the following reasons:
•Repetitious purchases of low cost to medium cost supplies and or equipment used in the daily
performance of one’s job.
•To pay invoices for City Council approved services which occur repetitiously, either weekly,
monthly, or quarterly, such as, but not limited to, delivery services (UPS), Utilities (Verizon, Gas
Company) or standing orders (library books), etc.
•Repetitious payments against previously bid, City Council approved contractual agreements in
excess of $50,000.
Approved
Utility Board
07/25/2022
Approve BPO for Smart Energy Water
July 25, 2022
Page 2
• The purchase of electricity from power suppliers/generators, when placing an immediate order is
crucial to obtaining lowest possible price and delivery of such.
BPOs are not intended to bypass or supersede the normal purchasing procedures as set forth in the
Azusa Municipal Code, but rather to streamline the purchasing process when necessary.
Departments request BPOs as a back up to issuing regular POs, when it is not feasible to use a regular
PO (walk-in purchasing supplies at local merchants like Home Depot, local tree nurseries, etc., when
time is of the essence).
Additionally, with the exception of BPOs identified as a “Contractual Obligation” or “POWER
RESOURCES/PURCHASE OF ELECTRICITY”, most individual charges against these BPOs are well
below any formal bid threshold. For individual purchases of more than $5,000, normal bidding and
contracting procedures as outlined in Article VII of the Azusa Municipal Code is strictly enforced.
FISCAL IMPACT:
Money for the Blanket Purchase Orders have been budgeted for FY 2022-2023 by their respective
departments.
Prepared by: Reviewed and Approved:
Anthony Hernandez Daniel Smith
Senior Administrative Technician Utilities Admin and Financial Services Manager
Reviewed and Approved:
Tikan Singh
General Manager
Reviewed and Approved:
Sergio Gonzalez
City Manager
Attachment:
1) List of Blanket Purchase Orders Over $50,000
Annual Estimate Div/Dept Recommended Vendor Purpose Justification for BPO
$ 100,000.00 Customer Care &
Solutions/ Light & Water
Smart Energy Water Mobile Work Order
Management
Software
Sole Source Vendor
FY 2022 - 2023 Blanket Request Over $50,000