SR-11-26-2013-3DCity Council Meeting: November 26, 2013
Agenda Item: 5-V
To: Mayor and City Council
From: Martin Pastucha, Director of Public Works
Subject: Purchase Order Increase for Electrical and Street Lighting Supplies
Recommended Action
Staff recommends that the City Council approve a change order to purchase order
22785 -OF in the amount of $45,000 with Electric Supply Connection, a California -based
company, to cover purchases of electrical and street lighting supplies for the remainder
of FY 2013 -14. This would result in a revised purchase order total not to exceed
$127,250.
Executive Summary
The City purchases a variety of electrical supplies to maintain City facilities and street
lights. On June 25, 2013, purchase order 22785 -OF with Electric Supply Connection in
the amount of $82,250 was approved for procurement of electrical and street lighting
supplies through June 30, 2014. Due to numerous incidences of street light wire thefts
resulting in several street light outages beginning in September 2013, staff has
purchased approximately 95,000 feet in replacement wiring and related supplies to
effect repairs at a cost of $49,000, of which approximately $45,000 was provided by
Electric Supply Connection. The total amount paid or committed on this purchase order
through November 2013 is $66,249. Therefore, staff recommends an increase to
purchase order 22785 -OF in the amount of $45,000 to cover anticipated invoices from
Electric Supply Connection for the remainder of FY 2013 -14.
Background
In August 2011, Electric Supply Connection was one of three electrical supply vendors
selected by the City under maintenance supplies informal bid #37870 -OG. On June 26
2012, and June 25, 2013, Council approved purchase orders for Electric Supply
Connection exercising renewal years for FY 2012 -13 and FY 2013 -14, respectively as
part of a broader list of vendors identified by City Purchasing to be selected as part of
an informal bid process but had renewal years available exceeding a cumulative
agreement total of $100,000. FY 2013 -14 purchase order 22785 -OF has been issued in
the amount of $82,250 with a total approved three -year agreement amount of $212,768.
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Discussion
In September 2013, the City began experiencing several localized street light outages
caused by multiple thefts of copper street light wiring. As of early November, staff has
purchased approximately 95,000 feet of replacement wire and related supplies at a cost
of $49,000 to restore street lighting service. Of this amount, approximately $45,000 has
been purchased from Electric Supply Connection. Police reports have been made and
countermeasures have been taken to secure wiring against theft, but the recycling value
of copper ($3.23 per pound cited in the October 10, 2013 edition of the Santa Monica
Daily Press) has led to an unprecedented series of wire thefts in Santa Monica.
In addition to street light wiring, the City purchases a number of materials from Electric
Supply Connection to maintain City facilities (conduit, lighting, outlets, panels, etc.) and
fulfill more than 3,000 work orders per year. With a store location one mile from the City
Yards, Electric Supply Connection has served as a key supplier for many years,
allowing staff to quickly make repairs and replacements to City electrical equipment at
reasonable cost. As of October 17, 2013, Electric Supply Connection quoted better
pricing ($0.46 per foot plus tax) for #6 AWG copper wire than the City's other primary
electrical supply vendor, One Source Distributors ($0.52 per foot plus tax). Other local
supply houses do not have the breadth of selection or pricing that Electric Supply
Connection offers.
Total Electric Supply Connection expenditures of $66,249 have used up 81 % of
purchase order 22785 -OF less than halfway through the fiscal year. Due to the
unexpected costs of street lighting wiring replacements, staff recommends an increase
to the existing purchase order in the amount of $45,000 to cover anticipated purchases
for the remainder of FY 2013 -14, for a revised purchase order amount of $127,250.
Staff will proceed with a formal bid process for selection of electrical supply vendor(s)
with a local store presence in FY 2014 -15.
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Financial Impacts & Budget Actions
The change order to be awarded to Electric Supply Connection is $45,000 for
purchases through the end of FY 2013 -14, for an amended purchase order total not to
exceed $127,250. Funds are available in the FY 2013 -14 budget in division 01452;
purchase order will be charged to account 014523.544010.
Prepared by: Kevin Nagata, Administrative Analyst
Approved:
Martin Pastucha
Director of Public Works
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Forwarded to Council:
Rod Gould
City Manager