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ITEM 30 |
City Council Memorandum Management Services Memo No. N/A
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Date: |
August 18, 2022 |
To: |
Mayor and Council |
Thru: |
Joshua H. Wright, City Manager Dawn Lang, Deputy City Manager - CFO |
From: |
Christina Pryor, Purchasing and Material Manager |
Subject: |
Agreement No. WH2-914-4361, Amendment 1, for Electrical Supplies |
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Proposed Motion: |
Move City Council approve Agreement No. WH2-914-4361, Amendment No. 1, with Consolidated Electrical Distributors, Inc., DBA Arizona Electric Supply, for electrical supplies, in an amount not to exceed $400,000, for the period of September 1, 2022, through August 31, 2023. |
Background/Discussion: |
This agreement is for the purchase of a variety of electrical supplies stocked in Central Supply and used by the Public Works and Utilities, Community Services, Neighborhood Resources, and Buildings and Facilities departments and divisions. These departments and divisions can also purchase items directly from the recommended supplier. Items available under this agreement include street lighting, electrical wire, connectors, conduits, ballasts, and traffic equipment. |
Evaluation: |
On August 26, 2021, City Council approved an agreement with Consolidated Electrical Distributors, Inc., DBA Arizona Electric Supply, for electrical supplies, for a one-year period, with the option of up to four one-year extensions. The Contractor has agreed to extend for one additional year at the same terms and conditions with a price increase. Consolidated Electrical Distributors, Inc., DBA Arizona Electric Supply, was notified by its supplier manufacturers of price increases ranging from 5% to 25% on items the City purchases. The supplier manufacturers cite cost increases on copper and steel, inflation in domestically sourced raw metal materials, and increases in the costs of freight and shipping as the cause of the increased prices. Staff reviewed the requested increase and finds it to be fair and reasonable based on inflation in these types of materials. Staff recommends extension of this Agreement for the term of September 1, 2022, through August 31, 2023. |
Financial Implications: |
Funds for the purchase of electrical supplies will come from the Central Supply Inventory account (101.0000.1516). Individual cost centers will be charged for supplies as they are issued from Central Supply to various departments. |
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