HomeMy WebLinkAboutStaff Report 3678
City of Palo Alto (ID # 3678)
City Council Staff Report
Report Type: Consent Calendar Meeting Date: 5/6/2013
City of Palo Alto Page 1
Summary Title: Amendment to Blanket Contract – Cooper Power Systems
Title: Request for Authorization to Increase the Existing Blanket Purchase
Order with Cooper Power Systems, Inc. by $225,000 for Fiscal Year 2013 and
to Approve a $225,000 Blanket Purchase Order with Cooper Power Systems,
Inc., for Fiscal Year 2014 for the Purchase of Padmount Switches
From: City Manager
Lead Department: Utilities
Recommendation:
Staff recommends that the City Council approve and authorize the City Manager or his designee
to increase the amount of the blanket purchase order with Cooper Power Systems, Inc.
(“Cooper”) by an additional $225,000 for the purchase of padmount switches for fiscal year
2013. Staff also recommends that the Council approve and authorize a blanket purchase order
amount of $225,000 for fiscal year 2014.
Executive Summary
Cooper is a manufacturer of electrical equipment used for construction of utility electric
systems. In 2011 a three year blanket purchase order was signed for the provision of padmount
switches to the City of Palo Alto. Purchase order limits are established each fiscal year. Council
authorization to increase the amount of the blanket purchase order for fiscal year 2013 and
2014 will allow staff to purchase the equipment necessary to facilitate the construction of the
electric system.
Background
The City has a three year (2012-2014) blanket purchase order with Cooper for supplying pad
mount electric switches for Customer Service and System Improvement Projects. A purchase
limit is set each fiscal year based on historical expenditures and future projections. For fiscal
year 2013 the purchase limit is $225,000. Staff requests council approval to increase the
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blanket purchase order amount by $225,000, for a total of $450,000, for the remainder of fiscal
year 2013.
Discussion
Historically Utilities procures six to seven switches in a year for its projects and this has
consistently met anticipated construction activities. However, in recent months several
projects have been undertaken which have increased the requirement for the number of
switches. This includes the new VMware campus which required the installation of six
switches; primary electric distribution line reconfiguration for substation upgrades; system
rebuild projects; and spare units to replenish emergency stock. The additional $225,000
purchase order amount for fiscal year 2013 will allow staff to purchase the necessary padmount
switches for Utilities projects other than the VMare campus. Staff anticipates, based on
planned underground system projects, padmount switch requirements in fiscal year 2014 will
be back to historic levels.
Resource Impact
Funding for the projects that require equipment to be purchased under the requested
authorization is available in the FY 2013 budget. This report is only requesting approval of the
blanket purchase order limit increase.
Policy Implications
No policy implications.
Environmental Review
Council authorization to increase the amount of the blanket purchase order with Cooper does
not meet the definition of a project pursuant to Public Resources Code Section 21065, thus no
environmental review is required.