HomeMy WebLinkAboutResolutions - No. 2019-239RESOLUTION NO. 2019-239
A RESOLUTION OF THE LODI CITY COUNCIL AUTHORIZING
LODI ELECTRIC UTILITY TO PURCHASE SUPPLIES THROUGH LONG-TERM
(TWO-YEAR WITH ONE-YEAR EXTENSION) CONTRACTS
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WHEREAS, Lodi Electric Utility (LEU) navigates through the existing bidding/purchasing
process for supplies such as wire, transformers, and poles multiple times throughout the year to
order the 719 various normal stock material items used daily to construct and maintain the Lodi
Electric System; and
WHEREAS, LEU currently asks vendors to bid on smaller quantities due to minimal
storage space at existing facilities, resulting in the need to repeat this process more often, and
some vendors will not bid on these requests due to the small quantity; and
WHEREAS, this overall process takes two or more months to receive some materials,
and LEU pays a higher unit cost due to the low-volume purchasing; and
WHEREAS, the proposed process would give LEU the ability to secure bids from
vendors for a two-year purchase agreement with a one-year extension clause using the existing
standard bid process with each long-term agreement approved by City Council on a one-time
basis, with staff then ordering off the pre -approved bid "menu"; and
WHEREAS, with the proposed process, LEU expects to expedite the delivery process
from vendors who can stock materials at their local facility, have the ability to secure reduced
unit pricing by agreeing to two-year terms with the vendors, and have the potential of
competitive bidding between vendors; and
WHEREAS, LEU will provide an update to Council annually as it relates to actual cost
savings realized and will seek further direction from Council at the end of the proposed
three-year term based on the effectiveness of the proposed change.
NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby
authorize Lodi Electric Utility to purchase supplies through long-term (two-year with one-year
extension) contracts using the existing standard bid process with each long-term agreement to
be brought to the City Council for approval.
Dated: November 20, 2019
I hereby certify that Resolution No. 2019-239 was passed and adopted by the City
Council of the City of Lodi in a regular meeting held November 20, 2019, by the following vote:
AYES: COUNCIL MEMBERS — Johnson, Kuehne, Nakanishi, and Mayor Chandler
NOES:
COUNCIL MEMBERS — None
ABSENT:
COUNCIL MEMBERS — Mounce
ABSTAIN:
COUNCIL MEMBERS — None
J NNIFE ;XAIO�LO
City Clerk
2019-239