HomeMy WebLinkAboutResolutions - No. 2021-275RESOLUTION NO, 2021-275
A RESOLUTION OF THE LODI CITY COUNCIL AUTHORIZING THE
CITY MANAGER TO MAKE PURCHASES FOR LODI ELECTRIC UTILITY
INVENTORY ITEMS UP TO $250,000 PER TRANSACTION, WITH
SUBSEQUENT CITY COUNCIL RATIFICATION, PRIOR TO THE EFFECTIVE
DATE OF ORDINANCE TO INCREASE THE CITY MANAGER'S CONTRACT
AUTHORITY TO MAXIMUM AMOUNT OF $250,000 PER TRANSACTION FOR
LODI ELECTRIC UTILITY INVENTORY ITEMS, THROUGH
DECEMBER 31, 2023, TO ADDRESS SUPPLY CHAIN CHALLENGES
WHEREAS, on November 20, 2019, City Council approved Resolution No. 2019-239
authorizing Lodi Electric Utility (LEU) to purchase certain large inventory items through long-
term "blanket" contracts to expedite delivery and secure reduced unit pricing through longer
term contractual arrangements with vendors; and
WHEREAS, LEU executed multiple contracts under this authorization and until recently,
had planned to present to Council a final request that would have extended this authorization to
include LEU's remaining inventory items; and
WHEREAS, with current global raw material shortages, the global shipping crisis, and
increased demand for materials in the electric industry nationwide due to wildfires and other
natural disasters, LEU has been presented with challenges as it relates to securing orders and
maintaining sufficient inventory levels under the previously authorized long-term contract
arrangements; and
WHEREAS, vendors are unwilling to quote materials due to shortages, material quotes
are received but only valid for one day or less versus the historical norm of quotes valid for 30 to
60 days, and lead times are no longer guaranteed, and in most cases have tripled in duration;
and
WHEREAS, the reasons for the delays are global and entirely outside the control of LEU
as the entire supply chain has not been properly functioning for the last year and it will take
some time to recover to a more normal state; and
WHEREAS, LEU needs maximum flexibility during this period of uncertainty to procure
adequate resources to ensure critical work on maintaining a safe and reliable electric
distribution system for Lodi is not impacted; and
WHEREAS, failure to expedite purchases and any delays associated with securing
additional approvals for inventory purchases on items quoted under time and availability
constraints will prevent LEU from maintaining sufficient inventory to meet future project needs
as it relates to distribution system maintenance, as well as new development projects; and
WHEREAS, LEU is requesting the City Manager's contract authority limit be raised to a
maximum of $250,000, from the current maximum of $20,000 per transaction, for LEU inventory
items through December 31, 2023, by an ordinance amending LMC Section 2.12.060(T)
introduced on October 6, 2021; and
WHEREAS, LEU is requesting authorization for the City Manager to make purchases up
to $250,000 for Lodi Electric Utility inventory items with subsequent City Council ratification prior
to the effective date of the aforementioned ordinance. 1
NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby
authorize the City Manager to make purchases for Lodi Electric Utility (LEU) inventory items up
to $250,000 per transaction with subsequent City Council ratification prior to the effective date of
the ordinance to temporarily increase the City Manager's contract authority for LEU inventory
items to address supply chain challenges.
Dated: October 6, 2021
I hereby certify that Resolution No. 2021-275 was passed and adopted by the City
Council of the City of Lodi in a regular meeting held October 6, 2021, by the following vote:
AYES: COUNCIL MEMBERS — Chandler, Hothi, Khan, Kuehne, and
Mayor Nakanishi
NOES: COUNCIL MEMBERS — None
ABSENT: COUNCIL MEMBERS — None
ABSTAIN: COUNCIL MEMBERS — None
JENNIF CUSMIR
City Clerk
2021-275