CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
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Approve the award of Change Order #1 to Contract 20-339, Electric Equipment Painting, to BP&T Construction for an amount not to exceed $200,000 and for a total award of $299,100
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DEPARTMENT: Electric Utility
SUBMITTED BY: Brian Groth, Director
BOARD/COMMISSION REVIEW:
N/A
BACKGROUND:
The purpose of this contract is to maintain an on-call contractor to provide electrical painting services, including welding and patchwork, to maintain metallic exteriors of transformers, switches, fuse cans and other metal electrical enclosures. The Electric Utility (Utility) has identified several devices for refurbishment instead of replacement and provided the list in the bid document advising that the Utility retains the right to paint all or none in the term.
Proactive maintenance is key to the lifecycle of electrical equipment. Repairing and repainting electric equipment is one of the easiest ways of preserving them at a far more economical rate than replacement. With the recent supply chain delays for electrical equipment, the Utility has seen lead times for project delivery and equipment orders increase by three times along with a 40%-60% increase in cost. Being proactive with the repairing and repainting of electrical equipment exteriors before these items become unrepairable is often a better solution than replacement.
The City Manager awarded Bid 20-339 to BP&T Construction on December 12, 2020 for a one-year term from January 1, 2021 to December 31, 2021, with two, one-year options to extend.
This change order was not foreseeable and is requested to increase the authorized amount of the contract by $200,000 to allow for additional painting of electric equipment within the current term.
DISCUSSION:
The contract was initially planned as a three-year cycle, but with concern over the delays in acquiring materials, the Utility is recommending to increase the electrostatic painting this year which will address customer requests and improve the esthetics and longevity of the electrical equipment. Additionally, approved spending for the one-year term has been reached.
BP&T Construction has performed exceptionally well as a painting contractor and has completed all assigned work for this fiscal year ahead of schedule.
FISCAL IMPACT:
CIP#: N/A
Electric equipment painting is expensed to the Other Professional Services account listed below. The requested change order exceeds the budgeted amount of $100,000 for this expense and can be accommodated by savings in other contracted services such as insulator cleaning and transmission tower painting.
|
Account Number |
Fund Description |
Total Budget Amount |
|
40251300-531309 |
Electric Utility |
$228,500 |