CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
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Approve the award of Change Order #1 to Contract 21-391, Molded Rubber and Cold Shrink Products, to Fletcher-Reinhardt Company and Universal Utility Supply Company of Illinois for an amount not to exceed $40,000 and a total award of $155,919.20
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DEPARTMENT: Electric Utility
SUBMITTED BY: Brian Groth, Director
BOARD/COMMISSION REVIEW:
N/A
BACKGROUND:
The Electric Utility (Utility) requires molded rubber products, cold and heat shrink terminations, splices, and arrestors to perform maintenance on the electrical system. These products, which are kept in inventory by the Utility, are used to repair underground distribution cables and make connections of these cables to transformers and switchgear for both capital and emergency projects.
DISCUSSION:
This change order is requested to provide additional funds to cover the increase in product costs and to allow the Utility to deal with the extended delivery times due to the current supply chain environment. The additional funds will be used to place orders for product that will be needed in the first half of 2023.
FISCAL IMPACT:
CIP#: N/A
Molded rubber and cold shrink products are expensed to the Operating Supplies account listed below. A total of $4,000,000 is budgeted for warehouse inventory in 2022. The requested increase will be budgeted appropriately in 2023 as these products will be received next year.
|
Account Number |
Fund Description |
Total Budget Amount |
|
40101300-541407 |
Operating Supplies |
$4,000,000 |