Council action to issue Change Order to Purchase Order 23000108 to Wesco Distribution Inc in the amount of $300,000 to cover additional expenses for pole mount and pad mount transformers for the Power & Light Department. New revised amount of PO will be $540,000.

Staff recommends approval to issue the Change Order.

Power and Light (IPL) uses pole mount and pad mount transformers to convert the high 'primary' voltage of the overhead or underground distribution lines to the lower 'secondary' or 'utilization' voltage inside the building. The primary distribution wires use the three-phase system. The transformers are divided into three groups as follows: Group 1 – Pole Mount; Group II – Single Phase Pad Mount; and Group III – Three Phase Pad Mount. The transformers are used in establishing new electrical service and for the replacement of defective units.

The City entered into a contract with Wesco Distribution Inc and WEG Electric Corporation in 2021 for pole mount and pad mount transformers. When the contract was approved both providers gave pricing for one year only and were supposed to provide subsequent year pricing 90 days prior to a renewal date. The initial purchase order was issued on July 15, 2022, in the amount of $240,000. Power & Light’s Transmission & Distribution Division is in need of adding inventory as spares as projects such as the upcoming Northpoint Industrial Park Development and other projects eventually use what is in inventory.

If approved, the Power & Light Department requests authorization of change orders up to an additional ten (10) percent of the change order total, provided appropriations are available.

The fiscal impact to the City is $540,000. Funding is included in the 2022/2023 fiscal year , page 199, project 1370 -F, account 6122-5314.