Council action to issue Change Order #1 to Purchase Order 23000188 to Anixter Inc (Anixter) in the amount of $85,000.00 to cover additional expenses for Itron Meters for the Power & Light Department. New amount of PO will be $130,000.00.

Staff recommends approval to issue the Change Order.

With all of the new Commercial and Residential development in the City of Independence the demand for meters has risen dramatically. As well as the ongoing rise in costs for materials Power & Light has exceeded the normal purchase amount for meters. At this point Power & Light is having to change their Min/Max stock levels to coincide with the current demand. “Min” value represents a stock level that triggers a reorder, and the “Max” value represents a new targeted stock level following the reorder. Power & Light is expecting an additional $30,000 this FY due to the demand of Solar metering that is a residential option to our customers.

Blanket purchase order 23000188 was issued to Anixter for the initial needs for Power & Light at the beginning of the fiscal year on July 29, 2022. Anixter was awarded a contract for Itron Meters in 2020, but the expenditures to date for this contract have been less than the amount required for Council approval.

Approval of this item shall authorize change orders up to an additional ten percent of the new total amount of the purchase order, provided appropriations are available.

The fiscal impact to the City is $130,000.00. Funding was included in the 2022/2023 adopted budget, Page 202, Project E (1370 -F - - ), account (6122-5314) Inventory Purchases.