Explanation
BACKGROUND: This legislation authorizes the Director of Finance and Management to establish a purchase order for Wire and Cable required by the Division of Power and Water to replenish stock used for customer development. Over the past two years there have been significant price increases due to escalating metals prices. During this same period there have been budget constraints that prevented the division from purchasing the quantities of Wire and Cable needed to maintain its inventory. The division's stock of Wire and Cable has been depleted to its lowest levels due to new customers, accidental cable cut replacements, and upgrading old cable to new within the distribution system. Adequate supplies are critical for the daily operation and maintenance of the electricity distribution and street lighting systems and for repairs as may be necessary due to storm damages or other emergencies.
The Wire and Cable will be obtained in accordance with the terms and conditions of the universal term contract FL003534 with Consolidated Electrical Distributors, Inc.
Their contract compliance number, 952563864, expires February 29, 2008.
Emergency action is requested so that the inventory of Wire and Cable may be replenished to safe levels as soon as possible to meet the daily operational needs of the division and to ensure that adequate materials are available for repairs as may be needed in emergency situations thus avoiding prolonged power outages.
FISCAL IMPACT: $105,000 was budgeted in the Electricity Operating Fund for the purchase of Wire and Cable in 2007. In addition, $800,000 was budgeted for materials and equipment as may be necessary for customer development installations. Since much of the division's Wire and Cable inventory has been depleted by using it for new customers, it is requested that this budget authority be used to replenish the inventory. The division's cash has improved after the most recent rate changes, there...
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