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Request by Engineering Services Division to procure materials for 2025 CIP projects in advance of 2025 budget approval
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Submitted by:
Nick Deming, Construction Manager
Department:
Engineering
A. Issue
Approve spending 2025 dollars in 2024 for procurement of various materials for construction projects within the 2025 CIP.
B. Background/Discussion
Staff, in communication with vendors and other government agencies, has identified various materials that have lead times that will exceed the intended completion dates of upcoming 2025 CIP projects, if not ordered in advance. This request is similar to the approved procurement of watermain materials in 2022 ahead of the 2023 North Avenue project completed in coordination with the Wisconsin Department of Transportation.
Lead time issues with various materials has been an on-going, ever changing issue within the construction industry for the past several years. While some materials, such as large watermain valves and fittings, have consistently had longer lead times, other materials have fluctuated on a year-to-year basis or are not frequently included in our municipal projects. Specifically, for 2025, the following projects and materials have currently been identified as high risk to the project schedule if procurement of these materials is left within the project contract:
Projects Impacted:
• Wisconsin Avenue Bridge over Honey Creek
• Wisconsin Avenue, 68th Street to 72nd Street
• Watertown Plank Road, 124th Street to 113th Street
Materials Identified:
• Water main valves and fittings
• Signal poles and bases
• Street light poles
As a result of this continuing trend in the industry, staff is requesting approval to utilize up to $1,000,000 of the CIP dollars budgeted for 2025 in 2024 to procure long lead time materials. Staff is requesting to be able to allocate the requested funding on a case by case, project by project basis. Funding will be allocated to the appropriate accounts and projects with each procurement. Any funding made available in 2024 that is not spent will remain as part the 2025 CIP budget.
This request is in advance of the 2025 CIP budget, in which, staff is requesting an allocation of $1,000,000 of the 2026 CIP budget to be available to be spent in 2025 to procure long lead time materials.
C. Strategic Plan
Priority 3: Infrastructure, Goals 1 & 2
D. Fiscal Impact
The fiscal impact is advancing spending of 2025 dollars into 2024 to procure the materials. The cost of these materials is already included within the proposed 2025 CIP budget.
E. Recommendations
Approve the spending of up to $1,000,000 of 2025 dollars in 2024 for the procurement of materials for 2025 CIP projects. Unspent funding available in 2024 but not used will remain in the 2025 CIP project budget to be spent with the project in 2025.