Submitted By: Kimberly Foster
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Presentation By: Doug Peebles
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Department: Electric Utility
STAFF RECOMMENDATION (Motion Ready):
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Approve the purchase of 230kV motor operated disconnect switches from Southern States, LLC in the amount of $90,592
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OCALA’S RELEVANT STRATEGIC GOALS:
Operational Excellence
PROOF OF PUBLICATION:
Bid Released to Public: April 3, 2024
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BACKGROUND:
On October 18, 2022, the Council approved a Memorandum of Understanding between Duke Energy Florida, LLC (Duke Energy), and the Ocala Electric Utility (OEU) to sell the OEU-owned 230kV power line facilities at the Shaw substation. Duke Energy proposes to purchase the 230kV transmission line and related Shaw substation 230kV equipment to accommodate the construction of a new transmission line extension project.
FINDINGS AND CONCLUSIONS:
Because OEU will maintain ownership of all Shaw substation assets not associated with the 230kV line (69kV and 12kV), OEU requires protection to isolate an electric fault on the 230kV boundary. The City will purchase and install four switches to serve as the demarcation point and protect the city side or “high side of the OEU transformers”, allowing OEU to isolate its equipment when needed.
On April 3, 2024, the City issued Invitation to Bid (ITB) No.: ELE/240566 for the provisions of the necessary switches. Six vendors responded to the solicitation with Southern States, LLC presenting as the lowest responsive bidder.
FISCAL IMPACT:
Funding for this purchase is budgeted in the Fiscal Year 2023-24 accounts 332-032-183-531-69-65010 ($45,296) and 332-032-167-531-69-65010 ($45,296).
PROCUREMENT REVIEW:
These goods were procured in compliance with the City’s Procurement Policy.
LEGAL REVIEW:
N/A. The terms and conditions in the City’s purchase order will govern this purchase.
ALTERNATIVE:
• Approve with Changes
• Table
• Deny