Submitted By: Kimberly Foster
presenter
Presentation By: Doug Peebles
end
Department: Electric Utility
STAFF RECOMMENDATION (Motion Ready):
title
Approve the First Amendment to the Agreement with Virginia Transformer Corp. for the purchase of a fourth power transformer in the amount of $1,880,372
end
OCALA'S RELEVANT STRATEGIC GOALS:
Operational Excellence
PROOF OF PUBLICATION:
Bid was released to the public October 26, 2023.
body
BACKGROUND:
The City of Ocala Electric Utility (OEU) Water Plant substation is the primary distribution hub for the Northeast 36th Avenue corridor. The existing Water Plant power transformer has been in service for 38 years and will exceed its operational lifespan by 2026. Even with regular maintenance, the risk of failure increases exponentially with age, which can lead to significant power outages and impact residential and commercial customers.
In recent years, the OEU service territory has experienced substantial growth. Numerous planned residential and commercial developments are in progress which, when completed, will lead to a significant increase in OEU's load demand. A large new power facility fed from the Water Plant substation will soon be in service. OEU must upgrade the existing 30MVA transformer to a 41.6MVA transformer to accommodate the anticipated load demand increase and future growth.
FINDINGS AND CONCLUSIONS:
On March 21, 2024, City and Contractor entered into an Agreement for Supply, Delivery, Installation and Testing of Power Transformers (the "Original Agreement"), City of Ocala Contract Number: ELE/240044 to supply, deliver, install and test three (3) power transformers and one (1) lot of spare transformer parts.
OEU is requesting the purchase of a fourth transformer on this contract. Current power transformer lead times are 14 to18 months. Purchasing an additional transformer is a proactive step to mitigate risks associated with equipment failure. Having the necessary infrastructure is essen...
Click here for full text