Submitted By: Glen Moehling
Presentation By: Doug Peebles
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Department: Electric Utility
STAFF RECOMMENDATION (Informational Item Only):
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Critical purchase of emergency environmental restoration services rendered by ETC Services on June 20, 2024, in the amount of $50,106
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OCALA’S RELEVANT STRATEGIC GOALS:
Operational Excellence
PROOF OF PUBLICATION:
N/A
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BACKGROUND:
By law, Ocala Electric Utility (OEU) is required to develop and maintain a Spill Prevention, Control and Countermeasure (SPCC) Plan which is to be executed in the event of an emergency.
FINDINGS AND CONCLUSIONS:
On June 20, 2024, a 1500 kVA transformer experienced a failure, resulting in mineral oil leaking from its tank. OEU enacted its SPCC Plan, which includes a list of qualified emergency service providers. The service providers identified in the Plan were either unavailable or unable to meet the necessary requirements. OEU expanded its search for a qualified emergency service provider beyond those identified in the SPCC Plan and Emergency To Consulting Services (ETC Services) was selected as the most suitable respondent who could meet the necessary requirements. The services were rendered on an emergency basis at a cost of $50,106.10.
On July 29, 2024, OEU submitted an exception request seeking permission to remit payment to ETC Services for the environmental restoration services performed outside of the formal procurement process. Procurement Policy PRO-060 grants the City Manager the authority to authorize purchases greater than $50,000 without competitive bid where the purchase qualifies as an “emergency or critical purchase.” A purchase is deemed to be an “emergency or critical purchase” when following the standard procurement process will: (1) cause a disruption of essential operations; (2) interfere in the City’s ability to protect and preserve public properties; (3) cause a threat to public health, welfare or safety; or (4) create a significant loss to the City by loss of public funding, grant funding, or the loss of desirable business development. Such purchases shall be exempted from the requirements of the competitive bidding process, but competitive formal quoting should be used whenever possible. Once approved, the subject purchase must be calendared as an agenda item at the next available Council meeting.
When procured, the remediation services were necessary to prevent a threat to public health, welfare, or safety. The Procurement and Contracting Officer’s approval was necessary in order to maintain the City’s compliance with Florida Statute § 218.70, et. seq. (the “Local Government Prompt Payment Act”).
FISCAL IMPACT:
Funds were paid from 457-032-231-531-53-46010
PROCUREMENT REVIEW:
The underlying Procurement Exception request and approval are attached hereto.
LEGAL REVIEW:
N/A. The City’s standard and approved Purchase Order terms and conditions governed this purchase.
ALTERNATIVE:
• Approve with Changes
• Table
• Deny