Submitted By: Kimberly Foster
presenter
Presentation By: Doug Peebles
end
Department: Electric Utility
STAFF RECOMMENDATION (Motion Ready):
title
Adopt Budget Resolution 2024-144 to amend the Fiscal Year 2023-24 budget to appropriate funds from the electric reserve for contingency account to support the purchase of electric meters with an estimated expenditure of $375,000
end
OCALA’S RELEVANT STRATEGIC GOALS:
Fiscally Sustainable, Operational Excellence
PROOF OF PUBLICATION:
Sole source released to the public: 11/9/2022
body
BACKGROUND:
The City of Ocala Electric Utility (OEU) routinely purchases electric meters and holds them in stock at the City warehouse until needed for new construction or replacement. Meters are necessary to ensure the accurate measurement of electricity sold to residential and commercial customers. OEU anticipated and purchased additional meter inventory for planned development projects. The project pace has greatly accelerated, original cost estimates have increased, and meter demand has exceeded the initial projected operating budget.
Over the past six months, OEU has experienced a 4 percent unanticipated growth in new customer requests. This has significantly impacted the operating budget of the Advanced Metering Infrastructure (AMI) system, with the average meter costing approximately $267.
FINDINGS AND CONCLUSIONS:
On October 1, 2023, the Council approved the Fiscal Year 2023-24 budget of $545,081. Since that time, OEU received requests from multiple new large development projects to connect meters. The current demand requires additional funding of $375,000 to cover the installation of approximately 1,400 new meters, multiple current transformer installations, and the purchase of new first-article meters for the next generation of meters.
FISCAL IMPACT:
This request will appropriate additional funds for the installation of new meters. Funds will be taken from the electric reserve for contingency account #457-099-999-531-81-99800 and appropriated to 457-032-233-531-53-52010 for the new meter expense.
PROCUREMENT REVIEW:
N/A
LEGAL REVIEW:
N/A
ALTERNATIVE:
• Adopt with Changes
• Table
• Deny
BUDGET RESOLUTION 2024-144
A RESOLUTION AMENDING THE FISCAL YEAR 2023-24 BUDGET TO TRANSFER FUNDS FROM THE ELECTRIC RESERVE FOR CONTINGENCIES ACCOUNT TO SUPPORT THE EXPENDITURES FOR ELECTRIC METERS IN THE AMOUNT OF $375,000
WHEREAS, meters are a necessary ongoing operational expense to ensure accurate measurement of electricity sold to residential and commercial customers; and
WHEREAS, customer growth has surpassed projections, with numerous large development projects reaching completion ahead of anticipated schedules; and
WHEREAS, the advance metering infrastructure budget was approved on October 1, 2023, and the current demand requires additional funding of $375,000 to cover the purchase of approximately 1,400 new meters.
NOW THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OF OCALA, FLORIDA, duly assembled in regular session, that the Fiscal Year 2023-24 budget be amended as outlined below.
SOURCE:
457-099-999-531-81-99800 Reserve For Contingencies ($375,000)
USE:
457-032-233-531-53-52010 Operating Supplies - Other $375,000
This resolution adopted this ______ day of ______________________, 2024.
ATTEST: CITY OF OCALA
By: By:
Angel B. Jacobs Barry Mansfield
City Clerk President, Ocala City Council
Approved as to form and legality:
By: _________________________________
William E. Sexton
City Attorney
Reviewed for accounting accuracy & completeness:
By: _________________________________
Peter A. Lee
City Manager