Submitted By: Brittany Craven
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Presentation By: Chad Lynch
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Department: Electric Utility
FORMAL TITLE:
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Second Amendment to Agreement with Powerserve Technologies, Inc. to Extend Delivery Deadline and Increase Contract Amount by $82,721
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OCALA’S RELEVANT STRATEGIC GOALS:
Quality of Place, Operational Excellence
PROOF OF PUBLICATION:
Invitation to Bid was released to the public on April 29, 2025.
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BACKGROUND:
On July 1, 2025, the City Council approved an agreement with Powerserve Technologies, Inc. (PSTI) for the design and furnishing of relay panels for the Dearmin and Water Plant Substations in the amount of $298,373. The project replaces aging electromechanical relays with modern microprocessor-based relays that provide faster response times, enhanced system protection and control, real-time monitoring capabilities, and compatibility with future smart grid technologies. The upgrade is a key component of Ocala Electric Utility's (OEU’s) ongoing efforts to improve system reliability, reduce maintenance requirements, and support future load growth and operational needs.
FINDINGS AND CONCLUSIONS:
During detailed engineering, equipment procurement, and project development, OEU and PSTI identified opportunities to improve project delivery and long-term system performance. The protective relays originally specified for the project are currently experiencing extended manufacturer lead times, which could adversely affect project completion. To mitigate this risk, alternative relay equipment has been identified that is available within the project timeframe and provides enhanced protection, monitoring, and operational flexibility compared to the originally specified equipment.
The proposed amendment also includes additional relay-setting and coordination services necessary to properly configure the new relays and ensure reliable operation of the upgraded substations. These services are a critical component of the project. They will help ensure that protective devices operate correctly under normal and faulty conditions, safeguarding utility infrastructure and maintaining electric system reliability.
The amendment will increase the contract amount by $82,721 and extend the project completion date from June 26 to September 30, 2026. The schedule extension provides adequate time for equipment delivery, system configuration, testing, and commissioning, helping ensure successful project implementation while minimizing operational risks. The requested changes result from detailed engineering and project execution efforts. They are intended to maintain project momentum, avoid potential delays due to equipment availability, and deliver a more reliable and capable protection system for OEU.
Accordingly, OEU is requesting approval of a second amendment to the agreement with Powerserve Technologies, Inc. in the amount of $82,721, increasing the total contract amount from $298,373 to $381,094, and extending the contract completion date to September 30, 2026.
FISCAL IMPACT:
Approval of this amendment will increase the contract amount by $82,721 for a revised total contract value of $381,094. Funding is available within the approved Ocala Electric Utility capital improvement budget account #332-032-167-531-69-65010.
PROCUREMENT REVIEW:
These goods and services were procured in compliance with the City’s procurement policy.
LEGAL REVIEW:
This Amendment will be reviewed and approved for form and legality by City Attorney, William E. Sexton.
ALTERNATIVE:
• Approve with Changes
• Table
• Deny