Submitted By: Brittany Craven
Department: Electric Utility 
STAFF REPORT:
title
Informational item regarding the emergency payment of the price difference for offloading and field service for transformer unit in the amount of $56,000.
end
BACKGROUND:
On March 5, 2024, City Council approved the purchase of three power transformers, spare parts, and service assembly from Virginia Transformer Corp. Two transformers were designated to replace aging infrastructure at the Airport Substation, while the third was for the Shaw Substation.
Subsequently, it was determined that an additional transformer is needed at the Water Plant Substation to support the increased load caused by substantial residential and commercial development. On June 18, 2024, City Council approved the First Amendment to the Agreement with Virginia Transformer Corp. to purchase a fourth transformer.
On February 6, 2025, in preparation for the first transformer delivery, Virginia Transformer Corp. issued a Change Request Form to Ocala Electric providing notice that the original contract estimates of $39,597 per unit for optional Field Service Testing and Assembly services had increased by $47,000 to $86,597. The Change Request Form also included an additional charge of $9,000 as an offloading fee for the first transformer due to the logistics involved in accessing the delivery location.
Having received less than ten days’ notice prior to the delivery of the first transformer unit, payment of the price difference in the amount of $56,000 was authorized by Chief Financial Officer, Janice Mitchell, on an emergency basis pursuant to Procurement Policy No. PRO-070.
Funding for the increased expenditure is budgeted in the project account detailed below.
• Water Plant Substation account #332-032-194-531-69-65010 = $56,000