Submitted By: Marie Brooks
presenter
Presentation By: Doug Peebles
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Department: Electric Utility
STAFF RECOMMENDATION (Motion Ready):
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Approve a one-year renewal with Gresco Supply, Inc. for transformer supply and delivery services for an estimated aggregate expenditure of $2,950,328
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OCALA'S RELEVANT STRATEGIC GOALS:
Fiscally Sustainable, Operational Excellence
PROOF OF PUBLICATION:
N/A
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BACKGROUND:
Transformers are used daily by the Electric Department for the repair, maintenance, and expansion of our electric system. Adequate transformer inventory levels must be maintained to support daily operations and development projects within the City of Ocala Electric Utility (OEU) service territory.
On March 17, 2020, Council approved the Agreement for Transformer Supply and Delivery Services, Contract No. ELE/190961, between the City of Ocala (City) and Gresco Supply, Inc. (Gresco) with an estimated aggregate expenditure amount of $2,462,671 for the initial three-year contract term.
Council approved the expenditure of additional funds under Contract No. ELE/190961 on September 6, 2022, and September 5, 2023. The first of two available one-year renewal terms was exercised and approved by Council on March 7, 2023. This renewal term will expire on March 2, 2024.
FINDINGS AND CONCLUSIONS:
Suppliers prioritize new transformer purchases based on existing contracts held by purchasing entities. Gresco proposed enhancing its buying power by committing to supplying Ocala with 25 single-phase pad mount transformers monthly until supply chain challenges are resolved. This proposal involves a temporary 20 percent price increase from the quarterly pricing (see attached pricing list) but grants suppliers the ability to secure purchase power with manufacturers.
Contract No. ELE/190961 is utilized for the purchase and stock of Ester oil-filled single and three-phase transformers. Commodity shortages and manufacturing limits have more than double...
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