Submitted By: Lisa M. Crouthamel
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Presentation By: Doug Peebles
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Department: Electric Utility
STAFF RECOMMENDATION (Motion Ready):
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Approve the pricing amendment and final two-year renewal of the piggyback/cooperative purchasing agreement between the City of Ocala and Osmose Utility Services, Inc. for utility wood pole inspection and treatment with an aggregate expenditure of $400,000
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OCALA'S RELEVANT STRATEGIC GOALS:
Operational Excellence
PROOF OF PUBLICATION:
N/A
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BACKGROUND:
Ocala Electric Utility has an ongoing need for wood pole inspection and groundline treatment services. In 2007, the City of Ocala implemented its Wood Pole Inspection and Treatment Program (the "Program") in response to Florida Public Service Commission rules on utility storm hardening. Regular inspections and treatment under the Program stop and/or prevent wood pole decay and helps wood poles to retain design strength as they age. The Program increases the useful life of the City's wood poles thereby reducing system maintenance costs and increasing system reliability.
Under the Program, Ocala Electric Utility will inspect and treat approximately 36,000 wood poles over an eight-year period. It is estimated that through the Program, the City of Ocala is able to defer approximately $500,000 annually in pole replacement costs.
FINDINGS AND CONCLUSIONS:
After a competitive solicitation process, Gainesville Regional Utility ("GRU") awarded GRU Contract No. 2016-038 for wood pole inspection and ground line treatment services to Osmose Utilities Services, Inc. ("Osmose") on October 1, 2016 for a term of four (4) years through and including September 30, 2020.
On February 7, 2017, after evaluation of GRU's wood pole inspection and ground line treatment solicitation and the bid offered by Osmose in response, Procurement staff determined that the use of an intergovernmental cooperative purchasing method would maximize best value to the City and the ...
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