Submitted By: Kimberly Foster
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Presentation By: Doug Peebles
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Department: Electric Utility
STAFF RECOMMENDATION (Motion Ready):
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Adopt Budget Resolution 2024-145 amending the Fiscal Year 2023-24 budget to appropriate additional funds from the Electric Reserve for Contingencies account to support the purchase of a fourth power transformer from Virginia Transformer Corp. in the amount of $1,880,372
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OCALA'S RELEVANT STRATEGIC GOALS:
Operational Excellence
PROOF OF PUBLICATION:
Bid was released to the public October 26, 2023.
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BACKGROUND:
The City of Ocala Electric Utility (OEU) Water Plant substation is the primary distribution hub for the Northeast 36th Avenue corridor. The existing Water Plant power transformer has been in service for 38 years and will exceed its operational lifespan by 2026. Even with regular maintenance, the risk of failure increases exponentially with age, which can lead to significant power outages and impact residential and commercial customers.
In recent years, the OEU service territory has experienced substantial growth. Numerous planned residential and commercial developments are in progress which, when completed, will lead to a significant increase in OEU's load demand. A large new power facility fed from the Water Plant substation will soon be in service. OEU must upgrade the existing 30MVA transformer to a 41.6MVA transformer to accommodate the anticipated load demand increase and future growth.
FINDINGS AND CONCLUSIONS:
On October 26, 2023, the City issued Invitation to Bid (ITB) No.: ELE240044 Power Transformers 25/33.3/41.6 MVA to the public. The bid closed December 1, 2023, with three vendors submitting bids. Virginia Transformer Corp. was the lowest bidder, meeting all required specifications. On March 5, 2024, the Council approved the purchase of three transformers based on the results of this bid.
OEU is requesting the purchase of a fourth transformer on this contract. Current power ...
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