Submitted By: Brittany Craven
Department: Electric Utility 
STAFF REPORT:
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Informational item regarding the emergency payment of the price difference for offloading and field service for transformer unit in the amount of $47,000.
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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.
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 second unit was received on May 22, 2025, and to mitigate the risk of a system deployment delay that could lead to substantial loss by the City, payment of the difference for the second unit in the amount of $47,000 was authorized on an emergency basis by Chief Financial Officer, Janice Mitchell, pursuant to Procurement Policy No. PRO-070.
Funding for the increased expenditure is budgeted in the project account detailed below.
• Airport Substation account #332-032-184-531-69-65010 at $47,000 = $47,000