Submitted By: Rusella Bowes-Johnson
presenter
Presentation By: Sean Lanier
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Department: Water & Sewer
STAFF RECOMMENDATION (Motion Ready):
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Approve additional expenditures for utility services provided by Duke Energy, Inc with an estimated annual expenditure of $135,000
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OCALA’S RELEVANT STRATEGIC GOALS:
Fiscally Sustainable, Operational Excellence
PROOF OF PUBLICATION:
N/A
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BACKGROUND:
The City of Ocala Water Resources Department utilizes Duke Energy, Inc (Duke) for electric services at lift stations, the Perry Sprayfield in Belleview, and automated meter reading (AMR) throughout the City.
FINDINGS AND CONCLUSIONS:
The City is required to pay monthly utilities for lift stations, Perry Sprayfield, and other locations with AMR for the continued use of the electricity for daily operational requirements. To date, FY22 and FY23 expenditures have totaled $85,600. Roughly $54,000 of that amount represents expenditures incurred during the period October 2022 to February 2023 due to utility rate increases. The Department anticipates that an estimated $75,600 will be spent on these utility services from March 2023 to September 2023, thereby necessitating an increase in the expenditure threshold under Contract WRS/210948 to $135,000.
FISCAL IMPACT:
Funds for the yearly operating expenses are budgeted for in account strings 455-030-300-533-53-43010, 455-030-303-535-53-43010 and 455-030-305-535-53-43010.
PROCUREMENT REVIEW:
Purchases for services from a utility whose rates are determined and controlled by a public services commission or other governmental authority, to include electricity, natural gas, water, cable and telephone services are exempted from competition under the City’s Procurement Policy.
LEGAL REVIEW:
N/A.
ALTERNATIVE:
• Approve
• Table
• Deny