Submitted By: Robert Whitehead
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Presentation By: Doug Peebles
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Department: Electric Utility
STAFF RECOMMENDATION (Motion Ready):
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Approve additional expenditures for field service assembly and testing services for power transformers under the agreement with Virginia Transformer in the estimated amount of $98,700
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OCALA’S RELEVANT STRATEGIC GOALS:
Fiscally Sustainable
PROOF OF PUBLICATION:
N/A
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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.
FINDINGS AND CONCLUSIONS:
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.
Ocala Electric is expecting delivery of two units at the Shaw and Airport Substations and requests approval for an increase in expenditure in the amount of $98,700, representing the price increase of the two transformer units and a five percent contingency.
FISCAL IMPACT:
Funding for the increased expenditure is budgeted in the project accounts detailed below.
• Airport Substation account #332-032-184-531-69-65010 = $47,000
• Shaw Substation account #332-032-183-531-69-65010 = $47,000
• Five percent contingencies for specialty equipment will be charged to the appropriate Substation account = $4,700
Grand Total $98,700
PROCUREMENT REVIEW:
These goods and services were procured in compliance with the City’s Procurement Policy.
LEGAL REVIEW:
The underlying Agreement has been reviewed and approved for form and legality by City Attorney, William E. Sexton.
ALTERNATIVE:
• Approve with Changes
• Table
• Deny