Submitted By: Marie Brooks
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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 purchase of a 2500kVA ProLec transformer from Irby Utilities Inc. in the amount of $163,750
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OCALA'S RELEVANT STRATEGIC GOALS:
Operational Excellence
PROOF OF PUBLICATION:
N/A
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BACKGROUND:
After a competitive solicitation, the City of Ocala awarded a three-year contract (ELE/190961) for the supply and delivery of ester oil filled single and three-phase transformers to Gresco Supply Company on March 17, 2020. ELE/190961 is currently in the second and final one-year renewal term and will expire March 2, 2025. Since the City's original contract award, the marketplace has experienced volatility due to pricing increases, rising demand, transformer shortages, extended lead times, and heightened storm activity. The City of Ocala has also experienced unprecedented growth with an increase in the number of large-scale development projects requiring transformers. These factors have made it increasingly difficult for the City to acquire the transformers required to maintain adequate stock levels in a timely manner and to meet the needs of its citizens.
Ocala Electric Utility (OEU) was approached by the Ocala Metro Chamber and Economic Partnership (CEP) to confirm its capacity to support several potential large-scale developments. These developments include increasing electric service capacity at existing buildings and greenfield sites, necessitating additional electric infrastructure and capacity enhancements. These projects are scheduled to materialize within the next 12 to 24 months. Given the unpredictable transformer market and the lengthy lead times for large load transformers, it is imperative to secure the distribution of these transformers now to guarantee the City's capacity to fulfill the requirements of these economic developments. Economic developments of this type bring substantia...
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