Ocala - File #: 2022-1379

• File #: 2022-1379
• Type: Agenda Item
• Status: Passed
• File created: 8/18/2022
• In control: City Council
• On agenda: 9/6/2022
• Final action: 9/6/2022
• Title: Approve additional expenditures on a three-year contract for the purchase and stock of ester oil-filled single and three-phase transformers with Gresco Utility, Inc. for an increased total estimated expenditure of $7,600,000

Date	Action By	Motion	Result
9/6/2022	City Council	Approved	Pass

Submitted By: Marie Brooks
presenter
Presentation By: Doug Peebles
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Department: Electric Utility

STAFF RECOMMENDATION (Motion Ready):
title
Approve additional expenditures on a three-year contract for the purchase and stock of ester oil-filled single and three-phase transformers with Gresco Utility, Inc. for an increased total estimated expenditure of $7,600,000
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OCALA'S RELEVANT STRATEGIC GOALS:
Operational Excellence

PROOF OF PUBLICATION:
N/A

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BACKGROUND:
Transformers are used daily by the Electric Department for the repair, maintenance, and expansion of our electric system. This contract ensures that adequate inventory levels are maintained to support daily operations and increase development projects within Ocala Electric Utility (OEU) territory.
On March 17, 2020, Council approved the Agreement for Transformer Supply and Delivery Services between the City of Ocala and Gresco Supply, Inc. (Contract#: ELE/190961) with an estimated aggregate expenditure amount of $2,462,671 for the initial contract term. Current market conditions, including an average 50% pricing increase and increase in demand for transformers, has resulted in this request for an increase in contract expenditure. With current transformer shortages, long lead times and increased storm activity, warehouse staff has worked proactively in an attempt to secure excess inventory necessary to maintain adequate stock levels and anticipates $2.2 million for transformer stock through the end of the initial contract term. The City has also seen an increase in large-scale development projects. Anticipated construction work orders requiring transformers are estimated at $3 million.
Since contract inception, transformer expenditures have totaled $7,425,525.99. Staff anticipates that the City will expend an additional $200,000 to cover current and anticipated transformer purchases through the end of the initial contract term. Transformer manufacturers and suppliers will only i...