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 a one-year renewal with Gresco Supply, Inc. for transformer supply and delivery services for an estimated total expenditure of $2,000,000
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OCALA'S RELEVANT STRATEGIC GOALS:
Fiscally Sustainable, 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. It is vital that adequate transformer 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 (Contract No. ELE/190961) between the City of Ocala and Gresco Supply, Inc. ("Gresco") with an estimated aggregate expenditure amount of $2,462,671 for the initial contract term. On September 6, 2022, City Council approved an increase in total estimated expenditure for this contract to $7,600,000.
This contract is utilized for the purchase and stock of Ester oil-filled single and three-phase transformers. Due to market conditions, transformers have more than doubled in price. Ocala Electric Utility ("OEU") is experiencing an increase in demand for transformers due to a combination of new large development projects and the replacement of aging equipment on the system. Simultaneously, the electric industry has dramatically increased the overall demand for underground transformers. Many large utilities have initiated multi-year plans to underground most of their distribution infrastructure to mitigate against wildfires and significant storms. With current transformer shortages, long lead times and increased storm activity, staff has worked proactively to secure excess inventory necessary to maintain adequate stock levels resulting in a subsequent re...
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