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File #: 2024-0865   
Type: Agenda Item Status: Passed
File created: 2/21/2024 In control: City Council
On agenda: 3/5/2024 Final action: 3/5/2024
Title: Approve the purchase of three power transformers and one lot of spare parts from Virginia Transformer Corp. in the amount of $5,726,568
Attachments: 1. FOR COUNCIL - Agreement for Supply and Delivery of Power Transformers - Virginia Transformer Corp (ELE 240044), 2. BID TABULATION
Submitted By: Lisa M. Crouthamel
presenter
Presentation By: Doug Peebles
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Department: Electric Utility

STAFF RECOMMENDATION (Motion Ready):
title
Approve the purchase of three power transformers and one lot of spare parts from Virginia Transformer Corp. in the amount of $5,726,568
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OCALA'S RELEVANT STRATEGIC GOALS:
Operational Excellence

PROOF OF PUBLICATION:
Bid released to the public October 24, 2023

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BACKGROUND:
The Airport Substation is strategically situated in the southwest quadrant of the City's electrical infrastructure. As one of twenty distribution substations in the City's service territory, it plays a pivotal role in power distribution. At present, the Airport Substation accommodates two 69,000-volt (69kV) power transformers, both of which have been in service for 35 years and are anticipated to surpass their maximum operational lifespan by the year 2029.

These aging power transformers are responsible for converting an incoming 69kV to a lower voltage of 12,470 volts (12kV) before distributing it to end customers. Considering future load growth and in adherence to reliability planning principles, it has become imperative to replace the existing transformers with upgraded counterparts. This proactive measure will ensure sustained and enhanced operational efficiency to meet the evolving demands on the electrical system.
The third transformer will be installed at Shaw Substation to meet the future demands of the load growth in the southwest quadrant.

FINDINGS AND CONCLUSIONS:
On October 26, 2023, the City issued its Invitation to Bid (ITB) No.: ELE240044 Power Transformers 25/33.3/41.6 MVA to the public. The bid closed December 1, 2023, with three vendors submitting bids. Virginia Transformers, Corp., was found to be the lowest bidder meeting all required specifications.


FISCAL IMPACT:
Funding for the transformer purchase is budgeted in the appropriate accounts as detailed below:
Shaw Substation (1) #332-032-183-531-69-...

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