Title
A RESOLUTION AMENDING RESOLUTION 25-159 AUTHORIZING THE CITY MANAGER TO ENTER INTO AN EMERGENCY AGREEMENT WITH MAGNETECH INDUSTRIAL SERVICES, INC. FOR THE REPAIR OF A 12.47 KV TRANSFORMER AT THE CITY’S SOUTH MAIN STREET SUBSTATION.
Brief Description: On August 13th, 2025 the City of Hudson experienced a significant lightning storm in the vicinity of the South Main Street Substation, resulting in damage to one of the substation transformers. Magnetech Industrial Services was engaged to perform the removal, disassembly, and evaluation of the affected transformer.
Body
Legislative History
Res: 25-125 A resolution authorizing the City Manager to enter into an emergency agreement with Magnetech Industrial Services for the inspection and diagnosis of a 12.47KV transformer
Res: 25-159 A resolution authorizing the City Manager to enter into an emergency agreement with Magnetech Industrial Services Inc. for the repairs of a 12.47 KV transformer.
Purpose & Explanation
Staff received a detailed analysis outlining the condition of the transformer. The presence of copper debris throughout the unit prompted a full disassembly for comprehensive inspection. Upon opening the unit, it became evident that the internal coils had failed due to a severe incident. Given the extent of the damage to the internal components, the only viable course of action is a complete rebuild and reassembly of the transformer.
Following a comprehensive inspection, Magnetech Industrial Services submitted a report detailing their findings along with a cost estimate of $351,393.00 for the necessary transformer repairs.
Given the projected timeline, we respectfully requested that Council authorize the City Manager to enter into a contract with Magnetech Industrial Services under the emergency clause provision of the City Charter.
Upon approval of Resolution 25-159, staff notified Magnetech to proceed with the repairs as outlined in their quotation. As the repair process began, materials were ordered in advance to ensure availability when needed. During the ordering process for the winding and insulation materials quoted from domestic vendors, Magnetech was informed that these suppliers were not accepting new orders.
Because there are very few domestic manufacturers for these specialized materials, Magnetech was required to pursue foreign sources. This resulted in additional cost impacts related to tariffs, increased shipping expenses, and higher material costs. The original quotation of $351,393.00 has been revised to $534,400.28, reflecting an overall increase of $183,007.28.
Fortunately, staff submitted the damage and the repair quotation to our insurance carrier as a claim early in the process. The claim was approved at the original quoted amount and subsequently approved again for the revised, higher quotation.
Timing Considerations
None. The repairs to this unit are expected to be completed in later September 2026.
Fiscal Impact
Currently Budgeted
Supplemental Appropriation Required
X Appropriation Not Required.
Recommendation
Suggested Action
Staff recommends Council approve this resolution amending resolution 25-159 increasing the approved amount from $386,393 ($351,393.00 + $35,000.00 10% contingency) to $561,120.28 ($534,400.28 + $26,720.00 5% contingency)
Submitted by,
Thomas J. Sheridan, City Manager
Kevin Powell, Public Works Director
David Griffith, Asst. Public Works Superintendent - Hudson Public Power