Title
A RESOLUTION 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 ST SUBSTATION; AND DECLARING AN EMERGENCY.
Brief Description: On August 13th, 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
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 request that Council authorize the City Manager to enter into a contract with Magnetech Industrial Services under the emergency clause provision of the City Charter. The proposed cost exceeds the City Manager’s contracting authority, necessitating Council approval. (See attached quote.)
According to Magnetech’s current scheduling, the estimated completion timeline is approximately eight months, which would allow the transformer to be returned to service prior to the onset of higher seasonal electrical loads. Our substations are engineered to operate under an N-1 contingency during normal conditions; however, during periods of elevated demand, the system’s capacity margin is significantly reduced. This transformer is a critical asset required to ensure the reliability and stability of the City’s electrical infrastructure. City Administration is requesting a 10% contingency for any material escalation or issues that may arise during this process $351,393.00 (base) + $35,000.00 (contingency) = $386,393.00 (total).
Timing Considerations
Effective with passage of this motion. We need to begin this work immediately following the 10-21-25 Council meeting. An emergency declaration is required, given the current status of the City’s electrical system and the need to restore it to full service as soon as possible.
Fiscal Impact
Currently Budgeted
X Supplemental Appropriation Required = $386,393.00 EMERGENCY REQUEST
Appropriation Not Required.
Recommendation
Suggested Action
The City recommends Council approve this emergency request to allow the City Manager to enter into a contract with Magnetech Industrial Services, Inc. for the repairs to the transformer at the Hudson South Main St Substation and declaring an emergency.
Submitted by,
Thomas J. Sheridan, City Manager
Kevin Powell, Public Works Director
David Griffith, Asst. Public Works Superintendent - Hudson Public Power