Title
A RESOLUTION AUTHORIZING THE CITY MANAGER TO ENTER INTO AN EMERGENCY AGREEMENT WITH MAGNETECH INDUSTRIAL SERVICES, INC. FOR THE INSPECTION AND DIAGNOSIS OF A 12.47 KV TRANSFORMER AT THE CITY’S SOUTHSIDE SUBSTATION; AND DECLARING AN EMERGENCY.
Brief Description: On August 13th, the City of Hudson experienced a substantial lightning storm in the area of our Southside Substation. The storm tripped one of our main transformers at the substation. The transformer has been out of service since August 13th. The transformer was tested after the storm, and it was determined that the transformer cannot be re-energized. The distribution circuit that this transformer served was transferred to another substation, and the system is still being supplied from that location, which reduces the reliability of our system.
Body
Legislative History
None.
Purpose & Explanation
In order to diagnose the issues inside the large transformer (Transformer: Weight: 56,000 pounds; Size:10 ft x 11 ft. x 8 ft.), the unit will need to be removed from the site by a crane, transported to the vendor's location where they will remove the outer portions of the transformer in order to diagnosis the internal components and inspect the damages. They will provide a report of their findings and a cost estimate on the repairs at a later date, when their inspection is complete. The repair cost will most likely be in excess of $100,000 based on our staff’s experience in the past with these types of issues and repairs. If the report states that the transformer cannot be repaired, a new transformer will cost over a million dollars.
To diagnose this in a timely manner, we are requesting that the Council authorize the City Manager to contract with Magnetech Industrial Services for diagnosis and inspection work under an emergency clause, as per the City Charter. The cost of the inspection is above the City Manager’s limit at $33,728.00. (See attached quote). The City only received one (1) proposal for the inspection and diagnosis work over the past 2 weeks. The other vendor that performs this type of work is OTC, and they did not reply with a proposal as of August 24th.
Fortunately, Magnetech has informed us that they have time in their schedule after Labor Day to begin this work immediately, and the administration hopes to have the final report in September on the condition of the transformer and the list of repairs.
We will return to City Council at a future date on the repair work.
Timing Considerations
Effective with passage of this motion. We need to begin this work immediately following the 9-2-25 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 = $35,000 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 inspection and diagnosis of the transformer at the Hudson Southside 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