Council action to award change order #1 to P.O. 23000978 to Solomon Corporation in the amount of $13,380.00 to cover additional costs for Transformer Repairs for the Power & Light Department. New amount of the purchase order will be $58,300.00.

IPL staff recommends approval of purchase order.

The original Purchase Order was issued to repair 2 leaking radiator gaskets. In order to replace the gaskets, 11,000 gallons of oil needed to be drained and processed. While the oil was processing the contractor, Solomon Corporation, pulled a vacuum on the drained transformer to ensure it is sealed correctly. The change order is being issued due to the fact the existing gaskets and 2 69kv transformer bushings failed under vacuum. Solomon’s field crew actually stopped work demanding a change order to continue. Once the other gaskets and 69kv transformer bushings were replaced, the transformer held vacuum, and was able to be filled back up with the 11,000 gallons of processed oil. Staff did not realize the extent of work was more than initially expected, however, this transformer is 50 years old and these problems present themselves under these conditions. A breakdown of the expenses are:

$40,030- Original Purchase Order to replace 2 failed radiator gaskets

$4,890- Original Purchase Order for Adder to re-gasket 7 additional failed radiator gaskets (failed under vacuum)

$7,885- Adder to re-gasket High Voltage (161kv) and Low Voltage (69kv) Transformer Bushings

$5,495- Adder to replace 2 failed 69kv bushings from IPL stock

Working on these older oil filled transformers can present an abundance of unforeseen problems. This 100MVA 161-69kv
Transformer is an integral piece of our Transmission Infrastructure, and we must do our due diligence to ensure the longevity of such.

To replace this piece of equipment would cost over a million dollars and a 3-5 year wait.

Solomon Corporation, the contractor providing this service, was awarded a contract for Transformer Repair-Remanufacturing in 2020.

Approval of this change order would also authorize change orders of up to 10% of the new purchase order amount.

The fiscal impact to the city totals $58,300.00. The original amount for the Transformer Repairs was $44,920.00. Funding for the Transformer Repairs was included in the fiscal year 2022-23 adopted budget, page 238, account number 6150-5312, Transmission & Distribution - Maintenance/Supplies, IPL fund 20.