CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
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Approve the award of Change Order #1 to Contract 18-036, Edward Substation Transformer, to Niagara Transformer Corporation for an amount not to exceed $298,612 and a total award of $1,500,684 plus 3% contingency
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DEPARTMENT: Electric Utility
SUBMITTED BY: Lucille Podlesny, Director
BOARD/COMMISSION REVIEW:
N/A
BACKGROUND:
The existing Edward Hospital Substation was commissioned in 2004 and consists of two 7.5MVA transformers and an indoor switchgear located in a prefabricated control house. Due to increasing load and various campus improvement projects, the hospital requested a capacity increase in 2015 and began funding the project to install two additional transformers and a control house in 2016.
The City Council awarded Contract 18-036 to Niagara Transformer on April 3, 2018 to supply two transformers for the project. The transformers were completed in early 2020 and the transformers are awaiting shipment to Naperville.
DISCUSSION:
This change order is required as Edward Hospital submitted a written request to postpone the substation expansion for up to five years. As a result of postponement, additional expenses will be incurred such as climate-controlled storage, monitoring of the transformers, and routine unit maintenance.
Contract 18-036 included a five-year warranty on the transformers, and by using Niagara to store and monitor these units, the five-year warranty period will commence upon delivery.
FISCAL IMPACT:
CIP#: EU085
Edward Substation Transformers are expensed to the Infrastructure account listed below. This work is related to EU085, Edward Hospital Substation Capacity Expansion, of which $1,000,000 was budgeted for in 2021. The requested change order is within the budgeted amount for this expense and has been paid by Edward Hospital.
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Account Number |
Fund Description |
Total Budget Amount |
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40251300-551502 |
Electric Utility |
$10,770,000 |
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