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ITEM #13 <br />CITY OF COLTON <br />AGENDA REPORT <br />FOR COUNCIL MEETING OF MAY 15, 2007 <br />TO: Honorable Mayor and City Council <br />FROM: Jeannette Olko, Electric Utility General Manager <br />SUBJECT: Request approval of First Amendment to Professional Services Agreement <br />with Pennsylvania Transformer Technology, Inc. for Transformer <br />Engineering Services <br />DATE: May 9, 2007 <br />BACKGROUND: <br />On April 3, 2007, City Council approved a professional services agreement between City of Colton and <br />Pennsylvania Transformer Technology, Inc., in an amount not -to -exceed $50,000.00, for transformer <br />engineering services necessary to repair two power transformers at the Hub Substation. <br />DISCUSSION/ANALYSIS: <br />The original estimate of $50,000 was based on the damage that was known at the time; namely broken <br />seals that led to oil leaks in transformer #l. Because transformer #2 is the same make and age as <br />transformer #1, it was decided to replace the seals in transformer #2 at the same time. When the work <br />actually began, consultant and staff found components in both transformers had suffered more damage <br />than anticipated due to last summer's heat wave. The additional cost for services and material amounted <br />to $41,145.73. <br />FINANCIAL IMPACT: <br />Funds are budgeted and available in account number 520-8000-8003-2255-0592-100, Plant Operations <br />and Maintenance, Substation Division. <br />ALTERNATIVES: <br />None. <br />ENVIRONMENTAL IMPACT: <br />None <br />CONFLICT OF INTEREST: <br />Name of Company: Pennsylvania Transformer Technology, Inc. <br />President: Ravi Rahangdale <br />