The Harbor Springs City Council has made significant progress on its multi-million dollar electrical substation project by approving the purchase of a transformer on Monday.

The city solicited bids for the transformer, initially estimated to cost around $1.1 million. However, both bids received exceeded this estimate. Harbor Springs received bids from Virginia Transformer and Niagara Transformer. The Virginia Transformer bid came in at $1,323,270 with a lead time of up to a year and a half, while the Niagara Transformer bid was $1,279,391 but had a lead time of 3.5 to 5 years.

Given the city's goal to complete the project by 2026, the council prioritized the shorter lead time despite the higher cost. City Manager Victor Sinadinoski recommended moving forward with the Virginia Transformer purchase, citing the significant lead time difference.

"The price difference is — to me, in terms of percentage — just not enough to be concerned about when you consider the lead time difference," council member Kathy Motschall stated. "That just leads to so many questions and so many potential issues, I think. I don't see how we could wait that long. I think we have to go with the shorter term."

The council unanimously approved the Virginia Transformer purchase.

The discussions surrounding the substation project, including its location and necessity, have been ongoing for over a year. The challenges of acquiring a transformer and the associated long lead times have been a central focus of these discussions. Council member Michael Behrmann noted that the limited number of bids underscored the difficulties in securing a transformer, affirming the decision to opt for the more expensive but quicker option to stay on the anticipated project timeline.

The overall cost of the project is expected to exceed $6 million.

This approval marks a crucial step towards enhancing Harbor Springs' electrical infrastructure, ensuring the city meets its 2026 completion target.

Source: petoskeynews.com