FAIRHOPE, Ala. — The City Council voted Monday to delay purchase of a power transformer in order to seek bids on a remanufactured replacement unit for the one that failed recently.

“This could save us upwards of $100,000,” said Electric Superintendent Scott Sligh during a special council meeting Monday. “The rebuilt transformer will have a three-year warranty. It’s five years on the (new transformers).”

The council declared an emergency during its regular meeting last week in order to seek bids for a replacement unit without public advertisement of the bids. State law authorizes that procedure, but also requires a writing by the city setting out the nature of the emergency and reasons for bidding without public advertisement.

The city attorney said last week that, although the city did not declare the emergency in writing as the statute required, the minutes would reflect the reasons given, and the council would revisit the writing requirement during Monday’s special meeting.

At Monday’s meeting, Sligh presented a memo to the council regarding the issue.

“On Wednesday, March 18, the power transformer at the Church Street Substation caught fire and was damaged,” the March 30 memo states. “An emergency declaration is asked for due to the necessity of this substation as it relates to the grid of the electric system in Fairhope. This particular substation is crucial to the service of the downtown business district, City Hall, a school, a nursing home, and the wastewater plant, among others. Since the lead times on replacement substation equipment are generally very long, prolonging the procurement of replacement materials could endanger the public health, safety and (convenience) of our customers, citizens and the integrity of the large electric grid system.”

Sligh told the council that the option of purchasing a rebuilt one instead of a new transformer came while he was calling about renting a temporary unit.

The remanufactured transformer would be delivered immediately, Sligh said, instead of between 84 and 322 days for a new one, according to the bids received during the emergency process.

Purchasing Manager Dan Ames recommended the council delay action on those bids in order to seek a request for proposals on rebuilt transformers, and to avoid having to rebid the project if the council decided against the refurbished option.

The city received nine emergency bids for a new transformer, according to city records, ranging in price from $258,000 to $457,673.

Sligh and Ames recommended the low bid submitted by Southcon, should the council decide to purchase a new transformer.

Sligh warned that purchasing a remanufactured transformer did carry risks, even with the warranty.

“It’s hard to tell how long (the transformer) will last,” he said. “It could be six to 10 years. This is a stopgap measure, but it will give us time to develop a long-term plan.”

The remanufactured unit could be used as a spare after a new one is purchased to replace it, he said.

Councilman Lonnie Mixon asked whether the background of the company offering the remanufactured unit had been researched, stating that a three-year warranty is worthless from a company that has gone out of business.

Sligh said the three companies they had researched were not start-up companies but had a long history.

Ames said they would add a provision in the request for proposals that required a statement regarding the company’s background and references.

The council is expected to announce a special meeting in the next week or so to consider those bids on a rebuilt transformer. Special council meetings require public notice of 24 hours, according to state law.