HomeMy WebLinkAboutAgenda Report - January 6, 1993 (52)OR
CITY OF LODI
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COUNt;IL COMMUNICATION
AGENDA TITLE: Approve Sale of Surplus Transformer -Regulator
MEETING DATE: January 6, 1993
SUBMITTED BY: Electric Utility Director
RECOMMENDED ACTION: That the City Council adopt the attached resolution
accepting the offer by U.S. Transformer, Jordan,
MN, to purchase the surplus transformer -regulator
combination at McLane Substation for $28,000 as
is and where is.
BACKGROUND INFORMATION: The replacement of the failing McLane Substation
'21 Bank transformer -regulator combination with a
new power transformer having load tap changing
equipment has been determined to be the most
economical solution. Funds for this replacement were included in the 1992-
93 fiscal year budget. The power transformer has been bid and a contract
awarded on September 16, 1992. The new unit is scheduled to arrive in
Lodi, approximately April 1, 1993.
To facilitate the replacement, the Department must have the existing
transformer -regulator combination removed from the pad at the latest by
February 1, 1993, at an estimated cost of $5,000 and have a new pad
constructed by the April 1 arrival date. It was anticipated to place the
removed transformer -regulator in storage within the substation for
subsequent sale as surplus material provided a purchaser could be located
and willing to purchase for the scrap value of $10,000-$12,000. This type
of bulky, oil -filled, heavy (90,000+ lbs.) and custom-made equipment,
particularly when in a failing mode, does not attract purchasers.
On December 1, 1992, U.S. Transformer made an inquiry to the Department to
determine if the City had any equipment for sale of a type that U.S.
Transformer currently was trying to locate. Upon learning of the specific
type, model, configuration, etc., of the equipment the City is about to
surplus, U.S. Transformer made an offer of $28,000 for the equipment, as is
and where is, including removal prior to February 1, 1993.
APPROVED: t
THOMAS A. PETERSON ecyclea pepsr
City Manager
CC-SALE/CO.COM CC -1
Approve Sale of Surplus Transformer -Regulator
January 6, 1993
Page two
The above recommendation is presented for Council's approval based on the
facts that 1) an extremely limited field of potential purchasers exist for
this type of equipment (only one known), 2) the offer substantially exceeds
the salvage value and 3) savings accrue to the City by avoiding the reloca-
tion and storage costs ($5,000) as well as future costs associated with
handling and disposal.
FUNDING: Not Applicable.
7
Henry . Rice 3
Electric Utility Director
Prepared by: Hans Hansen
Assist. Electric Utility Director
c: City Attorney
Purchasing Officer
CC-SALE/CO.COM
RESOLUTION NO. 93-09
A RESOLUTION OF THE LODI CITY COUNCIL
APPROVING THE SALE OF SURPLUS TRANSFOPMER-REGULATOR
WHEREAS, the Electric Utility Department is replacing failing
equipment, resulting in a surplus transformer -regulator combination at
McLane Substation; and
WHERE&S, U. S. Transformer, Jordan, MN has offered to purchase
said equipment for $28,000, as is and where is, including removal prior
to February 1, 1993; and
WHEREAS, 1) an extremely limited field of potential purchasers s
exist for this type of equipment (only one known), 2) the offer
substantially exceeds the salvage value and 3) savings accrue to the
city by avoiding the relocation and storage costs ($5,000) as well as ;
future costs associated with handling and disposal; r
NOW, THEREFORE, H8 IT RESOLVED that the Lodi City Council hereby
approves the sale and accepts the offer by U. S. Transformer, Jordan,
MN to purchase the surplus transformer -regulator combination at McLane
Substation for $28,000 as is and where is.
Datedt January :, 1993
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I hereby certify that Resolution No. 93-09 was passed and adopted
by the Lodi City Council in a regular meeting held January 6, 1993 by
the following vote:
Ayes: Council Members - Davenport, Mann, Sieglor_k, Snider
and Pennino (Mayor)
Noes: Council Members - None
Absent: Council Members - None
Alice M. Reimche
City Clerk
93-09
RES9309/TXTA.02J