Title
A RESOLUTION AUTHORIZING THE CITY MANAGER TO RECEIVE BIDS AND ENTER INTO A CONTRACT FOR THE DISPOSAL OF THE OLD EASTSIDE SUBSTATION TRANSFORMER.
Brief Description: This project involves the disposal of an existing General Electric Distribution Transformer currently located at the Eastside Substation.
Body
Legislative History
Resolution 22-66 A RESOLUTION AUTHORIZING THE CITY MANAGER TO BID AND AWARD CONTRACTS FOR THE EASTSIDE SUBSTATION TRANSFORMER REPLACEMENT PROJECT
ORC Section 721.15 (C) If the legislative authority of the municipal corporation determines that municipal personal property is not needed for public use, or is obsolete or unfit for the use for which it was acquired, and that the property has no value, the legislative authority may discard or salvage that property.
Hudson Codified Ord. §208.03 When it is determined by the officer having management or supervision of Municipal personal property having an estimated value of less than three thousand dollars ($3,000) that such property is no longer needed by his or her department, and when it is further determined that such personal property is no longer needed or useable by any other department of the City, the officer may arrange to dispose of such personal property as follows:
(a) The officer having management or supervision of such personal property shall make a bona fide effort to obtain as many written informal bids as possible in order to obtain the best sale price for any items being disposed of in this manner.
(b) In the event no bids are submitted, the officer or supervisor shall make necessary arrangements for the disposal of the equipment or property.
(c) A written report of the proposed sale or disposal shall be submitted to Council for approval prior to actual sale or disposal.
Purpose & Explanation
Bids for this task were received on May 16, 2023, as an alternate item for the Eastside Substation Transformer Replacement Project. The bids received to dispose of the used transformer were exceptionally high. Historically, disposing of the used transformer would have generated a credit to the contract due to the industrial market value of metals. That is currently not the case. Staff feels this item can be properly prepared for disposal using a qualified EPA licensed contractor and disposed of utilizing a transformer salvage company. Staff believes this plan will result in a cost neutral disposition of the used transformer and could potentially result in a credit to the project.
Legal Authority for Proposed Legislation
Pursuant to Charter Section 6.04:
Competitively bid and advertised for three consecutive weeks; bid tab attached: [Yes/No/NA])
Joint or Cooperative Purchase Program
Professional Services
X Other (use of internal resources and salvage vendors)
Fiscal Impact
Currently Budgeted (Account #, $)
Supplemental Appropriation Required (Account #, $)
X Appropriation Not Required.
Does this legislation require use of an emergency clause?
Yes [if so, explain why]
x No
Recommendation
Suggested Action
Staff recommends that the City Council approve this Resolution granting Staff permission for the disposal of a General Electric 7.5/10-megawatt distribution transformer.
Submitted by,
Thomas Sheridan, City Manager
Frank J. Comeriato, Jr., Asst City Manager-Operations
Kevin Powell, Asst. PW Director-Utilities