Title
Disposal of Surplus Electric Distribution Equipment (B)
Staff recommends approval to enter into a contract with Solomon Corporation to dispose of miscellaneous surplus oil filled electric distribution equipment.
Explanation
The Energy Delivery apparatus repair group is responsible for the testing and evaluation of electric distribution equipment that is removed from service. Such equipment includes transformers, sectionalizers, reclosers, capacitors, regulators and oil switches. These units are evaluated for energy efficiency, physical and electrical condition, and useful remaining life. The equipment that passes the utility's standards are returned to inventory for future use. Units that fail to meet those standards are declared decommissioned and sold to a licensed contractor. The utility is paid a salvage value for these units based on the size of the equipment and the insulating oil contained within the units. The contractor may perform some additional testing of the equipment on the utility's behalf to ensure that the insulating oil is free from regulated contaminates. Charges for such testing and special disposal costs may offset some of the salvage value due to the utility. The units purchased by the contractor may be reconditioned and sold or disposed of as scrap at their discretion. The contractor will provide the utility with the proper legal documentation for all decommissioned units.
A Request for Quotation (RFQ) was sent to five prospective bidders for this service, with five responding. The quotes were evaluated based on the actual number of units removed from service in 2006 and the projected salvage value to be realized by the utility. A copy of the Bid Tabulation is attached for your information.
Recommendations
The City Commission: 1) declare electric distribution equipment removed from service and classified as decommissioned as surplus; and 2) authorize the General Manager, or her designee, to negotiate and e...
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