It is recommended that the City Council declare nine (9) used electric distribution transformers as surplus, non operational or scrap equipment. Authorize staff to dispose of the surplus items via the City's online auction platform, in accordance with the Purchasing Policy B-30, Section 18-102 as stated:
Section 18-102 Disposal of Surplus City Property
(1) The method used by departments to dispose of Surplus City Property must be approved and coordinated with the City Purchasing Officer. Internal reuse of Surplus City Property by City departments is the preferred method of disposal.
(2) Disposition Methods – Surplus City Property shall be disposed of in one of the following preferred methods:
- a. Internal transfer to a claiming department;
b. Sale by City Purchasing Officer;
c. Documented donation of technology and related equipment with a fair market value less than $5,000 per lot to the Department of Education and non-profit organizations;
d. Auction (material value);
e. Recycling; and
f. Waste.
The Banning Electric Department is requesting authority to sell nine (9) electric distribution transformers through the City's online auction platform. The items are identified as scrap/non-working and are to be auctioned as surplus. These 9 transformers are the equipment the public sees on utility poles and sitting on pads in the Right of Way. They have served residential and commercial uses in the City and have reached their end of life and are no longer operational.
Staff evaluated the condition and usability of the transformers and have deemed them used, non-working and scrap. Retaining them provides no operational value; repair or refurbishment is not economically relative to replacement, and the units are obsolete for current system needs. Auctioning the transformers as surplus allows recovery of value and reduces yard/storage congestion. Disposal through competitive public auction complies with the City's Purchasing Policy B-30 by ensuring transparency and best value.
Prior to pickup, the Electric Department will ensure that all oil handling, labeling, and manifests conform to federal/state requirements. Any remaining fluids will be managed per standard utility procedures, and buyers will be advised that items are sold strictly as is, where is, non-operational scrap.
Proceeds from the auction will be deposited into the City’s Electric Fund or other appropriate fund based on original asset assignment.