Title
Sale of Surplus Generators (NB)
Staff recommends approval of the sale of three generators located at the Southwest Alachua Landfill.
Explanation
The City of Gainesville and Alachua County entered into an inter-local agreement for the "Landfill Gas to Energy Project" on June 29, 2001. The intent of the agreement was to allow GRU to capture landfill gas from Alachua County's Southwest Landfill which could be used to generate green energy for GRU's electric customers. To accomplish this, GRU purchased three engine generators for the site. The operation successfully produced energy for approximately four years. Beginning in 2007, the landfill gas quality and quantity diminished considerably and the equipment began to develop maintenance problems due to the minimized landfill gas fuel supply. City and County staff worked to return the project to a productive state without success.
Staff believes that the site's available landfill gas is no longer capable of producing the required capacity for energy production. Therefore, staff recommends the sale of the generators and associated equipment in an effort to recover as much of the investment as possible. Because the equipment's design is tailored for use in a landfill gas operation, the successful bidder will likely be seeking equipment for another landfill gas operation that will continue to be used to generate green energy.
Staff typically solicits bids for the sale of surplus goods, then requests City Commission approval for the sale with the list of bidders and their bid prices. However, due to the likelihood that the buyer(s) may have time considerations for completing the sale and receiving the equipment, staff is requesting authorization in advance for the sale to the highest bidder(s). The bid will be issued by GRU Purchasing following City policy and procedures for surplus sales.
Alternative sources of green power have been secured with a contract to obtain 3MW of electricity generated a...
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