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CONSIDERATION OF THE DECLARATION OF EQUIPMENT AT THE WATER RECLAMATION FACILITY AS SURPLUS AND/OR OBSOLETE AND AUTHORIZATION OF THE SALE THEREOF.
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BACKGROUND: The Norman Water Reclamation Facility (WRF) installed co-generation equipment back in 1991 as a source for electrical power supply for the facility. This equipment generated approximately 300 kWh power produced by a combination of natural gas and bio-gas. Over the years the reliability of this equipment has diminished to the point it was placed out of service in 2003. The equipment has remained on site since being placed out of service. However, because new solids blending equipment is scheduled to be installed as part of the Phase II Plant Improvements Project, the space occupied by the co-generation equipment is needed to house the new equipment.
DISCUSSION: Staff is requesting that pursuant to Chapter 8, Section 8-301, City Council declare the co-generation equipment as surplus so that it may be removed and sold. Chapter 8, Section 8-301 of the Norman Code of Ordinances provides that "The City Council must declare surplus or obsolete any supplies, materials, or equipment where the valuation exceeds one thousand dollars ($1,000) prior to the selling of such supplies, materials, or equipment."
There is a potential to generate revenue from the sale of the salvaged equipment such as the Waukesha motor, electrical generation equipment and electrical wiring. City staff will remove the equipment and seek buyers for the sales transactions. Some minor parts may be scrapped because there is no potential value. Photographs of the equipment to be declared surplus are attached. Revenue generated from the sale, if any, will be transferred back to the Phase 2 Water Reclamation Facility Improvements (WW0065) via future agenda item requests.
RECOMMENDATION: It is recommended that the supplies, materials, or equipment be declared surplus or obsolete, and approved for disposition.