Loading...
HomeMy WebLinkAbout2/6/2008 - STAFF REPORTS - 2.N. OF 4ALA S pP V v Cq<I FO RN�P' City Council Staff Report Date: FEBRUARY 6, 2008 CONSENT CALENDAR Subject: APPROVE. THE DIGESTER GAS TREATMENT SYSTEM DESIGN NOTICE TO PROCEED TO VEOLIA WATER NORTH AMERICA- WEST, LLC From: City Manager Initiated By: Director of Public Works/City Engineer SUMMARY Approval of this item will authorize Veolia Water North America-West, LLC ("Veolia") to proceed with design of the digester gas treatment system to allow the existing Internal Combustion ("IC") engines to switch to anaerobic digester gas ("ADG") from purchased natural gas. This allows fora renewable energy resource to be the engine's primary fuel and enhances local air quality. RECOMMENDATION: 1) APPROVE THE DIGESTER GAS TREATMENT SYSTEM DESIGN NOTICE TO PROCEED TO VEOLIA WATER NORTH AMERICA IN THE AMOUNT OF $74,581.10 STAFF ANALYSIS: Section 5.2(t)of the Amended and Restated Wastewater Services Agreement between the City and Veolia North America-West, LLC("Veolia")provides that Veolia shall meet and confer in order to develop an effective energy conservation plan with respect to the treatment facility. The goal was to arrive at a program to eventually result in getting off the electricity grid and significantly reduce natural gas purchases. The above has occurred and we are at the point where we can recommend proceeding to the Capital Project Phase as identified in Section 5.3 of the Agreement. The first step in this capital project is recommended to be approval of a Notice to Proceed to Veolia to do the design which will provide forthe use of Anaerobic Digester Gas(ADG) as a renewable energy resource to be the primary fuel for the existing engines that pump the waterto the trickling filters. This task is currently accomplished using electric motors or internal combustion engines run on natural gas, both of which involve expensive purchases from a public utility. The subsequent step will be the capital construction phase which will come to Council upon completion of the design. ITEM NO. � � City Council Staff Report February 6, 2008- Page 2 WWTP Digester Design NTP In addition to the obvious financial benefit of using free methane gas, the project will also enhance local air quality in two ways 1) by reducing the City's dependence on electrical generation or gas purchases thereby eliminating a proportional burning of fossil fuel and 2) removing the contaminants in the digester gas allows it to combust more completely in the engines than the gas flare currently in use. While the existing IC engine-driven equipment was originally designed to use ADG as the primary fuel, due to the gas quality issues, this equipment is currently operated using purchased natural gas. The project will design a gas treatment system to purify the ADG making it possible to use it in existing plant systems, including two internal combustion engine-driven pumps and the digester heating boiler. Over the next five years, production of ADG at the Palm Springs Wastewater Treatment Plant is projected to range from 85,000 to 110,000 cubic feet per day. Completion of the proposed project will offset the purchase of the equivalent (gas plus electricity) of approximately 120,000 therms of natural gas per year. This is estimated at $95- $100,000. Use of this renewable fuel will also reduce SO2 emissions by approximately 5 tons per year. In order to help finance this important project, City Staff has submitted COLMAC Funding Source Grant Application to Riverside County on September 26, 2007 in the amount of$95,500 for a two year period. County Staff has indicated verbally that the City will be approved for this Grant. The scope of work for this project includes complete bid-ready design for the gas pretreatment and primary treatment systems capable of treating ADG for either IC engine or fuel cell use, completed Self Generation Incentive Program (SLIP) Grant Application for combined gas treatment and fuel cell project, completed AQMD Permit Applications for both the IC engines and possible fuel cell and a final Engineer's Report, including cost estimate, for the gas treatment system. The project will be completed within 120 days from the start date specified in the Notice to Proceed. FISCAL. IMPACT: The price for this work was negotiated pursuant to Section 5.3 of the Agreement and will not exceed $70,248.18 plus a maximum contingency amount (requiring pre- approval by City Staff)in the amount of$4,332.92. Sufficient funds are available in the Wastewater Treatment Fund Account No. 420-6800-50000 (Unscheduled Capital Projects). � � David J. Barakian Troy�Butzla Director of Public Works/City Engineer (f ssist6t City Manager-Admin Services David H. Ready City Manager Di70�1� ?