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3B Public Hearing 2008 0915
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3B Public Hearing 2008 0915
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9/12/2008 9:50:19 AM
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CM City Clerk-City Council
CM City Clerk-City Council - Document Type
Staff Report
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9/15/2008
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_CC Agenda 2008 0915
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\City Clerk\City Council\Agenda Packets\2008\Packet 2008 0915
Reso 2008-114
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\City Clerk\City Council\Resolutions\2008
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hence the term co-generation. The result is a significant reduction in the electrical energy <br />purchased for the WPCP and a reduction of greenhouse gas emissions. <br />In 2005, Public Works Services began exploring the potential of a co-generation facility at the <br />WPCP. Initial discussions with companies that could design, build and operate such facilities <br />were conducted. In 2007, a Request for Proposal to formally solicit proposals from qualified <br />firms for the procurement of a co-generation facility was issued. The goal of the request was to <br />provide a "turn-key" system that: 1) would be cost effective; 2) would be reliable; 3) would <br />provide the City with economic safeguards; 4) would be environmentally responsible; and 5) <br />would take advantage of available rebate programs. <br />Three proposals were received. After a series of interviews, Siemens Building Technologies, <br />Inc. was selected as the preferred provider. In November 2007, the City entered into an <br />agreement to study in detail the feasibility of a co-generation facility and develop a technical <br />program and fiscal model that formed the basis of this proposed agreement. <br />Analysis <br />The proposed facility features three major components: 1) three 110-kilowatt internal <br />combustion (IC) generators producing a nominal 285-kilowatt of continual electrical energy, <br />which represents the continuous power required by the WPCP; 2) a conditioning facility that <br />takes the methane gas from the digester process and cleans it for use by the generators; and 3) a <br />grease receiving station that will accept additional waste grease from commercial waste haulers <br />to enhance the digester process and increase methane gas production. The project is estimated to <br />reduce the cost of electrical energy purchased from PG&E by 60%, while reducing C02 <br />emissions by three million tons per year. <br />After Siemens' preliminary analysis, it was determined that the current waste stream will not <br />produce sufficient digester gas to supply the optimally-sized electrical generators. The solution <br />is to add a grease receiving station at the WPCP. This station will use waste grease from <br />commercial disposers to the digester process to enhance gas production. Additional benefits of <br />this process will be increased efficiency of the digester process and a revenue stream based on <br />fees charged for grease disposal. Currently, staff is working on a long term agreement with large <br />grease haulers to provide the City with approximately 21,000 gallons of waste grease each week. <br />This project will be constructed under Government Code section 4217 et seq., which authorizes a <br />public agency to construct an energy conservation facility after the issuance of request for <br />proposals. <br />The new facility will be operated by WPCP staff and maintained by Siemens as part of a 15-year <br />maintenance plan. Siemens will be responsible for providing all regularly scheduled <br />maintenance and unscheduled repairs and will guarantee a minimum uptime of 91 %. As part of <br />the Performance Assurance provisions in the agreement, the City will be reimbursed by Siemens <br />for the cost of providing supplemental electrical energy if minimums are not achieved. <br />
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