REPORT TO THE CITY COUNCIL
September 22, 2016
FROM: THOMAS C. ESQUEDA, Director
Department of Public Utilities
BY: KEVIN L. NORGAARD, PE, Supervising Professional Engineer
Department of Public Utilities - Wastewater Management Division
SUBJECT
Title
Actions Pertaining to the Engineering Services to Evaluate Power Generation and Optimize Energy Credits at the Fresno/Clovis Regional Wastewater Reclamation Facility (Council District 3)
1. ***RESOLUTION - 11th amendment to the Annual Appropriation Resolution (AAR) No. 2016-118 appropriating $252,700 for engineering services to evaluate power generation and optimize energy credits at the Fresno/Clovis Regional Wastewater Reclamation Facility (Requires 5 affirmative votes)
2. Award a professional engineering services contract for $207,713 with a $25,000 contingency, to CDM Smith of Walnut Creek, California
Body
RECOMMENDATION
Staff recommends the Council appropriate funding and approve the agreement award to CDM Smith for the feasibility study to determine the most financially beneficial methods of generating electrical power and heat at the Fresno/Clovis Regional Wastewater Reclamation Facility (Facility).
EXECUTIVE SUMMARY
In FY16 the Facility consumed almost 34,000,000 kilowatt hours of electricity, purchased 329,331 therms of natural gas and produced 651,977,975 cubic feet of digester gas. The existing power generation equipment is aging and nearing the point in the lifecycle where a substantial amount of money must be spent to continue operation. Staff is interested in investigating the most financially efficient method of meeting the electricity and heat requirements for the Facility. This contract for the feasibility study will provide technical and financial reviews of the existing systems and other available technologies for the generation of the required energy.
BACKGROUND
One of the largest contributors to the operation and maintenance costs for the treatment of wastewater is the energy necessary to operate pumps and blowers (air compressors). Typically in small wastewater facilities the electricity is purchased from the power company. The Facility uses conditioned digester gas to operate a power generation facility (PGF) that was purchased second hand in the 1990’s. The PGF is nearing a point in the operational lifecycle where substantial amounts of money must be spent to extend the useful operation. In the more than thirty years since the original construction of the PGF technology has advanced to provide major efficiencies in the power generation using digester gas. If this contract is approved CDM Smith will perform a full investigation and financial analysis of the new technologies available for power generation. This work will be summarized and presented in an engineering report that will rank and prioritize the options. This analysis as is standard practice for Wastewater studies will include the “no changes” option. In addition to the technology evaluation the CDM Smith will identify credits and grant programs. These programs will be investigated for applicability and probability of successful application. This contract provides for several joint meeting with the two other consultants working on the overall project as detailed below.
Following Fresno Municipal Code Chapter 4, Article 1 and Administrative Order 6-19, the Department of Public Utilities notified in excess of one hundred consulting firms requesting a statement of qualification and project proposals. The Department received eight qualifications. Five separate consultants were interviewed on February 29, 2016. After reviewing the qualifications and information presented in the interview process it was decided to divide the overall project into three separate distinct pieces. These pieces were: the diversion of digester gas into the natural gas pipeline, the analysis of the most financially efficient technology of generating onsite electrical power, and finally the review and last the analysis of digester efficiencies and condition assessment. After reviewing all of the statement of qualifications and cost proposals, it was determined that CDM Smith was the most qualified provide the most benefit for the City for the evaluation of power generation and credit optimization. A consultant services agreement has been negotiated in the amount of $207,713 and $25,000 contingency.
ENVIRONMENTAL FINDINGS
By the definition provided in the California Environmental Quality Act Guidelines (CEQA) Guidelines Section 15378 the award of these contracts does not qualify as a “project” for the purposes of CEQA.
LOCAL PREFERENCE
Local preference was not implemented because staff believes the number of local businesses is less than three.
FISCAL IMPACT
This consultant services contract has no impact to the General Fund and is located in Council District 3. This project was not identified in the Wastewater Management Division five year capital improvement plan or current rate structure as a separate project, but was anticipated to be part of the larger “Regional Wastewater Reclamation Facilities Master Plan Update originally budgeted in FY 14. The planned outcome of this contract will be to develop a long term plan to optimize energy costs for the Facility. Funds in the amount of $252,700 are available in the Sewer Enterprise Fund 40501; the AAR is necessary to allocate the funds for the contract.
Attachments:
11th AAR No. 2016-118
Consultant Agreement
Fiscal Impact Statement
Vicinity Map