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L/E WWTP Biogas to Renewalable Natural Gas (RNG) Project

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L/E WWTP Biogas to Renewalable Natural Gas (RNG) Project COUNCIL COMMUNICATION TO: Mayor and Council FROM: John Kuosman DEPARTMENT: WWTP DATE: October 16, 2017 L/E WWTP Biogas to Renewalable Natural Gas (RNG) SUBJECT: Project DESCRIPTION: L/E WWTP Biogas to Renewalable Natural Gas (RNG) Project RECOMMENDATION: The Littleton / Englewood Wastewater Treatment Plant (L/E WWTP) Supervisory Committee and staff recommend that City Council approve, by motion, a professional services agreement with Carollo Engineers, Inc. to conduct the design engineering and contractor procurement services for the L/E WWTP Biogas to Renewalable Natural Gas (RNG) Project in the amount of $380,400. PREVIOUS COUNCIL ACTION: On January 3, 2017, Englewood City Council approved an award of contract to Carollo Engineers, Inc. in the amount of $61,500, to conduct a Biogas Application Feasibility Study. SUMMARY: In 2017, the Littleton/Englewood Wastewater Treatment Plant (L/E WWTP) initiated a Biogas Application Feasibility Study. The goal of the study was to evaluate collaborating with neighboring industries in order to identify a Biogas to Renewable Natural Gas (RNG) Project that would develop a renewable energy product, create a potential revenue source, and highlight the L/E WWTP as a community resource. Carollo Engineers was awarded a contract to conduct the feasibility study and included an economic analysis of various alternatives. The project alternatives investigated included: • Conversion of digester gas for onsite electrical power generation • Conversion of digester gas to compressed natural gas (CNG) for vehicle fuel • Conversion of digester gas to pipeline quality natural gas (PNG) to be injected into utility service grid Based on an analysis, a pipeline injection natural gas project is the most economical and feasible for project implementation. The project will consist of the purchase and construction of a clean-up skid to purify the digester gas to renewable natural gas quality, construction of a new gas pipeline, and construction of the interconnection equipment to the Xcel Energy pipeline grid. Recommendations for project financing including third party financing options, broker services for renewable fuel credits, and the Xcel Energy interconnection agreement are tentatively planned for January 2018. ANALYSIS: Carollo’s scope for design and procurement services will consist of: • Design of pipeline to connect existing biogas system (digester complex) to new biogas conditioning system • Sizing and specification of biogas conditioning system located adjacent to existing digester complex on slab on grade foundation • Sizing and specification of thermal oxidizing flare • Coordination of Xcel Energy interconnection requirements • Cost estimating • Procurement support for construction contractor, broker services, and Xcel Energy agreement • Third Party Financing Carollo is a nationally recognized environmental engineering firm specializing in the planning, design, and construction management of water and wastewater facilities. The firm is currently ranked within Engineering News Record’s top 15 firms for water and sewer/wastewater companies. Carollo has provided biogas engineering services for other municipalities and has the resources and knowledge to provide the services proposed. FINANCIAL IMPLICATIONS: The Biogas to Renewable Natural Gas (RNG) Project – Design Engineering and Contractor Procurement Professional Services in the amount of $380,400 will be partially allocated from existing 2017 budget availability. The approved 2017 budget for the WWTP included $1,496,000 for professional services. Through September, $406,175 of professional services have been expended to date and there is adequate funding available to fund the portion of work that will be completed in 2017. Funding for remaining work to be completed in 2018 has also been identified within the 2018 budget request. ALTERNATIVES: None identified. CONCLUSION: The Biogas to Renewable Natural Gas (RNG) Project will allow the wastewater plant to beneficially and fiscally responsibly reuse the digester gas product that is now creating significant greenhouse gas emissions. In the end, the project will allow the conversion of a wastewater product into a natural gas commodity that be leveraged to reduce the plants operating costs into the future. ATTACHMENTS: Carollo Contract Carollo Biogas Use Applications Report Biogas Presentation September 28, 2017 Supervisory Committee Meeting Minutes Cl: Engiewooci C. PROCUREMENT DIVISION PROFESSIONALSERVICES AGREEMENT Contract Nurnhnr FSAI17-26 Pipeline Injection Dulgn Services 5 380.400(not to exceed] This Professional services Agreement (the "Agreement") is made as of this 17th day of August. 2017, (the “Effective Date") by and between Carollo Engineers, inc.. a Delaware corporation ("Consultant"). and The City of Engiewood. Colorado, a municipal corporation organized under the laws ofthe State of Colorado ("City"). City desires that Consultant.from time to time. provide certain consulting services, systems integration services.data conversion services.training services.andlor related services as described herein, and Consultant desires to perfonn such services on behalf of City on the terms and conditions set forth herein. in consideration of the foregoing and the tens hereinafter set forth and other good and valuable consideration.the receipt and suf?ciency of which are hereby acknowledged. the parties hereto. intending to be legally bound.agree as follows: 1. De?nitions. The terms set forth below (b) “Work Product‘ shall mean all shall be defined as follows: patents, patent applications. inventions. designs. mask works. processes. (a) ‘intellectual Property Rights" methodologies. copyrights and copyrightable shall mean any and all (by whatever name or works. trade secrets inciuding con?dential term known or designated) tangible and Information.data. designs. manuals, training intangible and now known or hereafter existing materials and documentation. formulas. (1) rights associate with works of authorship knowledge of manufacturing processes. throughout the universe. including but not methods.prices. ?nancial and accounting data. limitedto copyrights. moral rights. and mask- products and product speci?cations and all works.(2) trademark and trade name rights other intellectual Property Rights created. and similar rights. (3) trade secret rights. (4) developed or prepared. documented and/or patents. designs, algorithms and other delivered by Consultant. pursuant to the Industrial property rights, (5) all other provision of the Services. intellectual and industrial property rights (of every kind and nature throughout the universe 2. Statements of Work. During the tenn and however designated) (including logos, hereof and subject to the tems and conditions "rental" rights and rights to remuneration). contained herein. Consultant agrees to whether arising by operation of law. contract. provide. on an as requested basis. the license.or otherwise.and (6) all registrations. consulting services. systems integration initial applications. renewals. extensions. services. data conversion services. training contlnuatlons.divisions or reissues hereof now services.and related services (the "Servlces') or hereafter in force (Including any rights in any as further described in Schedule A (the ofthe foregoing). “Statement of Work‘) for City. and in such additional Statements of Work as may be 1000 EriglemondParkway. Englewood. Colorado 80110-2373 (303) 762-2300 www.engtewoodgov.org rvs.un.:a itlixiiruwan...Brim us wim- executed by each of the parties hereto from director before proceeding with the time to time pursuant to this Agreement. Each parton-nance of the Services affected by such Statement of Work shall specify the scope of omissions or discrepancies. work, speci?cations, basis of compensation and payment schedule, estimated length of 4. invoices and Payment. Unless time required to complete each Statement of otherwise provided in a Statement of Work. Work, including the estimated startl?nish City shall pay the amounts agreed to in a dates, and other relevant infomation and shall Statement of Work within thirty (30) days incorporate all terms and conditions contained following the acceptance by City of the work in this Agreement called for In a Statement of Work by City. Acceptance procedures shall be outlined in the 3. Perfonnance of Services. Statement of Work. if City disputes all or any portion of an invoice for charges, then City (a) Psrfomtance. Consuitantshall shall pay the undisputed portion of the invoice perform the Services necessary to complete all by the due date and shall providethe following projects outlined in a Statement of Work in a notificationwith respect to the disputed portion timely and professional mariner consistent with of the invoice. City shall notify Consultant as the speci?cations, if any, set forth in the soon as possible of the speci?c amount Statement ofwork, and in accordance with the disputed and shall provide reasonable detail as prevailing engineering standard of care by to the basis for the dispute. The parties shall exercising the skill and ability ordinarily then attempt to resolve the disputed portion of required of engineers performing the same or such Invoice as soon as possible. Upon similar services in the State of Colorado. resolution of the disputed portion, City shall consultant agrees to exercise professionalism, pay to Consultant the resolved amount. and to utilize its e>¢ter1ise and creative talents in completing the projects outlined in a 5. Taxes.
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