The Finance Committee met 08/21/2023 and took up a number of items related to a Waste Heat to Power Project. The city would like to install two waste heat-to-power generators at the Wastewater Treatment Plant. These generators would allow them to take the methane gas that currently collects in the biogas boilers and is flared off and utilize it as a renewable electricity source for the Wastewater Treatment Plant.
The total cost of installing the generators was estimated to be $875,000. The city had been awarded various grants totaling $555,736.20. The city’s cost would only be $317,263.80. The city will be able to cover its portion of the cost with left over, unused funds from the Electrical Distribution Project.
The generators were expected to reduce electrical purchases by $44,766 per year and have an annual maintenance cost of $6,250 for a net annual savings of $38,516 per year. At that rate, the project would pay for itself in 8.2 years.
The two generators are specialty items that are only available through a company called Gulf Coast Green Energy, and so needed to be purchased through a sole source contract.
The committee voted unanimously to approve the various requests related to accepting the grants, approving the transfer of funds from the Electrical Distribution Project, and approving the sole source purchase of the generators.
I’ve prepared a transcript of the discussion for download.
Projects Manager Steve Schrage told the committee that the main grant they were awarded was a very competitive grant with quite a few applicants. Appleton was awarded the grant based on the merit of the project.
Alderperson Sheri Hartzheim (District 13) wanted to confirm that the funds that were being transferred from the Electrical Distribution project was excess money and not money that was being transfer away from an ongoing project that would now have to be put off. Mr. Schrage said that they were wrapping up the Electrical Distribution project which was expected to be completed within a month. “I don’t foresee any major issues coming up where we would need that contingency for. So, this funding should be available.”
Alderperson Hartzheim also expressed some kind of annoyance with purchasing the items as a sole source. I didn’t really understand what her concern was, so I’ll just let her speak in her own words. “And then the other, not necessarily question, but concern that I have is that there’s only one place to get these pieces, parts that we need for this project. And I appreciate that that we as a city have a rule that you have to go through a certain process for sole sourcing, but I find it maybe more just an annoyance in general than an annoyance for the city of Appleton, but I just wanted to make that clear.”
Alderperson Katie Van Zeeland (District 5) noted that the memo said that Gulf Coast Green Energy had been instrumental in helping the city receive the grants, and asked for more information about that. Mr. Schrage explained that they were the only ones who made the generators that would work for Appleton’s application. Gulf Coast was very helpful in assisting Appleton staff members quantifying the savings and output of the generators and getting the information needed to “make this work” [I took that to mean getting the information to successfully apply for the grant.]
Alderperson Van Zeeland said, “So, if I understand what you’re saying, this specific piece of equipment, there isn’t some other competitive piece of equipment that could do this for much cheaper.”
Mr. Schrage confirmed, “No, this is the only thing like it.”
The generators were expected to generate 504,087 kWh per year. Alderperson Denise Fenton (District 6) asked if that could be describe in terms people could visualize by saying how many homes that would power. Unfortunately, Mr. Schrage didn’t have an exact number, but he said he could get back to her on that.
Utilities Director Chris Shaw noted that the estimated 8.2 year payback period did not factor in demand charges. If they had successive months with no maintenance issues they would receive 20% more electrical benefit and the time it would take to pay off the cost of installing the generators would be greatly reduced.
The committee voted unanimously to approve the various items related to accepting the grant and moving forward with the project.
View full meeting details and video here: https://cityofappleton.legistar.com/MeetingDetail.aspx?ID=1110590&GUID=36FD7496-5713-41F0-B732-CF68547FACA3
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