Overview of Potential Comprehensive Energy Project

Study Session - Agenda Item No. 3.a.

Board of Directors

Special Meeting

August 5, 2020

Purpose

Present a potential Comprehensive

Energy Project and describe how it can

be delivered to further the Board’s

Strategic Goals with fiscal responsibility

Presentation Outline

How We Got Started

Comprehensive Energy Project

Project Scope and Benefits

Strategic Plan Goals

Project Delivery Method

Energy Services Company-Engie

Additional Benefits to the Community

How do We Pay for it?

Next Steps

How We Got Started

History of Environmental Initiatives

Carbon Neutral/Negative Organization

Climate Action Plan

GHG Baseline

Solar Energy System PPA

Co-Gen Analysis

Contracted with Engie for evaluation of a

potential comprehensive energy project

Comprehensive Energy Project

District issued an RFP under GC 4217

Co-Gen analysis

Contract with Engie

investigate a Comprehensive Energy Project (CEP)

investment grade audit

Design and Engineering

District project discretion

Government Code 4217

GC 4217 allows for a direct award of

public construction

Created to spur action

Requires savings pay for the project

Governments may contribute funds

Where we are……

Engie has completed engineering and technical

review

Numerous Engie/Staff meetings

Kenwood Energy retained

Engie has provided preliminary project cost and

scope numbers

Staff requested project elements for Digester

replacements and EQ basin capacity

Project Specifics and Benefits

Solar arrays at three lift stations, Hilltop

offices and the treatment plant site

Reduced Energy Consumption

Treatment Plant Upgrades - vast improvement

to treatment plant reliability

Eliminates use of the sludge lagoons greatly

reducing GHC emissions

Makes land available for added wet weather

storm water equalization and SSO reduction

Project Specifics and Benefits

(Continued)

Thermal drying (removing water content) of

digested sludge to 80 – 90 % solids could reduce

sludge hauling from 600 truck loads to an

estimated 150 - 200 loads per year

Heat is generated and captured from co-gen at

no cost

Avoided costs of conducting engineering

assessment and repairs to the vast sludge lagoon

system

Co-dewatering, drying and hauling of the City of

Richmond’s sludge and biosolids will create a

significant revenue stream and cost offset

Plant Process Before Project

Plant Process After Project

Expanded Project Scope

Influent Pumps Upgrade

New Grit Separation System

Solids Concentration of Digester Feed

Redundant Rotary Drum Thickeners

New Efficient Aeration Blowers

Reciprocating Engine Co-Generation System

Digested Sludge Dewatering

Thermal Sludge Dryer System

New Digesters, Including Heating & Mixing Systems

Equalization Basins

Solar - 57 kW at the District Office

Solar - 27 kW at Atlas Road Pump Station

Solar - 61 kW at Lakeside Pump Station

Solar - 136 kW at Tara Hills Pump Station

Solar - 849 kW at Wastewater Treatment Plant

Electric Vehicle Charging Stations

LED Lighting Upgrades - District Office

LED Lighting Upgrades - WWTP

Treatment Plant Impacts

Process Overview (From 3D Model)

Additional Project Benefits

Accelerating CIP

Additional project delivery bandwidth

Reduced Carbon Footprint

Energy efficiency and clean generation at Plant, Hilltop and Lift Stations

EV charging availability

Improved Regulatory Compliance

Increased EQ storage

Improved Plant Reliability

Higher Quality Biosolids

Reduced Air Emissions

Strategic Plan Goals

Goal 1: (Infrastructure Strategy & Performance)

Grit separation system

Rotary Drum Thickener

Efficient blowers

Digested sludge dewatering

Digester improvements

VFD and pump replacements

Goal 2: (Environmental Stewardship)

Thermal sludge drying system

Solar array at the Plant

Co-generation facility

Lighting efficient improvements

EQ Basin expansion

Goal 3 (Financial Viability)

Comprehensive Energy Project

Project Delivery Method If the Board eventually approves a project, Engie will

Receive a direct award

Provide full financial disclosure and project costs and profits

Provide the financial analysis necessary to prove savings cash

flow

Details of the bidding process for subcontractors as requested

Design, construct and commission all project elements

Streamline design and construction process

Basically no change orders as Engie is designer and builder

Provide warranties and guarantees appropriate to the final

project scope

One team from initiation to start up

Provide GHG and Energy savings calculations

ENGIE Project Team

Why ENGIE?

46 years of experience

Strong local

references: Contra

Costa County

Community College,

Contra Costa County,

Contra Costa County

Fire Protection District

and more

Project managed from

our corporate

headquarters in

Oakland, CA

Community impact Workforce development &

internship program

Community engagement

Ribbon cutting events

Press releases

Local project team and

local subcontractors

Local, in-house

Operations and

Maintenance

capabilities

More technical

resources than any

other company in

California

180+ personnel

dedicated to public

sector in CA alone

Project expertise WWTP expertise

Over 300 MW of solar

installed in California

#1 Provider of energy

services in the world

200-year company

history

Annual revenue of $68

billion

Credit rating of A-/A2

Achieved 109% of

guaranteed savings

Volume procurement

through vendor

competition

No Cost Investment

Grade Audit

ENGIE California Projects

Operational Excellence

Design-build delivery method using CA Government Code Section 4217

District has more control over scope of work, equipment and

subcontractor selection

Flexibility and choice

Vendor agnostic

Competitive procurement process

Focus on operational excellence and quality control

Core project team sees project from start to finish

Full time on-site ENGIE Construction Manager

Committed to hiring local labor and complying with PLA

Workforce Development: Inspiring

the Next Generation Comprehensive Internship Program

Interns recruited from local college campuses

Virtual or In-Person experiences

Recruited from a variety of disciplines and fields of study

Connections with ENGIE Women In Networking Employee Resource Group

Curriculum Integration with Local Campuses

Custom-designed classroom presentations (virtual or in-person)

Career Profiles include Women in STEM

High School Field Trip Experiences

Highlights careers in Wastewater industry

Cultivates connections to post-secondary education or work-based learning in relevant fields

CivicSpark Fellowship

Provides greater capacity for workforce development efforts and programs

Recruited from local college campuses

“Alex has entered the past four

years of lift station and

wastewater plant data into a

complex spreadsheet. This has

allowed us to analyze the flow

trends with dry weather

conditions vs. storm events and

how the flows correlate with

rainfall and lake levels. This data

has allowed us to determine the

areas most affected by I&I so we

can begin to further investigate

and plan mitigation efforts which

will in turn lead to greater

capacity.” A quote from Paul

Harris, Utilities Supervisor, City of

Lakeport

Additional Benefits to the

Community

Local Hire elements (Project Labor Agreement)

Apprenticeship opportunities from the project

Target women's resource centers on campus and

other groups that are under represented in the

industry

Reduced air emissions and odor

Fiscal Impact

-

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041

20 Year Financial Forecast

Net Operating Revenue Debt Service w/Engie Project

Next Steps

Finalize the Project Scope

Peer review of final project proposal

Review and negotiatiate any changes to the Agreement

Develop financing plan

Return to the Board with final project proposal and cost projections

Finalize a Project Labor Agreement

Request Board approval for entering into an Agreement

Questions?