Title
Resolution Approving a Ten-Year Lease Agreement with Duke Energy for On-Site Power Generation Services at the North Buffalo Creek Water Reclamation Facility
Body
Department: Water Resources
Council District: 2
Public Hearing: N/A
Advertising Date/By: N/A
Contact 1 and Phone: Steven Drew, 373-7893
Contact 2 and Phone: Elijah Williams, 373-4632
PURPOSE:
The Water Reclamation Division of the Water Resources Department is requesting Council approval to enter into a lease agreement with Duke Energy for the purpose of installing and operating on-site power generation equipment at the North Buffalo Creek Water Reclamation Facility (NB) Transfer Pump Station. This station will require a full time, back-up power generation source when the treatment facility is decommissioned as part of the T.Z. Osborne Water Reclamation Facility (TZO) expansion/upgrades project.
BACKGROUND:
TZO is presently undergoing expansion/upgrades that will allow it to operate at 56 Million Gallons per Day (MGD) capacity. When TZO is able to operate at this capacity, NB will be decommissioned and converted into an equalization/transfer pumping station that will pump all influent wastewater to TZO. In doing so, the NB Transfer Station will require a constant and reliable source of back-up power in order to assure that wastewater service will continue uninterrupted. The continuous operation of these transfer pumps is critical to meeting regulatory requirements for reliability and firm pumping capacity.
A generator feasibility study was performed by Duke Energy. It was determined that one 3000 kW standby rated, 480 Volt diesel electric generator would be needed. All generator maintenance and fuel acquisition to support the use of the equipment is Duke Energy's responsibility. The terms of the lease agreement call for Duke Energy to provide on-site generation service to NB, located at 2199 White Street, Greensboro, North Carolina 27405, for a fee of $30,550 per m...
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