TRANSMITTAL LETTER FOR BOARD MEETING OF NOVEMBER 5, 2015
COMMITTEE ON PROCUREMENT
Mr. David St. Pierre, Executive Director
Title
Report on negotiations to enter into agreements with Anaergia Services, LLC for professional engineering services and for the long-term supply of organic waste material for 13-RFP-06 Biogas Renewable Energy Project at the Calumet Water Reclamation Plant
Body
Dear Sir:
On September 4, 2014, the Board of Commissioners authorized District staff to negotiate agreements with Anaergia Services, LLC (Anaergia) for professional engineering services and for the long-term supply of organic waste material for 13-RFP-06 Biogas Renewable Energy Project at the Calumet Water Reclamation Plant (WRP), advertised March 13, 2013. The details of the negotiated design, long-term supply, construction and maintenance agreements were to be brought to the Board for authorization prior to execution.
In conformance with this authorization by the Board, District staff has been in communication with Anaergia to develop the specific terms of an agreement for professional engineering services and for the long-term supply of organic waste material to the Calumet WRP in accordance with the details of Anaergia’s written proposal. Anaergia’s proposal involved supply of the organic fraction of wet commercial waste, generated off-site at a solid waste transfer station using an extrusion press, and further processed on the Calumet WRP site with polishing units. After lengthy discussions, both parties have determined that such an arrangement would not be in the best financial interest of either party. Therefore, the District and Anaergia have agreed to end negotiations for development of the four agreements described above.
District staff will report to the Board on a revised plan for obtaining organic waste material for increasing digester gas production and producing renewable energy at the Calumet WRP in a separate letter.
Requested, Catherine A. O’Connor, Director of Engineering, CAO:TK
Respectfully Submitted, Darlene A. LoCascio, Director of Procurement and Materials Management