1e 250 KW Mobile GeneratorCITYOF
I City Center Ddve, PO Box I47
;hanhassen, Minnesota 55317
Phone 612,937.1900
General Fax 612.937,5739
ngineering Fax 612,937.9152
~blic Safety Fax' 612.934.2524
Feb www. ci, chanhassen, mn. us
TO:
FROM:
DATE:
Todd Gerhardt, Acting City Manager
Charles D. Folch, Public Works Director
March 12, 1999
SUBJECT:
Authorize Preparation and Specifications and Advertising for Bids
for Mobile Electric Generator - PW File: PW 016ggg(1)
The Five Year Capital Improvement Program for the Sanitary Sewer and Water
System Expansion Funds 710 incorporated with the 1999 budget identified the
need to provide standby alternative power to operate wells during an emergency
and/or primary power (NSP) system failure. Over the past couple of years, many
of the metro area communities have been upgrading their comprehensive water
policy plans. An integral part of these plans being mandated, is to identify and
outline an emergency preparedness plan for the water system. One of the common
action steps resulting from these water emergency plans is that communities are
purchasing mobile generators to be able to operate their water supply facilities
(wells) during times of primary power source (NSP) failure.
As I am sure many of the council members already are aware, the City does have
its own truck mounted generator. This unit was acquired back in 1992 as a part of
the sewer Lift Station 24 project. Due to the ultimate flow capacity that Lift
Station 24 was predicted to carry, it was deemed necessary that a back up power
source be incorporated into the facility as a protective measure. However,
deductive reasoning quickly transformed into logical thinking in that, if an
investment was needed to be made in a backup power generator for Lift Station 24
and if it was set up as a mobile unit, it could be of benefit for more lift stations
throughout the community. As such, this generator was mounted on a truck and
even though it is garaged at Lift Station 24, it has the ability to be moved as
needed to other sewer lift station locations in emergency situations.
The only short coming of this existing generator is that while it is able to operate
all the lift station pumps, it is not of a large enough capacity to be able to operate
the water supply wells, which have much larger horsepower pumps. Being able to
have a backup power source for the water supply wells is a very important
insurance policy for the City's water system, particularly in times where storm
related power outages occur, and would even be a benefit as added insurance for
the Y2K scenario.
· City ofChanhassen. A growing community with dean lakes, quality schools, a charming downtown, thriving businesses, and beautifulparks. A greatplace to live, work, andplay.
Todd Gerhardt
March 12, 1999
Page 2
The City currently has six water supply wells, five in the low pressure zone and
one in the high pressure zone. Another well is currently under construction (Well
No. 8), which will serve as the second well in the high pressure zone. Please note
that the original Well No. 1 for the City has been abandon many years ago. In the
event of a wide area primary power source failure where the water supply wells in
either the high or low pressure zones could not function, there is a potential for
loss of water storage from the reservoirs, which would greatly reduce the fire flow
protection throughout the city. Much worse, if the water is drained completely
from a watermain there is potential for an air locking situation which could cause
many sections of the pipe distribution system to collapse. While this may sound
like a doom and gloom catastrophic situation, the scenario could be realized in a
wide spread lengthy power outage situation.
Therefore, in an effort to provide a sufficient level of insurance under these
conditions, staff would recommend the acquisition of a 250 kilowatt trailer
mounted mobile generator to be able to address the emergency need. The unit
could be utilized at well locations in both the high and low pressure zones and be
able to maintain adequate water storage as well as "potable" water flow
throughout the system under emergency situations. This would insure fire flow
protection and reduce the risk of lines collapsing.
It is also important to note, that not only would this generator provide the added
measures of protection as discussed above, but it could also be used to save on
annual electric costs by functioning under a "peak shaving" program with NSP. In
fact many communities are implementing their mobile generators in this fashion.
The energy cost savings are often used to offset some of the original capital
investment. Staffhas had discussions with NSP representatives on this program
and it appears very viable for Chanhassen.
The important question to address at this point is financing. It has been estimated
that the cost to obtain this unit and contract some electrical connection work to be
performed at the wells is approximately $75,000.00. You will note from the 1999
budget commentary sheet that this item was denoted as proposed to be funded via
bond proceeds or future public improvement projects.
In going through the information gathering process with NSP, it became apparent
that the City has been paying state tax to NSP for its monthly electric charges for
the water supply wells. Apparently, legislation was passed some time ago which
provides a state tax exemption on energy costs to produce a commodity. Water is
considered a commodity and the City can be considered a wholesale producer of
water. As a result the City has recently filed the necessary exemption status paper
work with NSP and will no longer be having to pay the state tax on the energy
costs for operating the water supply wells. In addition, NSP is able to refund the
City up to forty-two months of past payments of state tax. This refund should
Todd Gerhardt
March 12, 1999
Page 3
amount to approximately $25,000.00. Since the refund is directly associated with
the energy use for water supply wells, it could be used to offset part of the capital
investment in acquiring the mobile generator.
Finally, it is important to note that timing in this matter needs to be considered. At
this point, the timeline to obtain a generator by going through the normal bid
process, awarding a contract, preparing and approving shop drawings, and a
twelve to fourteen week production period puts the delivery of this unit, if
authorized on March 22, 1999, sometime in October. Having this unit available
prior to the January 1, 2000 would be an additional measure of community
protection for the Y2K issue. It is, therefore, recommended that City Council
authorize the preparation of specifications and advertisement for bidding on a 250
kw trailer mounted mobile generator, PW File 016ggg(1)
C~
Jerry Boucher, Utility Superintendent
Chuck Warline, Bonestroo Associates
Dick Foster, Bonestroo Associates
Attachments: Commentary Page from Fund 710
g:\pw\charles\cc\Generator, doc
CITY OF CHANHASSEN
1999 BUDGET
Commentary
FIVE YEAR CAPITAL IMPROVEMENT PROGRAM
FOR THE CHANHASSEN WATER SYSTEM
Public Service Enterprise Fund
Sanitary Sewer and Water System Expansion
YEAR DESCRIPTION
ESTIMATED
COST
1999
2000
SCADA System maintenance/repair
Construct Well No. 8
Construct 1.5 MG Storage Tank ('1'H41 South of THS)
Provide standby alternative power at 2 wells
Inspect Lake Lucy Tank
Test pump Lotus well field area
Wellhead Protection Plan
General repairs
SCADA System annual maintenance
Acquire Land for Well No. 9
Design for Well No. 9
Repaint 1.5 MG Storage Tank (Lake Lucy Road)
South Lake Minnewashta watermain loop
Arboretum Business Park Phase IV
THS/W. 78th Street (Audubon to Galpin Blvd.)
General repairs
15,000
500,000 *
25,000
15,000
25,000
40,00q
,~000
60,000 *
100,000 *
200,000
350,000 ~
50,000 **
212,000 **
45,000
2001
SCADA System annual maintenance
Construct Well No. 9
THS/W. 78th Street (Galpin Blvd. to TH41)
Inspect and repair West 76th Street Tower
General repairs
15,000
600,000
340,000
40,000
45,000
2OO2
2003
SCADA System annual maintenance
Land acquisition for Well No. 10
Design for Well No. 10
TH41 (North of THS)
General repairs
A,..~ADA System annual maintenance
Construct Well No. 10
Land Acquisition for Well No. 11
General repairs
15,000
70,000
100,000
320,000
45,000
15,000
600,000
70,000
50,000
*Proposed funding via existing bond proceeds or future public improvement projects.
**Proposed funding via special assessments for public improvements
~0
2,170,000
1,03~J,000
1,040,000
550,000
735,000