Explanation
1. BACKGROUND
This ordinance authorizes the Director of Public Utilities to enter into a construction contract with Kokosing Industrial, Inc., via the City’s Invitation for Bid process for the Southerly Waste Water Treatment Plant (SWWTP) Organics Receiving and Bioenergy Utilization Facility project, CIP #650353-100007, in an amount up to $443,275,000.00; and to encumber funds with the Department of Public Service for construction prevailing wage services in an amount up to $2,000.00, for a total expenditure of $443,277,000.00.
This project will provide the Southerly Wastewater Treatment Plant (SWWTP) with an upgraded biosolids digestion system and a cogeneration facility. The upgraded digestion system includes the construction of two three-million gallon digesters, an extension of Tunnel C, and a new digester control building (DC5). Six of the existing digesters will be upgraded with concrete covers to address fugitive methane issues. To increase the amount of biogas generated by the digesters, a new fats, oils, and grease (FOG) digester is planned to be constructed. A new cogeneration facility will be built to create heat and electricity from the digester biogas. This facility includes a previously purchased gas cleaning system. The cogeneration engines will require the construction of a new Northwest Switching Station (NWSS).
This project plans to take advantage of the Inflation Reduction Act (IRA) rebate being offered to energy communities and municipalities. Under the available IRS guidance, the City of Columbus will be eligible for a rebate up to 50% of the construction cost. According to our current construction cost estimate, this project would be eligible for approximately $120 million in rebates. To obtain this rebate, the project had to meet what the IRS called the “Beginning of Construction” deadline of December 31, 2024. The project must either have had 5% of the construction cost paid to the Contractor by then or must have had...
Click here for full text