HomeMy WebLinkAbout02/10/1997Council Work Session
February 10, 1997
5:30 p.m.
Large Conference Room
Members present: Mayor Rooff, Jordan, Mollenhoff, Getty, Anders, Murphy.
Members absent: Krizek.
Moved by Jordan, seconded by Murphy to approve the agenda as proposed. Ayes: Five.
Absent: Collier, Krizek. Motion carried.
Administrative Director Bob Stevenson provided the council with the technical energy
analysis report for producing methane gas from the Northeast Anaerobic Lagoon. It is
estimated that 3,000 cubic feet of methane could be produced daily and City vehicles are
estimated to use 500 cubic feet per day. This preliminary report will be reviewed and
discussed by the partnering committee next with a recommendation returned to council
for final approval.
Bob Bamsey, RUST Environment and Infrastructure, reported that in 1993 when the
lagoon went on line we knew there would be energy dollars available to convert the use
of methane as an alternative fuel source. Since the use of methane has been researched
the City has seen a cut in rates from MidAmerican Energy, it is unknown if there is a
direct relationship but it seems to have helped the city already.
Jim Hagley, RUST Environment and Infrastructure, explained the material provided in
the technical analysis. A table showing current biogas production and projected future
production was reviewed. The energy gas currently produced at the lagoon is seventy-
four percent methane gas by comparison natural gas is ninety-five percent methane.
Currently the methane produced by the lagoon is being flared off..
The technical analysis indicates that the recommended process would be to compress the
gas, clean it, dry it to remove moisture, and compress it again into a storage tank. The
final storage tank could be used to fill vehicles directly.
The estimated cost to convert vehicles to methane gas is $4,200 installed. This includes a
tank and carburetor change. It also allows for two power sources by leaving the gasoline
fuel source intact. Calculations were made on the best possible uses of the gas.
Converting the eighty vehicles for city use and MET buses will use approximately
seventeen percent of available fuel, leaving the rest to be sold off to MidAmerican.
The optimum use of the fuel would be to convert a total of three hundred seventy
vehicles so that eighty percent of the available gas is used for vehicle fuel and any
remaining could be sold.
Another comparative analysis was done for the cost to clean the fuel and sell all of it to
the utility.
The payback period analysis is based on the assumption that the city will be completely
funding the project. Alternative lA is the recommended alternative and provides a
payback within a nine year period. The estimated five million dollar cost for biogas
recovery processes is eligible for Federal EPA funds under our current grant. This would
require a 45/55 city/federal funding participation. However it is felt that there are other
federal programs which would be more promising and the city's match could be as low as
twenty percent.
There currently is federal legislation to require ten percent of vehicle fleets to use
alternative fuel sources by the year 2010. MidAmerican Energy is projecting that by 1999
thirty percent of their fleet will use alternative fuel and ninety percent will be converted
by the year 2000.
Collier now present at 5:55 p.m.
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