TO: AC Transit Board of Directors
FROM: Michael A. Hursh, General Manager/Chief Executive Officer
SUBJECT: Stationary Solid Oxide Fuel Cell Performance Assurance Plan Contract Extension
ACTION ITEM
AGENDA PLANNING REQUEST: ?
RECOMMENDED ACTION(S):
Title
Consider authorizing the General Manager to exercise a one-year option to extend AC Transit's Performance Assurance Plan contract for the stationary solid oxide fuel cell (SOFC) system at Seminary Division 4.
Staff Contact:
Salvador Llamas, Chief Operating Officer
Body
STRATEGIC IMPORTANCE:
Goal - Safe and Secure Operations
Initiative - Financial Efficiency and Revenue Maximization
The stationary system produces constant power for the maintenance and transportation buildings to sustain current operations and keeps the Seminary Division from relying on power from the Pacific, Gas and Electric (PG&E) grid.
BUDGETARY/FISCAL IMPACT:
The Performance Assurance Plan's renewal will be funded utilizing District operating funds in the amount of $222,870 and ensuring the power generating system continues to operate at an efficiency above 80% rated output.
BACKGROUND/RATIONALE:
In 2013 the District commissioned a 420 kW SOFC at the Seminary Division. The project was funded utilizing the Federal Transit Administration (FTA) Transit Investment for Greenhouse Gas and Energy Reduction (TIGGER) grant to provide distributed power and net metering to the entire Seminary Division. On the original installation agreement, the District prepaid for 10 years of the Performance Assurance Plan which has provided reliable energy as an alternative to the grid. The current agreement is expiring on May 25, 2023, and has option years through 2033.
The Performance Assurance Plan provides coverage in the following five areas: Monitoring and reporting, system maintenance, performance guarantee, system warranty and repairs, and security. The plan assists the District in staying compliant with our Transit Asset Manage...
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