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HomeMy WebLinkAbout2002-06-05 City CouncilTO: FROM: DATE: SUBJECT: City of Palo Alto City Manager’s Report HONORABLE CITY COUNCIL CITY MANAGER MAY 6, 2002 DEPARTMENT: PUBLIC WORKS CMR:221:02 AUTHORIZING THE FILING OF AN APPLICATION WITH THE CALIFORNIA ENERGY COMMISSION FOR $77,250 INCENTIVE GRANT FUNDING FOR PEAK LOAD REDUCTION/ENERGY EFFICIENCY PROGRAM FOR WASTEWATER FACILITIES 4 RECOMMENDATION Staff recommends that Council approve the attached resolution requesting $77,250 incentive funding from the California Energy Commission to partially fund the Blower Replacement and Dissolved Oxygen Control Project at the Palo Alto Regional Water Quality Control Plant. DISCUSSION In response to the high electricity prices and power outages, the California Legislature passed and Governor Gray Davis signed. Assembly Bill 29X and Senate Bill 5X (April 2001). These bills provided funding to the California Energy Commission and other state agencies for grants and rebates to reduce electricity peak load demand. The Peak Load Reduction/Energy Efficiency Program for Water. & Wastewater Facilities has funding available for municipal water/wastewater facilities to implement peak load reduction and energy efficiency projects that will reduce the summer peak load. Projects completed and operational by June 1, 2003 are eligible for incentives up to $250/kW. On January 14, 2002, Council awarded a contract in the amount of $836,000 for the Blower Replacement Project to Monterey Mechanical. The Blower. Replacement Project replaces lower efficiency blowers with higher efficiency blowers and dissolved oxygen control valves, which will provide energy savings of 309 kW peak load reduction. The peak load reduction qualifies for SB 5X Incentive Grant Funding. The grant application requires Council authorization in the form of the attached resolution. RESOURCE IMPACT If the $77,250 grant is awarded, staff will return to council with a Budget Amendment Ordinance to recognize the revenue in Capital Improvement Plan Project 8021 "Equipment Replacement". CMR:221:02 .Page 1 of 2 POLICY IMPLICATIONS : The project is categorically exempt from the provisions of the California Environmental Quality Act and no further review is necessary. ATTACHMENTS Attachment A: Resolution of Council for the California Public Utilities Commission PREPARED BY: William D. Miks, Manager RWQCP GLENN S. ROBERTS Director of Public Works CITY MANAGER APPROVAL: EMILY Assistant City Manager CMR:221:02 Page 2 of 2 ATTACHMENT A RESOLUTION NO. RESOLUTION OF THE COUNCIL OF THE CITY OF pALO ALTO AUTHORIZING THE FILING OF AN APPLICATION WITH THE CALIFORNIA ENERGY COMMISSION FOR $77.,250 INCENTIVE FUNDING FOR PEAK LOAD REDUCTION/ENERGY EFFICIENCY PROGRAM FOR WASTEWATER FACILITIES WHEREAS, incentive funds are provided through Senate Bill 5X to finance projects that will reduce peak electrical demand;, and WHEREAS, the State of California critical shortage in electrical capacity; is experiencing a NOW, THEREFORE, the Council of the City of Palo Alto does RESOLVEas follows: SECTION i. The Council hereby authorizes the City Manager or his designated representatlve, the Manager of the Palo Alto Regional Water Quality Control Plant to apply for and accept a funding award with an incentive up to $77,250.00 from the California Energy Commission to make a 309kW on-peak load reduction by replacing one existing positive displacement blower with a new single-stage centrifugal blower and adding dissolved oxygen control to the. aeration system at the Palo Alto Regional Water Quality Control Plant. SECTION 2. The City Manager or his designated representative, the Manager of the Palo Alto Regional Water Quality Control Plant, is hereby authorized to execute on behalf of the City ofPalo Alto all necessary documents to effectuate the purpose of the resolution. // //. // // // // // 020416 sm 0053020 SECTION 3. The Council finds that the adoption of this resolution does not constitute a pro]ect under the California Environmental Quality Act,and therefore no environmental assessment is requlred. INTRODUCED AND PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: City Clerk APPROVED AS TO FORM: Mayor APPROVED: City Attorney City Manager Director of Administrative Services Manager of the Palo Alto Regional Water Quality Control Plant 020416 sm 0053020 2