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HomeMy WebLinkAbout2002-11-12 City CouncilCity of Palo Alto TO: FROM: DATE: HONORABLE CITY COUNCIL CITY MANAGER NOVEMBER 12, 2002 DEPARTMENT: UTILITIES CMR:430:02 SUBJECT:APPROVAL OF A RESOLUTION ACCEPTING A $70,000 GRANT FROM THE STATE OF CALIFORNIA TO EXPAND THE ELECTRICAL LOAD CURTAILMENT CAPABILITY IN CITY FACILITIES REPORT IN BRIEF RECOMMENDATION Staff recommends that Council approve the attached Resolution approving and authorizing the acceptance of a grant of $70,000 from the State of California for additional load curtailment capability. Provided through SB 5X legislation and distributed to the member utilities of the Northern California Power Agency (NCPA), these funds will be used to expand the ability of City facilities to curtail electric demand by an additional 45 kW. This load curtailment, ability would be used during electric supply emergencies and will not affect the City’s ability to provide services to the public. By reducing electric demand during peak hours, the City joins the efforts of all Utilities customers to reduce demand on the Palo Alto electric distribution system during system emergencies. BACKGROUND The California "energy crisis" prompted a surge in State legislative funding for electric utilities and their customers to reduce electric usage. The objective was to reduce "peak demand" for electricity during the critical weekday hours of noon to six by targeting electricity using systems in the residential, commercial, industrial and agricultural sectors such as lighting, air conditioning, motors and the like. Such activities fall under the categories of "load management, load curtailment, or load control." With electric utility customers turning off lights, raising room temperature setpoints, and reducing "demand" of systems by improving their efficiency (more output for less input), the State generally CMR:430:02 Page 1 of 4 avoided having to turn off of portions of the electric grid when demand exceeded the available electric stipply (rolling blackouts). The City of Palo Alto participated in the various programs and received funding for the conversion of the traffic signal system from incandescent lamps to light .emitting diode technology, and the replacement of lighting systems in sixty municipal buildings to more efficient lights. Under a separate activity, the Utilities Department funded a new load curtailment system for the City Hall complex to serve as a technology demonstration project. This system (brand named "Tridium"), provides added operating efficiency to the City Hall complex by remote control of the City Hall space conditioning system, including control of room temperature setpoints, and the real time display of energy consumption. Building operations personnel can now control several building operating functions from a single control station rather than make manual adjustments throughout the building. The current "Tridium" system configuration permits City staff to reduce electric demand between 40 and 70 kW in the City Hall complex. DISCUSSION In recent months, NCPA has worked with the California Energy Commission to procure grant funding for partner utilities interested and capable of pursuing projects that would allow increased electric load control and curtailment capability. Public Works and Utilities staff has identified additional electric load curtailment capability in several City facilities that can be accomplished by the.grant’s construction deadline of May 11, 2003. With grant funding, staff proposes to expand the ability of the existing City Hall "Tridium" load control and curtailment system to provide a minimum of 45 kW of additional load curtailment capacity. Staff will install new electric load curtailment hardware, software and controls in the Water Quality Control Plant, City Hall, and the Downtown Library. This will address lighting, pumping, and space conditioning systems at these sites and be tied into the existing master load curtailment system. Declining the grant would result in a lost opportunity to significantly expand the capabilities of the existing backbone "Tridium" system and reduce future building operating costs at.essentially no cost to the City. The additional hardware, software and system programming needed to comply with the grant conditions would provide the City with the capability for future expansion of the "Tridium" system. This would allow for additional systems in City buildings to be CMR:430:02 Page 2 of 4 controlled at minimal costs (only the cost of the local control components). This additional control would result in increased load curtailment capability combined with reduced operating costs for City facilities if, for example, lighting or other systems could be reduced by fifty percent during low occupancy or custodial hours. The system could also be set to maximize the use of outside air, rather than condition (heat or cool) the air when conditions permit. RESOURCE IMPACT The City will provide the labor expense for the overall administration and expenses associated with the $70,000 grant from existing resources with assignment of personnel absorbed under current operating budgets. Grant funding will be used to purchase, install and program the required controls hardware and software. There are no other direct or indirect costs associated with the administration of this grant. A Budget Amendment Ordinance transferring the $70,000 grant from City Revenues to the appropriate Operating Budget will be submitted to Council during the Mid-Year Budget Adjustment. POLICY IMPLICATIONS The planning and implementation of this project are consistent with existing City policies. This project meets the objectives outlined in the Utility Strategic Plan Key Strategy 1, "Operate distribution systems in a cost effective manner", and Strategy 7, "Implement programs that improve the quality of the environment." TIMELINE The conditions of the grant require that 100% of the required work to be completed by May 11, 2003. ENVIRONMENTAL REVIEW This project is categorically exempt by the provisions of the California Environmental Quality Act and no further environmental review is necessary. ATTACHMENTS Resolution CMR:430:02 Page 3 of 4 PREPARED BY: VIRGINI~WAIK Marketi ~ng~ngineer DEPARTMENT HEAD: CITY MANAGER APPROVAL: FRANK BENEST City Manager CMR:430:02 Page 4 of 4 RESOLUTION NO. RESOLUTION OF THE COUNCIL OF THE CITY OF PALO ALTO APPROVING THE FILING OF AN ACCEPTANCE FOR GRANT MONEY WITH THE CALIFORNIA ENERGY COM}4ISSION FOR A GRANT UP TO $70,000 TO PARTIALLY FUND ’THE ELECTRIC LOAD CURTAILMENT AND CONTROLS SYSTEMS EXPANSION FOR CITY FACILITIES WHEREAS, pursuant to the Public Resource Code Section 254, the California Energy Commission is authorized to provide grants to city, county or city and county governments for load curtailment projects; and WHEREAS, the City of Palo Alto wishes to curtail electric demand during electric supply emergencies with the financial assistance of the California Energy Commission made available by one or more grants; NOW, THEREFORE, The Council of the City of Palo Alto does hereby RESOLVE as follows: SECTION i. The Council hereby approves the City of Palo Alto’s acceptance of funding from the California Energy Commission for the expansion of electric load curtailment and controls systems to be used in City facilities for the amount up to $70,000. SECTION 2.The City Manager or his designated representative, the Director of Utilities, is hereby authorized and empowered to execute in the name of the City of Palo Alto all necessary documents to effectuate the purpose of this resolution and to undertake all actions necessary to complete the load curtailment project. // // // // // // 021001 syn 0072219 1 SECTION 3. The Council finds that the adoption of this resolution does not constitute a project under the California Environmental Quality Act, and therefore no environmental assessment is required. INTRODUCED AND PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST:APPROVED: City Clerk APPROVED AS TO FORM: Mayor City Manager Senior Asst. City Attorney Director of Administrative Services Director of Utilities 021001 syn 0072219 2