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HomeMy WebLinkAboutStaff Report 2511-5575CITY OF PALO ALTO Climate Action and Sustainability Committee Friday, December 12, 2025   Agenda Item     1.Review and Discussion of City Facility Electrification; CEQA Status - Not a Project Late Packet Report Added, Staff Presentation Climate Action and Sustainability Committee Staff Report Report Type: ACTION ITEMS Lead Department: City Clerk Meeting Date: December 12, 2025 Report #:2511-5575 TITLE Review and Discussion of City Facility Electrification; CEQA Status - Not a Project This will be a late packet report published on December 4, 2025. 7 9 1 5 Climate Action and Sustainability Committee Staff Report From: City Manager Report Type: ACTION ITEMS Lead Department: Public Works Meeting Date: December 12, 2025 Report #:2507-5029 TITLE Review and Discussion of City Facility Electrification; CEQA Status - Not a Project RECOMMENDATION This is a discussion item; no action or recommendation is requested. BACKGROUND In efforts to align with the City’s goal of reducing carbon emissions 80% below 1990 levels by 2030 (“80 x 30”), the City adopted a Sustainability and Climate Action Plan (“S/CAP”)1 to guide actions toward achieving carbon neutrality. The S/CAP provides a comprehensive framework for reducing greenhouse gas (GHG) emissions across municipal operations, transportation, waste, and other environmental sectors. In 2023, the City adopted the 2023–2025 S/CAP Workplan,2 which outlines specific actions designed to advance progress toward the City’s long-term carbon reduction targets. The workplan identifies eight primary focus areas, four of which are climate-focused and directly support the “80 x 30” goal. Among these focus areas is the Electrification of City Facilities, a key strategy aimed at improving building efficiency, transitioning away from fossil fuel–based systems, and reducing the City’s operational emissions. The City conducted a Facility Condition Assessment (FCA) that included an on-site review of municipal buildings to identify which facilities still rely on fossil fuel or gas-burning equipment. This assessment served as an initial step in advancing the facility electrification goals as outlined in the 2023–2025 S/CAP Workplan.3 The FCA involved evaluations of each facility’s general physical condition, providing an analysis of the remaining service life of building systems. ANALYSIS 1 2022 Sustainability and Climate Action Plan; 2 2023-2025 S/CAP Workplan, 2023; 3 2023-2025 S/CAP Workplan, 2023; pg. 12 7 9 1 5 The FCA provides a baseline understanding of the City’s building portfolio and identifies facilities that continue to rely on gas-burning mechanical and water-heating equipment. While the FCA did not include in-depth technical analysis or system design, it serves as a valuable first step in identifying where future electrification efforts can be focused to align with S/CAP goals. The data helps inform strategic decision-making by highlighting equipment nearing the end of its useful life and by establishing an inventory of gas-dependent systems across City facilities. 7 9 1 5 2. Focus on smaller facilities that present manageable implementation challenges, allowing staff to evaluate the complexity, cost, and feasibility of future large-scale conversions. This pilot effort enables the City to test electrification implementation processes, assess logistical and construction challenges, and identify best practices for future facility conversions. Lessons learned from these initial projects will help refine project scheduling and procurement strategies, ultimately strengthening the City’s approach to broader facility electrification planning and capital investment. A Request for Proposals (RFP) for a design consultant, including the five pilot buildings and a provision for on-call services to evaluate additional City buildings as needed, is planned to be released in early 2026, with consultant selection expected shortly thereafter. Following contract approval by Council, the design consultant will conduct detailed assessments, including electrical capacity needs, cost estimates, and preparation of permit drawings and construction bidding documents. The consultant will also provide guidance on whether proactively replacing equipment that has not yet reached the end of its useful life would result in greater long-term cost efficiency and operational benefit. In addition, the consultant will assess whether infrastructure upgrades are necessary to support the anticipated changes under this pilot project or future facility conversions. Overall, the FCA findings and pilot approach provide a practical, data-driven foundation for advancing municipal electrification in a phased, cost-effective manner consistent with the S/CAP initiative. FISCAL/RESOURCE IMPACT No additional funding is being requested at this time. Staff anticipates submitting additional resource requests through the regular annual budget process as the work plan progresses and project needs are further defined. Acknowledging the City’s General Fund financial constraints, staff will endeavor to identify funding already in CIP projects to building maintenance and repair or eligible non-General Fund sources prior to bringing forward new additional investments. STAKEHOLDER ENGAGEMENT Stakeholder engagement for the City Facility Electrification effort included confirming that the identified facilities are actively maintained by City staff and verifying whether any were already scheduled for equipment or unit upgrades. This coordination ensured that the pilot analysis accurately reflects current maintenance and replacement plans. Staff also plans to involve the Utilities Department as design work progresses to ensure coordination and alignment with energy infrastructure and grid requirements. ENVIRONMENTAL REVIEW This report is for informational purposes only with no action required by the Council, and therefore it is not a project subject to review under the California Environmental Quality Act (CEQA). APPROVED BY: 7 9 1 5 Brad Eggleston, Director Public Works/City Engineer December 12, 2025 www.paloalto.gov Climate Action & Sustainability Update City Facility Electrification 2 Overview Fully Electric Existing Facilities City Facility Condition Assessment Electrification-Relevant Findings Facility Prioritization & Analysis Pilot Building Selection RFP Approach & Next Steps 3 City Facility Condition Assessment (FCA) FCA implemented as part of S/CAP Workplan. Citywide assessment of 53 municipal buildings. Identified building’s inventory of gas-burning mechanical and water heating equipment. Provided baseline inventory of HVAC and water-heating units. Provided unit life-span and Remaining Useful Life (RUL) of equipment. 4 Fully Electric Facilities •Hoover Park Restroom •Juana Briones Park Restroom •Junior Museum and Zoo •Landfill Buildings/Sheds •Lot 7: 350 Sherman Parking Structure •Lot Q: High Street Parking Garage •Lot R Parking Garage •Municipal Service Center Yard Buildings •Rinconada Library •Rinconada Pool Restroom •Stanford Palo Alto Community Field Building •Arastradero Preserve gateway Facility •Byxbee Park Restroom •Seale Park Restroom •Cambridge Parking Garage •Fire Station 4 (upcoming) •Fire Station 8 •Palo Alto Public Safety Building •Alma community room •Baylands •Children's Library •El Camino Park Restroom and Scorekeeper •Foothills Park Entrance Station •Foothills Park Interpretive Center •Foothill Park Maintenance Build •Gamble Garden Greenhouse •Gamble Garden Restroom •Golf Course Workshop and Maintenance Building •Greer Park Restroom 5 Electrification-Relevant Findings 26 buildings contained at least one gas-burning unit (mechanical and/or water-heating systems). 126 total units (mechanical and/or water-heating). Buildings showcase a wide range of Remaining Useful Life (RUL) for equipment. Approximately 40% of buildings contain systems with an average remaining useful life of three years or less. 6 Facility Prioritization & Analysis City Facility Maintenance Buildings (18 buildings). Mechanical and water-heating equipment (94 units). Facilities with equipment near routine replacement, or near End of Useful Life (EUL). Prioritized smaller facilities to evaluate implementation complexity, cost, and feasibility. 7 “Pilot” Building Selection Applied prioritization criteria across facilities. City staff coordination for upcoming maintenance. Five facilities identified as the strongest candidates for “Pilot” electrification. “Pilot” selection supports a phased and cost-effective implementation. “Pilot” approach helps staff refine project scope and develop best practices before scaling to more complex and larger facilities. 8 The “Pilot” Five Golf Course Pro Shop /Hofbrau College Terrace Library Downtown Library Art Center Ventura Community Center •Packaged Unit, 4 TON •Packaged Unit, 6 to 7.5 TON •Packaged Unit, 8 to 10 TON •Water Heater, 100 to 199 gal •Boiler, 251 to 500 MBH •Tankless Water Heater •Tankless Water Heater •Packaged Unit, 26 to 50 TON •Water Heater •Gas Water Heater •Gas Water Heater •Gas Water Heater •Gas furnace •Foodservice Equipment •Gas Boiler •Gas Boiler 9 RFP Approach & Next Steps RFP Design Consultant for “Pilot” buildings. Detailed assessment of units near or past useful life, infrastructure needs, and cost estimates. Detailed assessment to electrify non-EUL units for efficiency, cost, schedule, and operational benefits. Provision for possible on-call service. RFP anticipated to be released early next year with consultant selection. 11 Climate Action Working Group Comments 1. What are our [City’s] internal capabilities to do this? Why do we need a consultant? 2. Will we learn alongside so we can eventually do in-house? 3. Will learning from the pilot benefit the commercial electrification program? Confirm the consultant is technical support, not project programming support.