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HomeMy WebLinkAbout11/19/2019 Item 14, Floyd Council Agenda Correspondence City of San Luis Obispo, Council Memorandum DATE: November 18, 2019 TO: Mayor and City Council FROM: Aaron Floyd, Utilities Director VIA: Derek Johnson, City Manager DJ SUBJECT: Item #14 – Water Energy Efficiency Project - November 19, 2019 Council Meeting Staff received a request from a Councilmember for clarification on Item #14, Water Energy Efficiency Project, and is distributing this correspondence to all Councilmembers before the Council meeting on November 19, 2019. Councilmember Questions: 1) Packet Page 158 - How does the project contribute to the City’s Zero Net Energy goals, reduce energy consumption, and reduce greenhouse gas emissions? Will Community Choice Energy and participation with Monterey Bay Community Power reduce or change the Project’s benefits? Staff Response: The Water Energy Efficiency Project is proposed at the Water Treatment Plant, or WTP, which is the City facility where raw water from the City’s three surface water reservoirs (Whale Rock, Salinas, and Nacimiento Reservoirs) is treated to meet the i community’s potable (drinking) water needs. The WTP is located north of the city limits adjacent to Cal Poly on Stenner Creek Road. As it is located outside the City, the WTP cannot receive service from Monterey Bay Community Power (MBCP) and will continue to be served by Pacific Gas and Electric (PG&E). The Water Energy Efficiency Project focuses on improving the efficiency of WTP operations and significantly reduces energy consumption. These steps to lower greenhouse gas emissions are consistent with the existing 2012 Climate Action Plan and the pending Plan. 2) Packet Page 160 - What Resiliency Phase measures are proposed at this time? Staff Response: As described on Packet Pages 160 and 161, staff is proposing a permanent generator to power the entire Water Treatment Plant in the event of a Public Safety Power Shutoff (PSPS) be included in the proposed Water Energy Efficiency Project. Council approved funding for the permanent generator at its meeting on August 20, 2019 and Agenda Item 14-November 19, 2019 Page 2 of 2 funding for preliminary design was approved in early November. The estimated cost for the WTP generator is $1.7 million. Staff has been working with Cal Poly staff on a proposed ground lease for the Water Energy Efficiency Project since October 2018. On Friday, November 15, 2019 staff from Cal Poly communicated that it could not enter into the proposed “no-cost” ground lease. Therefore, staff proposes to eliminate Recommendation 4 to “Authorize the City Manager to execute a no-cost 50-year ground lease…” from Council consideration at this time. Other areas within the Water Treatment Plant can be used for construction staging. Staff will continue to work with staff from Cal Poly on terms related to the ground lease and will return to Council if the property is necessary for future Resiliency Phase measures. i The City Council has received frequent updates in 2019 on construction now underway at the City’s Water Resource Recovery Facility, or WRRF, located within the City on Prado Road. The WRRF is the City facility that treats wastewater. The proposed Energy Efficiency Project is proposed at the Water Treatment Plant.