HomeMy WebLinkAbout2013-05-28; Municipal Water District; 769; Approval Advertise Bids Maerkle Project 502511
CARLSBAD MUNICIPAL WATER DISTRICT - AGENDA BILL
AB# 769 APPROVAL OF PLANS AND SPECIFICATIONS
AND AUTHORIZATION TO ADVERTISE FOR
BIDS FOR THE PRESSURE CONTROL
HYDROELEaRIC FACILITY AT MAERKLE
DEPT.DIRECTOR 0^
MTG. 05/28/2013
APPROVAL OF PLANS AND SPECIFICATIONS
AND AUTHORIZATION TO ADVERTISE FOR
BIDS FOR THE PRESSURE CONTROL
HYDROELEaRIC FACILITY AT MAERKLE
GEN. COUNSEL
DEPT. PW-UTILITIES
APPROVAL OF PLANS AND SPECIFICATIONS
AND AUTHORIZATION TO ADVERTISE FOR
BIDS FOR THE PRESSURE CONTROL
HYDROELEaRIC FACILITY AT MAERKLE CITY MGR.
RESERVOIR, PROJECT NO. 5025
RECOMMENDED ACTION:
Board of Directors of Carlsbad Municipal Water District (CMWD) adopt Resolution No.
1469 approving the plans and specifications and authorizing the Secretary ofthe Board to
advertise to receive bids for the Pressure Control Hydroelectric Facility at Maerkle Reservoir, Project
No. 5025
ITEM EXPLANATION;
The project site is on a 51.87 acre parcel owned by Carlsbad Municipal Water District (CMWD),
referred to as the Maerkle Reservoir property, and is accessed from Applewood Lane in the City of
Vista. The property is located approximately one mile north of Faraday Avenue near the eastern
limits of the City of Carlsbad as shown on Exhibit 1. The proposed project will receive relatively high
pressure water from the San Diego County Water Authority's Tri-Agencies Pipeline Connection No. 3
(TAPS), and will then convert this pressure to electrical power through a hydroelectric generator prior
to discharging the water to either the 10 million gallon (MG) Maerkle Tank or 200 MG Maerkle Dam
Reservoir.
The pressure control hydroelectric facility (PCHF) would be located adjacent to an existing pressure
reducing station. The PCHF would utilize the flow and pressure from the TAPS to produce up to 135
kilowatts of electricity. The turbine generator would discharge the water down steam ofthe existing
pressure reducing station to either the 10 MG Maerkle Tank or 200 MG Maerkle Dam Reservoir.
Power License - The PCHF will need to obtain a license from the Federal Energy Regulatory
Commission (FERC). The shortest process for a FERC license is to obtain a "Conduit Exemption", which
requires the PCHF to meet three conditions including connecting to a conduit (pipeline) that was
originally constructed for a non-hydropower use, ownership of the land by CMWD for the proposed
powerhouse, and installing the power generation facility before the final point of discharge. Staff
submitted an application to the FERC requesting a "Conduit Exemption" in compliance with
requirements of Part 1 of the Federal Power Act. The exemption request complies with all
requirements ofthe Code of Federal Regulations (CFR) 18, Part 4, Subpart D, Section 438(a) and (b).
Staff received a comment letter dated March 27, 2013 from FERC and responded to their comments
on May 6, 2013.
DEPARTMENT CONTACT: William Plummer 760-602-2768 bill.plummer@carlsbadca.gov
FOR SECRETARY USE.
BOARD ACTION: APPROVED X CONTINUED TO DATE SPECIFIC •
DENIED CONTINUED TO DATE UNKNOWN •
CONTINUED • RETURNED TO STAFF •
WITHDRAWN • OTHER - SEE MINUTES •
AMENDED • REPORT RECEIVED •
The FERC comments were minor and staff anticipates receiving a license through the "Conduit
Exemption" process in the next few months.
Tariff-The San Diego Gas & Electric's (SDG&E) Renewable Energy Self-Generation Bill Credit Transfer
(RES-BCT) tariff results in the shortest payback period estimated at 9.5 years for the Turbine Pump
generator. This tariff allows renewable enerev producers to generate electricity at one meter location
and use the credit at another owned meter location, commonly referred to as wheeling. Therefore,
CMWD would be allowed to use the excess electricity generated at the PCHF as a credit on their
electricity bill at another location. In addition, any Renewable Energy Credits generated would be
owned by CMWD. To receive the tariff, the CMWD must submit a "Generation Bill Credit Transfer
Allocation Request Form" (form 142-0546) with up to a maximum of 50 credit meter accounts. The
RES-BCT tariff is available on first-come first-served basis, until the combined rated generating
capacity within SDG&E's service territory reaches SDG&E's share of 8.1% of the statewide 250 mega-
watts limitation. Staff will submit the request form to SDG&E after the Board considers award of a
construction contract and an analysis is made ofthe meters to designate to receive the credit.
Electric Rule 21 Interconnection - Electric Rule 21 is a tariff that describes the interconnection,
operating and metering requirements for generation facilities to be connected to a utility's
distribution system, over which the California Public Utilities Commission (CPUC) has jurisdiction. The
Rule 21 tariff for SDG&E is on their website. CMWD may enter into an Interconnection Agreement
with SDG&E prior to official order from FERC.
FISCAL IMPACT:
Project Cost - Table 1 below presents a project cost budget using the construction cost from Carollo
Engineers. Funding for the project is appropriated in the Fiscal Year 2012/2013 Capital Improvement
Program in the amount of $2,000,000 from the Water Replacement Fund. Sufficient funds are
available for completion ofthe project construction.
TABLE 1
PROJECT COST BUDGET FOR
DESCRIPTION ESTIMATED
COSTS
PRELIMINARY AND FINAL DESIGN, ENVIRONMENTAL, & PERMITS $425,000
CONSTRUCTION
Estimated Construction Cost $1,112,000
Construction Management & Inspection, Miscellaneous Items, staff support 103,000
Subtotal $1,215,000
TOTAL PROJECT COST $1,640,000
CURRENT APPROPRIATION $2,000,000
ADDITIONAL APPROPRIATION REQUIRED $-0-
The current financial status ofthe PCHF project is shown in Table 2 below.
TABLE 2 - CURRENT EXPENDITURES FOR
PRESSUR £ CONTROL HYDRO ELECTRIC FACILITY, PROJECT NO. 5025
TASK DESCRIPTION CURRENT YEAR
APPROPRIATION
CURRENT
FISCAL YEAR EXPENDITURES
REMAINING
BALANCES
Staff & miscellaneous $100,000 $28,376 $71,624
Consultant 425,000 413,563 11,437
Construction 1,475,000 0 1,475,000
TOTAL $2,000,000 $441,939 $1,558,061
Operation 8i Maintenance - Because ofthe technical nature ofthe power generating equipment and
its control system, the actual operation and maintenance work will be performed by a private
company engaged in this type of work and will be budgeted based on an "Ongoing Service
Agreement" at an initial rate estimated at $12,000 per year. Revenue, in the form of a credit against
existing meters, for the first year of operation is estimated at $82,000 per year based on an annual
operation of 6,158 hours. As previously mentioned, Staff will determine which meters to use the
credit towards after the Board considers award of a construction contract and an analysis is made of
existing meters.
ENVIRONMENTAL IMPACT:
The project is exempt from the California Environmental Quality Act (CEQA) per State CEQA
Guidelines Section 15303(d) - New Construction or Conversion of Small Structures. The City Planner
filed a Notice of Exemption with the County of San Diego on October 18, 2011.
EXHIBITS:
1. Location Map
2. Resolution No. 1469 of the Board of Directors of Carlsbad Municipal Water District (CMWD)
approving the Plans and Specifications and Authorizing the Secretary of the Board to advertise for
Bids for the Pressure Control Hydroelectric Facility at Maerkle Reservoir, Project No. 5025.
RAWN BY: SCOTT EVANS. CARLSBAD UWVES DEPT. 8/18/W C:\U7?i.77ES DEPARmENT\DESIGN DIVISI0N\PLUUUER\5025.DWG
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RESOLUTION NO. 1469
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A RESOLUTION OF THE BOARD OF DIRECTORS OF
3 CARLSBAD MUNICIPAL WATER DISTRICT (CMWD),
APPROVING THE PLANS AND SPECIFICATIONS AND
AUTHORIZING THE SECRETARY OF THE BOARD TO
5 ADVERTISE FOR BIDS FOR THE PRESSURE CONTROL
HYDROELECTRIC FACILITY AT MAERKLE RESERVOIR,
6 PROJECT NO. 5025
WHEREAS, the Board of Directors ofthe Carlsbad Municipal Water District, California has
9 determined it necessary, desirable, and in the public interest to construct the Pressure Control
10 Hydroelectric Facility at Maerkle Reservoir, Project No. 5025; and
11 WHEREAS, the plans and specifications for furnishing of all labor, materials, tools,
equipment, transportation, and other expenses necessary or incidental of said project have been
prepared and are on file in the Public Works Department - Utilities Division of the City of
Carlsbad and are incorporated by reference herein; and
WHEREAS, this project is categorically exempt from CEQA as a Class 3 exemption
pursuant to Section 15303 of the CEQA Guidelines - New Construction or Conversion of Small
-IS Structures, and a "Notice of Exemption" was filed with the County of San Diego on October 18,
19 2011; and
20 WHEREAS, the Engineer's estimate for the project construction cost is $1,112,000; and
21 WHEREAS, sufficient funds exist in the Water-Capital Replacement fund.
NOW, THEREFORE, BE IT RESOLVED by the Carlsbad Municipal Water District Board ofthe
City of Carlsbad, California, as follows:
1. That the above recitations are true and correct.
2. That the plans, specifications and contract documents for the Pressure Control
Hydroelectric Facility at Maerkle Reservoir, Project No. 5025, are on file in the Public Works
Department - Utilities Division ofthe City of Carlsbad and are hereby approved.
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3. The Secretary of the Board is hereby authorized and directed to publish, in
2 accordance with State law, a Notice to Contractors Inviting Bids for the construction of the
3 Pressure Control Hydroelectric Facility at Maerkle Reservoir, Project No. 5025 in accordance with
^ the plans, specifications, and contract documents referred to herein.
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PASSED, APPROVED AND ADOPTED at a Special Meeting of the Board of Directors of the
Carlsbad Municipal Water District of the City of Carlsbad on the 28*^ day of May 2013, by the
following vote to wit:
AYES: Board Members Hall, Packard, Wood, Blackburn, Douglas.
NOES: None.
ABSENT: None.
ATTEST:
•A-^.^'ESON, Secretary
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