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Home My WebLink About2021-08-17; City Council; ; Authorization of an Agreement with San Diego Gas & Electric for Participation in the Savings by Design Program for the Fire Station No. 2 Reconstruction ProjectMeeting Date: Aug. 17, 2021 To: Mayor and City Council From: Scott Chadwick, City Manager Staff Contact: Steven Stewart, Municipal Projects Manager steven.stewart@carlsbadca.gov, 760-602-7543 Michael Calderwood, Fire Chief michael.calderwood@carlsbadca.gov, 760-931-2141 Subject: Authorization of an Agreement with San Diego Gas & Electric for Participation in the Savings by Design Program for the Fire Station No. 2 Reconstruction Project District: 4 Recommended Action Adopt a resolution authorizing the Deputy City Manager, Public Works, to execute an agreement for participation in the San Diego Gas & Electric Savings by Design Program for the Fire Station No. 2 Reconstruction Project, Capital Improvement Program Project No. 4060 Executive Summary The Savings by Design Program, which is coordinated locally by SDG&E, encourages design and construction of high-performance projects that offer economic, health and environmental advantages to building owners, building occupants and the public. Staff invited SDG&E to review the design documents for the Fire Station No. 2 reconstruction project and to provide an estimate of the potential incentives, should the city choose to participate in the Savings by design Program. SDG&E estimates the project could generate up to $577 in incentives as a one- time payment through the program. Full participation in the program requires execution of an agreement with SDG&E to provide design assistance and financial incentive. Discussion Savings by Design is California’s nonresidential new construction energy efficiency program, administered statewide and funded by utility customers through the Public Purpose Program’s surcharge, applied to gas and electric services. SDG&E is a participating California utility and offers the Savings by Design Program to the nonresidential building industry. The program encourages energy-efficient building design and construction practices. It also promotes the efficient use of energy by offering design assistance, supported by financial incentives based on project performance. Savings by Design uses the 2019 California Building Energy Efficiency Standards and other industry standards as a reference baseline when evaluating projects. It encourages and generates energy savings within projects to perform better than mandated by Title 24 of the Aug. 17, 2021 Item #3 Page 1 of 9 California Building Code. Its analyses provide detailed technical and financial assistance data that allow owners and design teams to make informed decisions regarding energy efficient features. Full participation in the program requires executing an agreement with SDG&E to provide design assistance and financial incentive. In exchange, the city will provide the utility all project documentation and energy-efficient equipment specifications and will allow SDG&E staff to verify installation and operation post-construction. The Savings by Design Program agreement is Attachment A of the proposed resolution. Climate Action Plan consistency This project is consistent with Measures B and J in the city’s Climate Action Plan. Additionally, this project will meet an objective of the city’s Energy Conservation and Management Policy No. 71. Specifically, • Measure B Action 1 states: “Implement and enforce Title 18, Chapter 18.30, Section 18.30.130 of the Carlsbad Municipal Code, mandating solar photovoltaic energy generation systems on new non-residential buildings.” The project work scope requires a photovoltaic solar array on the roof sized to meet the requirements of City Ordinance CS-347, which the City Council approved on March 12, 2019. • Measure J Action 2 states: “Implement and enforce Title 18, Chapter 18.30, Sections 18.30.150 and 18.30.170 of the Carlsbad Municipal Code, mandating alternative water heating requirements in new residential and non-residential buildings.” The project work scope requires installation of a solar water heater to meet the requirement of Section 18.30.150. • Council Policy 71, subparagraph 2(a), on construction of civic facilities, states: “Whenever practicable and within a reasonable cost/benefit ratio, design and construct mechanical and electrical systems to achieve the maximum energy efficiency achievable with current technology.” The design for this project meets the latest federal standards, as set forth in Title 24, with compliant heating, ventilation and air conditioning equipment, LED fixtures and photovoltaic solar arrays to optimize electrical energy efficiency. Fiscal Analysis SDG&E estimates the project could generate up to $577 in Savings by Design Program incentives as a one-time payment based on the current design and anticipated performance post-construction. Assuming the city builds the project as designed, and the project meets all program requirements, SDG&E will pay the incentive. If the city makes any changes during construction from the original design, SDG&E may adjust the incentive to reflect the revised estimated building performance. Next Steps If authorized by the City Council, the Deputy City Manager, Public Works, will execute and submit the Savings by Design Owner Agreement. After SDG&E executes the agreement, city staff will monitor progress and will coordinate final post-construction evaluation with SDG&E staff. Aug. 17, 2021 Item #3 Page 2 of 9 Environmental Evaluation (CEQA) The project has been reviewed in accordance with the California Environmental Quality Act and the Environmental Protection Ordinance (Title 19) of the Carlsbad Municipal Code. The environmental impact assessment prepared in conjunction with the project identified potentially significant impacts to cultural resources, as well as exposure of people to noise. Mitigation measures have been incorporated into the design of the project or have been placed as conditions of approval for the project such that all potentially significant impacts have been mitigated to below a level of significance. On Feb. 19, 2020, the Planning Commission approved Resolution No. 7359 adopting a mitigated negative declaration and mitigation monitoring and reporting program for the work being done on Fire Station No. 2 and the temporary fire station. The recommended action is within the scope of these documents and no further environmental review is required under CEQA Guidelines Section 15162. Public Notification This item was noticed in accordance with the Ralph M. Brown Act and was available for public viewing and review at least 72 hours prior to the scheduled meeting date. Exhibits 1. City Council resolution 2. Location map Aug. 17, 2021 Item #3 Page 3 of 9 RESOLUTION NO. 2021-188 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, AUTHORIZING THE DEPUTY CITY MANAGER, PUBLIC WORKS TO EXECUTE AN AGREEMENT FOR PARTICIPATION IN THE SAN DIEGO GAS & ELECTRIC (SDG&E) SAVINGS BY DESIGN (SBD) PROGRAM FOR THE FIRE STATION NO. 2 RECONSTRUCTION PROJECT, CAPITAL IMPROVEMENT PROGRAM (CIP) PROJECT NO. 4060 WHEREAS, the City Council of the City of Carlsbad, California, has determined it n_ecessary, desirable and in the public interest to replace Fire Station No. 2, CIP Project No. 4060 (Project); and WHEREAS, on April 21, 2020, the City Council adopted Resolution No. 2020-065, approving the preliminary design plans and specifications for the Project; and WHEREAS, on Sept. 22, 2020, the City Council awarded a contract to Barnhart-Reese Construction, Inc. to complete the design and construct the improvements for the Project; and WHEREAS, participation in the SDG&E SBD Program for the Project will help achieve energy savings as required per the city's Climate Action Plan and En,ergy Conservation and Management Policy No. 71; and WHEREAS, SDG&E estimates the city is eligible for $577 in incentives, paid as a one-time payment based on the current energy efficient design of the Project; and WHEREAS, on Feb. 19, 2020, the Planning Commission approved Resolution No. 7359 adopting a Mitigated Negative Declaration and Mitigation Monitoring and Reporting Program for Fire Station No. 2 and the temporary fire station. The recommended action is within the scope of these documents and no further environmental review is required per California Environmental Quality Act (CEQA) Guideline Section 15162. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as follows: 1. That the above recitations are true and correct; 2. That the Deputy City Manager, Public Works is hereby authorized and directed to execute the agreement, attached hereto as Attachment A, with SDG&E for participation in the Savings by Design Program for the Fire Station No. 2 Reconstruction Project, CIP Project No. 4060. Aug. 17, 2021 Item #3 Page 4 of 9 PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carlsbad on the 17th day of August, 2021, by the following vote, to wit: AYES : Hall, Blackburn, Acosta, Bhat-Patel. NAYS: None. ABSENT: None. MATT HALL, Mayor ~~"'Yfoc BARBARA ENGLESON, City Clerk (SEAL) Aug. 17, 2021 Item #3 Page 5 of 9 Aug. 17, 2021 Item #3 Page 6 of 9 Aug. 17, 2021 Item #3 Page 7 of 9 Aug. 17, 2021 Item #3 Page 8 of 9 Aug. 17, 2021 Item #3 Page 9 of 9 Steven Stewart, Municipal Projects Manager Michael Calderwood, Fire Chief Aug. 17, 2021 Authorize agreement for participation in the San Diego Gas & Electric Savings by Design Program for the Fire Station No. 2 Reconstruction Project . Recommendation Adopt a resolution: •Authorizing the Deputy City Manager, Public Works to execute an agreement for participation in the San Diego Gas & Electric Savings by Design Program for the Fire Station No. 2 Reconstruction Project, Capital Improvement Program Project No. 4060 2 Background •The design work for the Fire Station No. 2 Reconstruction project has been completed, submitted to the city for review •In anticipation of the design completion and permitting, staff contacted SDG&E regarding participation in their Savings by Design Program in order to receive a one-time incentive payment of up to $577 upon completion of the project •Savings by Design is California’s non-residential new construction energy efficiency program, administered statewide and funded by utility customers through the Public Purpose Program’s surcharge, applied to gas and electric services 3 Next Steps •If authorized by the City Council, the Deputy City Manager, Public Works will execute and submit the Savings by Design Owner Agreement •After SDG&E executes the Owner Agreement, staff will monitor the progress of the project and will coordinate final post-construction evaluation with SDG&E staff 4 Recommendation Adopt a resolution: •Authorizing the Deputy City Manager, Public Works to execute an agreement for participation in the San Diego Gas & Electric Savings by Design Program for the Fire Station No. 2 Reconstruction Project, Capital Improvement Program Project No. 4060 5 Thank you