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HomeMy WebLinkAbout2017-10-17; City Council; Resolution 2017-199RESOLUTION NO. 2017-199 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, AUTHORIZING THE CITY MANAGER TO SIGN THE LETTER OF COMMITMENT TO PROVIDE A DEMONSTRATION SITE AND MATCH FUNDING FOR THE ADVANCED MICROGRID DEMONSTRATION BUSINESS CASE GRANT FUNDING OPPORTUNITY. EXHIBIT 1 WHEREAS, the City Council of the City of Carlsbad, California, approved a Climate Action Plan on Sept. 22, 2015 (Reso. No. 2015-244); and WHEREAS, the Climate Action Plan calls for the city to reduce energy consumption, develop renewable energy projects and provide electric vehicle charging infrastructure; and WHEREAS, a microgrid is a managed energy system that usually contains renewable energy projects and electric vehicle charging infrastructure and can reduce energy consumption; and WHEREAS, the City of Carlsbad Safety and Service Center ("Complex") provides critical public services, such as the Emergency Operations Center, Police Department headquarters, Fire Department headquarters, Fire Station 5 and the Fleet Maintenance Center; and WHEREAS, the Complex will be the location for the new Public Works Maintenance and Operations Center, which will house personnel and vehicles that maintain and repair the city's essential services and infrastructure; and WHEREAS, the continued operation of the Complex in times of local or regional electrical grid failure is essential to the continued provision of critical services to the community during an emergency; and WHEREAS, a microgrid at the Complex would allow for electrical generation, storage and use independent of the San Diego Gas & Electric grid; and WHEREAS, having a microgrid at the Complex would allow for continued electrical service during emergencies for continued provision of critical services to the community; and WHEREAS, the California Energy Commission is offering a grant funding opportunity for up to $5 million to demonstrate the business case for advanced microgrid deployment in the State of California; and WHEREAS, Cleantech San Diego has offered to apply for the grant if the City of Carlsbad provides a demonstration site and fulfills the 20 percent matching contribution requirement; and October 17, 2017 Item #1 Page 4 of 7 WHEREAS, the city's matching contributions may include energy efficiency improvements to existing buildings, inclusion of photovoltaic solar panels and electric vehicle charging infrastructure on the future Maintenance and Operations Center, and/or staff time; and WHEREAS the estimated cost of the energy efficiency improvements, solar panels and electric vehicle charging is approximately $2.1 million, which exceeds the 20 percent matching contribution requirement. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as follows: 1. 2. That the above recitations are true and correct. That the city manager is authorized and directed to sign the Letter of Commitment to the California Energy Commission, which is attached hereto as Attachment A. PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carlsbad on the 17th day of October, 2017, by the following vote, to wit: AYES: M. Hall, K. Blackburn, M. Schumacher, C. Schumacher, M. Packard. NOES: ABSENT: None. None. (SEAL) October 17, 2017 Item #1 Page 5 of 7 Oct. 18, 2017 TO: California Energy Commission {city ofCarlsbad REFERENCE: GFO 17-302-Demonstrate Business Case for Advanced Microgrids in Support of California's Energy and GHG Policies SUBJECT: Letter of Commitment for the City of Carlsbad to provide Demonstration Site and Contribute toward Match Funding To Whom It May Concern: The City of Carlsbad is excited to provide this Letter of Commitment for Clean Tech San Diego and TRC Energy's Grant Funding Opportunity (GFO) application for the proposed development and deployment of a clean microgrid at our City of Carlsbad Safety and Service Center complex (Complex) home to critical public safety operations. The purpose of the microgrid will be to demonstrate the replicable business case for all municipalities, particularly those along the coastal zones, of the commercial use of microgrids that save energy and valuable financial resources; respond to regional and wide-scale utility grid demands; provide invaluable support for resiliency and continuity of operations in the event of grid outages; and achieve city and state climate action planning goals with the ongoing reduction of greenhouse gas emissions. The City of Carlsbad has adopted and promoted several Sustainability and Environmental Guiding Principles, which include a long standing commitment to preserving and protecting the high quality of life enjoyed in Carlsbad for generations to come through sound procurement decisions; continually exploring investments in energy efficiency projects and deployment of renewable energy resources; and consistently promoting the social, economic, and environmental factors that contribute to a sustainable community. The City of Carlsbad is an active participant in the North County (San Diego) Coastal Energy Collaborative along with the neighboring cities of Oceanside, Encinitas, Del Mar and Solana Beach. We are presently engaged with the San Diego Association of Governments (SANDAG) to implement important energy efficiency projects identified in an Energy Roadmap prepared in October 2014. We prepared our Climate Action Plan (adopted in September 2015) concurrently with updating the city's General Plan, so that all policies are consistent with the Community Vision. Our interest in partnering with Clean Tech San Diego and TRC Energy for this GFO is fully aligned with our objectives, as stated in the following Community Vision Core Value: Office of the City Manager City Hall 1200 Carlsbad Village Drive I Carlsbad, CA 92008 I 760-434-2820 t October 17, 2017 Item #1 Page 6 of 7 Core Value 6: Sustainability: Build on the city's sustainability initiatives to emerge as a leader in green development and sustainability. Pursue public/private partnerships, particularly on sustainable water, energy, recycling and foods. We share the CEC's objectives to reduce peak demand, electricity and gas usage, and greenhouse gas (GHG) emissions in California. The City of Carlsbad is committing to the field deployment of the clean microgrid at the Complex, which includes the city's Safety Center, Safety Training Center, a Fire Station, Fleet Maintenance Center, and a planned Maintenance and Operations Center, as proposed by the Clean Tech San Diego/TRC Energy partnership. We look forward to integrating solar generation, battery storage, energy efficiency projects, cogeneration capabilities, microgrid controls that will allow efficient and effective demand response capabilities and other potential projects such as integration of electric vehicle-to-grid technology, to create a replicable advanced microgrid that will serve as an example for municipalities throughout the State of California. The Complex contains facilities that provide critical services to the community and making the complex more resilient is a great benefit. We are able to commit to providing the site energy data and allow installation of the technology/ies and energy metering equipment. The City of Carlsbad will ensure that the facilities remain accessible for collection of performance information, as well as the maintenance and optimization of the equipment, throughout the demonstration period. Proposed match funding, which may be a combination of energy efficiency, renewable energy and electric vehicle charging project costs and rebates, equipment, materials and information technology services, will be included in our internal budgeting requests for fiscal year 2018-19. We are also prepared to contribute staff time and consultant expenses towards the required matching funds. We are prepared to commit that if the grant is awarded for this project, but it is later determined that our proposed match funding is not approved by the California Energy Commission, we will work with our Clean Tech San Diego, TRC Energy and other partners to make all possible attempts to obtain alternative replacement funding. We applaud the California Energy Commission for its innovative research program and look forward to seeing practical and viable benefits emerge for California's energy programs, as well as its economy, from this project. This demonstration testing has the potential to demonstrate the sustainable benefits of both the City of Carlsbad's and the CEC's investments. Thank you for your consideration. We look forward to participating in this unique and valuable opportunity. SW Kevin wfor'l'J'"----- City Manager City of Carlsbad Office of the City Manager City Hall 1200 Carlsbad Village Drive I Carlsbad, CA 92008 I 760-434-2820 t October 17, 2017 Item #1 Page 7 of 7