HomeMy WebLinkAbout2011-12-06; Municipal Water District; 744; WATER ENERGY EFFICIENCY GRANT FY 2012CARLSBAD MUNICIPAL WATER DISTRICT - AGENDA BILL13
AB# 744
MTG. 12/06/11
DEPT. UTIL
AUTHORIZE APPLICATION FOR WATER AND
ENERGY EFFICIENCY GRANT FOR FISCAL YEAR
2012 FOR THE PRESSURE CONTROL
HYDROELECTRIC FACILITY, PROJECT NO. 5025
DEPT. DIRECTOR ^_
CITY ATTORNEY ^r\f^
CITY MANAGER /<_>—
RECOMMENDED ACTION:
Adopt Resolution No. 1433 to authorize application for Water and Energy Efficiency Grant
with Federal Department of the Interior, Bureau of Reclamation (BUREC) for the Pressure Control
Hydroelectric Facility, Project No. 5025.
ITEM EXPLANATION:
WaterSMART is a grant program for agencies with water or power delivery authority to leverage their
money and resources by cost sharing with BUREC on projects that seek to conserve and use water
more efficiently, increase the use of renewable energy and improve energy efficiency, benefit
endangered and threatened species, facilitate water markets, or carry out other activities to address
climate-related impacts on water or prevent any water-related crisis or conflict. On November 7, 2011
BUREC released funding opportunity announcements for two WaterSMART funding programs: 1)
Water and Energy Efficiency Grants for FY 2012, and 2) Title XVI Water Reclamation and Reuse
Program Construction Grants for FY 2012. Due dates for the grant programs are January 19, 2012
and January 17, 2012, respectively. A total of $18.5 million is available for grants. Through
WaterSMART Grants, BUREC provides grants for up to 50 percent of the total project cost. Funding is
on a competitive basis for on-the-ground water conservation and energy efficiency construction
projects, and will be awarded in two funding group categories:
• Funding Group I: Up to $300,000 per agreement for a project completed within 2 years.
• Funding Group II: Up to $1,500,000 for a project completed within three years. Projects in this
group will be funded on an annual basis. Applicants may not request more than $750,000 for
any one year of the project. Funding for the second and third years of the project is contingent
upon future appropriations.
One capital improvement program project that qualifies for the grant is the Pressure Control
Hydroelectric Facility (PCHF), Project No. 5025, which will have the benefits of generating electrical
power to produce annual revenue in the form of a credit for up to 50 electrical meters using the RES-
BCT tariff, and reduce CMWD's carbon footprint by recovering valuable renewable energy. On
September 22, 2009, through adoption of Resolution No. 1376, the Board approved a professional
engineering services agreement with Carollo Engineers for preliminary design, preparation of plans
and specifications, construction support, and startup services of the (PCHF). Based on actual bids
received for two types of hydroelectric generators and a project cost estimate in the range of $1.3
million to $1.7 million, a $300,000 grant would provide a cost share by BUREC of 23 percent to 18
percent. Staff is recommending that the Board authorize a grant application for the Pressure Control
Hydroelectric Facility (PCHF), Project No 5025 using Funding Group I in the amount of $300,000. To
obtain the WaterSMART grant requires the following:
DEPARTMENT CONTACT: William Plummer, (760) 602-2768. bill.plummer@carlsbadca.gov
FOR CITY CLERKS USE ONLY
BOARD ACTION: APPROVED
DENIED
CONTINUED D
WITHDRAWN D
AMENDED D
CONTINUED TO DATE SPECIFIC D
CONTINUED TO DATE UNKNOWN D
RETURNED TO STAFF D
OTHER-SEE MINUTES D
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• The CMWD Board of Directors must support the application submitted.
• The CMWD must be capable of providing the amount of project cost share funding and/or in-kind
contributions specified in the funding plan submitted to BUREC.
• The CMWD must commit to working with BUREC to meet established deadlines for entering into a
cooperative agreement.
ENVIRONMENTAL IMPACT:
The 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 Structures. The Class 3 exemption
applies to construction and location of limited numbers of new, small facilities or structures and
installation of small new equipment. A "Notice of Exemption" was filed with the County of San Diego
on October 18, 2011.
FISCAL IMPACT:
Funding for the PCHF project has previously been appropriated in the amount of $2,000,000 from the
Water Replacement Fund. Sufficient funds are available for the completion of the project design and
construction.
TABLE 1 - CURRENT EXPENDITURES FOR
PRESSURE CONTROL HYDROELECTRIC FACILITY, PROJECT NO. 5025
TASK DESCRIPTION
Design Phase
Construction, Inspection,
Materials Testing
Studies and Reports
TOTAL
CURRENT YEAR
APPROPRIATION
$425,264
1,563,277
11,459
$2,000,000
CURRENT
FISCAL YEAR
EXPENDITURES/
ENCUMBRANCES
$235,403
0
11,459
$246,862
REMAINING
BALANCES
$189,861
1,563,277
0
$1,753,138
There would be minor administrative costs for staff to prepare the application to request WaterSMART
funding, and to have the application reviewed by a consultant for completeness to meet competitive
requirements in the grant application. If awarded, BUREC would provide up to a $300,000 project cost
grant.
EXHIBITS:
1. Resolution No.1433 authorizing the Carlsbad Municipal Water District Pressure
Control Hydroelectric Facility, Project No. 5025 Application to the Bureau of Reclamation for
WaterSMART grant.
1 RESOLUTION NO. 1433
2 A RESOLUTION OF THE BOARD OF DIRECTORS OF
CARLSBAD MUNICIPAL WATER DISTRICT, CALIFORNIA,
3 AUTHORIZING APPLICATION TO THE BUREAU OF
RECLAMATION FOR A WATERSMART GRANT FOR
4 PRESSURE CONTROL HYDROELECTRIC FACILITY, PROJECT
NO. 5025
5 •
6 WHEREAS, the Carlsbad Municipal Water District (CMWD) is organized and operates
7 under the Municipal Water District Law of 1911, Division 20 (commencing with Section 71000) of
8 the California Water Code, and is a subsidiary district to the City of Carlsbad; and
WHEREAS, the United States Department of the Interior Bureau of Reclamationy
provides monetary grants to state, regional, or local authorities, Indian tribes or tribal
organizations, and other entities such as water districts to finance projects that conserve and use
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water more efficiently, increase the use of renewable energy and improve energy efficiency,
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benefit endangered and threatened species, facilitate water markets, or carry out other activities to
13 address climate-related impacts on water or prevent any water-related crisis or conflict; and
14 WHEREAS, CMWD has committed funding to maximize and diversify water supplies
15 and the efficient delivery of those supplies within the CMWD's service area and watershed,
16 including projects that result in water savings and improved energy efficiency in the management
17 and delivery of water; and
18 WHEREAS, On September 22, 2009, through adoption of Resolution No. 1376, the
1Q Board approved a professional engineering services agreement with Carollo Engineers for
preliminary design, preparation of plans and specifications, construction support, and startup
services of a Pressure Control Hydroelectric Facility (PCHF); and
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NOW, THEREFORE, BE IT RESOLVED by the Board of the Carlsbad Municipal Water
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District, California, as follows:
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24 1. That the above recitations are true and correct.
25 2. That the Executive Director or Director of Utilities is hereby authorized to apply
25 for a grant through the U. S. Department of the Interior's WaterSMART: Water
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1 and Energy Efficiency Grants for the fiscal year 2012 program to construct the
2 Pressure Control Hydroelectric Facility, Project No. 5025.
3 3. That if recommended for funding by Bureau of Reclamation, CMWD's Board of
Directors supports the application submitted to receive a grant up to $300,000.
5 4. That if recommended for funding by Bureau of Reclamation, CMWD's Board of
Directors authorizes and ensures capability of CMWD to provide matching funds6
in the form of a cash and in-kind contributions in the amount specified in the
application Funding Plan.
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5. That if recommended for funding by Bureau of Reclamation, CMWD will work
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with the Bureau of Reclamation to meet established deadlines for entering into a
10 cooperative agreement to obtain a WaterSMART grant in the amount of
11 $300,000.
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1 PASSED, APPROVED AND ADOPTED at a Special Meeting of the Board of
2 Directors of the Carlsbad Municipal Water District of the City of Carlsbad on the 6th day
3 of December 2011, by the following vote to wit:
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5 AYES: Board Members Hall, Kulchin, Blackburn, Douglas, Packard.
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NOES: None.
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ABSENT: None.8
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MATT HAll, President
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13 ATTEST:
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16 L LORRAINE fv/l. WOOD, Secretary
(SEAL)
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