Agenda Item #14.2
For Council Meeting of: November 29, 2022
CITY OF SANTA ROSA
CITY COUNCIL
TO: MAYOR AND CITY COUNCIL
FROM: DOUGLAS WILLIAMS, FACILITIES MAINTENANCE AND OPERATIONS COORDINATOR, DEPARTMENT OF TRANSPORTATION AND PUBLIC WORKS
ROB SPRINKLE, DEPUTY DIRECTOR TRAFFIC ENGINEERING, DEPARTMENT OF TRANSPORTATION AND PUBLIC WORKS SUBJECT: ENERGY AUDIT AND MICROGRID STUDY
AGENDA ACTION: MOTION
RECOMMENDATION
It is recommended by the Department of Transportation and Public Works, that the Council, by motion, direct the Transportation and Public Works Department to pursue solar and Microgrid options for the Municipal Service Center North complex.
EXECUTIVE SUMMARY
The Transportation and Public Works Department has been delegated the responsibility of maintaining the City’s buildings and public structures and to reduce greenhouse gas emissions. To improve the Department’s ability to properly deploy staff resources, develop a long-term maintenance program, and assist City Council with Climate Action goals, staff is recommending that Council, by motion, direct the Transportation and Public Works Department to pursue an option for funding solar at Municipal Service Center North (MSCN) recommended by AECOM.
A Business Plan was developed that investigates different financing mechanisms for implementation of the decarbonization plan including Energy Savings Performance Contract (ESPC), Power Purchase Agreement (PPA) and Energy Service Agreement (ESA). For each of these mechanisms, the business plan studies life cycle cost analysis, return on investment, operations and maintenance forecasting, as well as risk analysis.
BACKGROUND
The Facilities Maintenance section completed a facilities assessment and maintenance analysis in January 2018. The consultant assessed the structures, building systems, and infrastructure components for the general fund supported buildings. The Facility Condition Assessment identified current deferred maintenance, recommended annual maintenance funding levels, and prioritized capital improvements and major repairs necessary to maintain the facilities.
In July 2021, AECOM completed a detailed feasibility study for Santa Rosa to help the City identify cost-effective opportunities for reducing Greenhouse Gas (GHG) emissions and improve the resiliency of the city’s operations. Under this scope, AECOM performed a detailed investigation to analyze the feasibility of deploying microgrids at two city building clusters as well as identify opportunities for installation of solar photovoltaics and energy efficiency measures at all city facilities and parks.
In October 2021, the Climate Action Subcommittee requested that the Transportation and Public Works Department (TPW) perform a more robust analysis for the MSCN, provide a business plan, and provide funding options to City Council.
AECOM performed a detailed investigation and study to analyze the feasibility of deploying microgrids at two city building clusters as well as identify opportunities for installation of solar photovoltaics (PV) and energy efficiency measures at all city facilities and parks. A total of 47 city facilities and 63 parks were included in the scope; 9 buildings were also investigated for microgrid deployment. Utilizing the data obtained during detailed site visits, as well as information provided by city staff, AECOM developed a comprehensive suite of solutions across three main aspects of the scope:
Energy Efficiency
Renewable Energy
Transportation Electrification
As a result of the audit, it was determined that the MSCN was the best location for solar, battery storage, and a possible microgrid installation.
PRIOR CITY COUNCIL REVIEW
On January 28, 2020, during the Study Session (3.1) City Council directed TPW to pursue an Energy Audit for city facilities.
On March 29, 2022, (12.4) City Council approved an amendment with AECOM to create a business plan to analyze funding opportunities for installation of solar PV systems at MSCN, the Laguna Treatment Plant and the Utilities Field Offices (UFO); this will additionally provide an analysis of energy efficiency for the mechanical systems at MSCN.
ANALYSIS
As a result of the facilities assessment completed in January 2018 as well as an Energy Audit in July 2021, the City of Santa Rosa understands the condition of our fixed building assets.
A business plan was developed using the financial outputs of the decarbonization plan to analyze the cash flow of the various business solutions.
The following assumptions and inputs were used to model the cash flow of the decarbonization plan:
Energy Efficiency
Solar PV and Battery Storage
Transportation Electrification
Equipment Replacements and Operation Cost Reserves
FISCAL IMPACT
Seeking City Council direction on business plan option. Will return in the future seeking funding to support City Council’s direction.
ENVIRONMENTAL IMPACT
This action is exempt from the California Environmental Quality Act (CEQA) because it is not a project which has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment, pursuant to CEQA Guidelines Section 15378.
BOARD/COMMISSION/COMMITTEE REVIEW AND RECOMMENDATIONS
On September 22, 2020, TPW briefed the Climate Action Subcommittee on the status and details of the proposed study. The Subcommittee provided comments and supported TPW in bringing this proposal to City Council.
NOTIFICATION
Not applicable.
ATTACHMENTS
Attachment 1 – Energy Audit and Microgrid feasibility study Attachment 2 – Business plan analysis
CONTACT
Douglas Williams – Facilities Maintenance and Operations Coordinator [email protected] - (707) 543-3712
MUNICIPAL SERVICE CENTER NORTH BUSINESS PLAN ANALYSIS
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