AGENDA TITLE:
title
Adopt Resolution Selecting the Lodi Energy Center Hydrogen Conversion Project as the City’s One Voice Project; and Authorize Staff to Prepare Application for Nomination for the 2023 San Joaquin Council of Governments’ One Voice Trip (PW)
end
MEETING DATE:
November 15, 2023
PREPARED BY:
Charles Swimley, Public Works Director
recommendation
RECOMMENDED ACTION:
Adopt a resolution selecting the Lodi Energy Center Hydrogen Conversion Project as the City’s One Voice project; and authorize staff to prepare application for nomination for the 2023 San Joaquin Council of Governments’ One Voice Trip.
body
BACKGROUND INFORMATION:
The One Voice program is San Joaquin Council of Governments’ (SJCOG) federal advocacy program for San Joaquin County that promotes projects, programs and issues of regional significance to federal legislators and agencies typically through an annual trip to Washington DC. Due to the competitive nature of federal funding requests, SJCOG is focusing the One Voice initiative on elevating regional projects. In addition, projects being submitted for One Voice support must clearly align with SJCOG’s legislative priorities and eligibility requirements for the discretionary and federal earmark programs.
To maximize funding success, SJCOG has developed a process to review and evaluate project applications. The process includes determining project eligibility based on established criteria and an ad-hoc committee to review the applications. Each jurisdiction will be limited to submitting one regionally significant project application for One Voice nomination.
Below are the criteria by which the projects will be evaluated.
- Project must be regional in nature and have a federal nexus.
- Must be at or near completion of National Environmental Policy Act (NEPA) clearance.
- Be sufficiently developed to leverage federal assistance (shovel ready).
- Projects should be targeted for appropriations in the Federal Fiscal Year 2024.
There are five projects that staff is proposing as options for the One Voice nomination. There is one transportation project, the (State Route 99 / Harney Lane Interchange Reconstruction Project); one broadband communications project (Broadband Infrastructure Project); a low bar navigation center (Lodi Access Center); a workforce development center (Workforce Education Center); and an alternative power project (Lodi Energy Center Hydrogen Conversion Project). A brief description of each project option is provided below.
Option 1 - State Route 99 / Harney Lane Interchange Reconstruction Project
The existing interchange is an outdated design with limited operating conditions, resulting in a reduced level of service condition. Funding for the State Route 99/Harney Lane Interchange Reconstruction Project was requested through the 2008, 2010, 2019 and 2020 One Voice trips but was not successful in receiving funds.
The purpose of the interchange project is to reduce congestion, improve traffic operations and accommodate anticipated travel demand due to development approved by the City of Lodi’s General Plan. The General Plan identifies the Harney Lane corridor as the main area of growth for the City over the next 20 years where the projected growth in and around Lodi will put traffic demands on the interchange that cannot be met unless improvements are implemented. The total project cost is estimated to be approximately $60 million.
Criteria Evaluation: This project is marginally regional in nature as it will primarily serve residents within the City of Lodi and surrounding areas. The project planning has not evolved to the environmental study phase of work, therefore the NEPA process has not been started. The project is not sufficiently developed to leverage federal funds and will not be ready to receive appropriations in the federal fiscal year 2024. In addition, more attractive road projects exist regionally and nationally that compete for the same limited resources.
Option 2 - Broadband Infrastructure Project
The Broadband Infrastructure Project is a multi-phased fiber communications network improvement / installation project. Funding for this project was requested in 2022, but was not successful in receiving a nomination.
Phase 1 includes upgrading the existing fiber backbone to support the City’s growing needs across many departments and applications. The City of Lodi currently owns and maintains approximately 20 miles of fiber used to support communications for public safety, data collection for utility billing, utility operation software platforms, as well as citywide data and communication efforts. The existing fiber backbone is reaching the end of its useful life and additional fiber will be needed over the next 10 years to support existing and build upon future City and utility connectivity needs as well as enable a platform for possible opportunities benefitting Lodi residents and businesses. Phase I includes a full engineering design of the fiber backbone rebuild to identify all requirements and constraints. The design is substantially complete and a Request for Proposals to select a construction contractor for the rebuild is expected to be released in early 2024. The new fiber backbone would be built with extra capacity to support potential future broadband services in Lodi.
The remaining phases (Phases 2-4) include the incremental expansion utilizing public / private partnerships to build off of the Phase 1 backbone improvements to serve neighborhoods, business districts and eventually the entire City. The capital investment for the completed project is estimated at approximately $45 million.
Criteria Evaluation: This project is not regional in nature as it will primarily serve residents within the City of Lodi and surrounding areas. The project planning has not evolved to the environmental study phase of work, therefore the NEPA process has not been started. The initial phase of the project (Phase 1) is designed and local funding is available. The remaining phases of design are not sufficiently developed to leverage federal funds and will not be ready to receive appropriations in the federal fiscal year 2024.
Option 3 - Lodi Access Center
The City of Lodi is in the midst of developing a navigation center called the Lodi Access Center and Emergency Shelter (“Access Center”). It will have the capacity to house the Lodi 2022 Point in Time Count number of unsheltered persons. The Lodi Access Center will be a low-barrier, service-enriched shelter that will facilitate the linkage to needed resources to help individuals exit the cycle of homelessness. Onsite services include intensive case management, hygiene facilities, 24/7 staffing including security, and janitorial services. The Access Center will offer those in need the opportunity to regain safety and engage in supportive connections that allow them to move forward with rebuilding their lives, as well as develop pathways to permanent housing, employment, benefits, healthcare, sobriety, and stability. To make sheltering more accessible, partners, pets, and possessions will be allowed.
Various grant resources have been awarded towards the development and construction of the Access Center facility and staff continue to seek funding resources. Additional grant resources towards capital costs would allow for completion of the project and extend the current operational funding capacity. The total capital project cost is estimated at $14 million.
Criteria Evaluation: This project is not regional in nature as it will primarily serve residents within the City of Lodi and surrounding areas. The project planning has evolved to where the NEPA process is nearly complete. The project is designed and local funding is available. The remaining phases of design are sufficiently developed to leverage federal funds and will be ready to receive appropriations in the federal fiscal year 2024.
Option 4 - Workforce Education Center
Recognizing that there is a need for creative and adaptable solutions to employment concerns, the City of Lodi is approaching workforce development through a targeted regional approach. To accomplish this objective, the Community Development Department is working to launch a Workforce Education Center. Many of the City’s current projects would benefit from the development of the Workforce Education Center which would not only create jobs, but alleviate persistent economic distress and support long-term comprehensive economic development. By developing a workforce training facility that supports the whole individual on their path to job readiness, the City hopes to create exits to homelessness or income insufficiency through implementing education and training programs to enhance career prospects for anyone in Lodi or San Joaquin County that is in need. Course offerings could include reading/writing comprehension, English as a second language, computer basics, life skills, resume building, diploma preparation (HS/GED), etc., as a foundation towards next steps in the job readiness programs offered at the Workforce Education Center. Training programs are anticipated to include subjects such as Certified Nurse Assistant (CNA), Welding, Electrical, Plumbing, Information Technology, and other certification courses.
The City of Lodi has current local commitment and has been awarded funding from San Joaquin County to begin the construction of the Workforce Education Center. This funding will allow for the foundation and the shell of the building to be completed. However, Staff continue to apply for and seek grant resources for the completion of the construction buildout of the project as well as ongoing operational support. An application has recently been submitted that could help support construction and initial operations; however, awards are still pending and likely will not be known until the first quarter of 2024. The total capital project cost is estimated at $5 million.
Criteria Evaluation: This project would be regional in nature as it will serve residents within the City of Lodi and surrounding San Joaquin County. The project planning has evolved to where the NEPA process is nearly complete. The project is designed and local funding is available for initial phases. The remaining phases of design are sufficiently developed to leverage federal funds and will be ready to receive appropriations in the federal fiscal year 2024.
Option 5 - Lodi Energy Center Hydrogen Conversion Project
The Lodi Energy Center Hydrogen Conversion Project is planned to be constructed in Lodi near the City’s Wastewater Pollution Control Facility and will demonstrate the use of hydrogen across multiple applications including power supply, transportation, port operations and research and development opportunities. Lodi is a participating member in NCPA’s Lodi Energy Center (LEC) 300 mega‐watt natural gas facility, which was recently upgraded to operate using up to a 45 percent hydrogen blend. The Project will use excess renewable energy when it is available to produce hydrogen on‐site to power the LEC, supplying clean energy when California needs it the most as renewable energy production declines late in the day, ultimately providing greater reliability in the state’s energy grid. The City is an approximate 10% owner of LEC and as such would be obligated to 10% of plant upgrades. Funding received through COG could offset the City’s contribution to this project.
Criteria Evaluation: The Project aligns well with the One Voice program requirements as it directly addresses issues of regional significance to federal legislators and agencies. This project is deemed substantially shovel ready and would be able to take advantage of funding appropriations in the Federal Fiscal Year 2024. The NEPA clearance is the next step as the design for the facility is already underway as part of previous project planning activities. The project aligns with nearly all of SJCOG’s legislative priorities an in initial discussions with SJCOG staff is a very attractive project for the City to submit.
STRATEGIC VISION:
2C. Economic Development: Continue to support Hydrogen Hub Project.
FISCAL IMPACT:
Not Applicable
FUNDING AVAILABLE:
Not Applicable
_______________________________________
Charles E. Swimley
Public Works Director
_______________________________________
Andrew C. Keys
Interim City Manager