SR-510-005-03 (3)
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Santa Monica, California, July 15,1977
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Mayor and City Council
JUL 2 IS 19"
FROM: City Staff
SUBJECT: Proposed appl ication for EDA Funds
Backg round
There are approximately 150 people living In Santa Monica who will be laid off
due to the cancellation of the B-1 Bomber program at Rock~-Jell International.
Most if not all of these people will become unemployed by the end of September.
The federal government has allocated 572 million of EDA Title 9 Public Works and
Economic Development Act monies to the State of California for use in mitigating
the economic impacts resulting fro~ the loss of the B-1 Bomber program. These
monies will be used for local projects whIch create jobs for those workers
idled by the shutdown, and employ subcontractors facing business losses due
to the cancellation of the B-J Bomber program. There is an estimated 52 million
per year of direct subcontracting business losses for Santa Monica, excluding
losses to businesses and services supportive of B-1 Bomber personnel.
Discussion
In the past Six months, City staff has explored various methods for development
and conservation of energy resources in Santa Monica. These Include a Power
Recovery Station at the Mount 01iviette Reservoir, an Integrated Energy System
utilizing coastal resources (excluding oil), a Refuse Transfer Station and
Resource Recovery Facility at the City Yards, and an Energy Management Plan
for the City_ These projects might be suitable for inclUSion In the State1s
development plan for implementation by the forthcoming EDA monles_
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JUL 2 6 1977
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Mayor and Council
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July 15, 1977
None of these projects require the development of new technology, but
seek to implement existing technology. Each project would supply a variety
of jobs at various levels and utilize existing technology available locally.
Subcontracting businesses formerly associated with the B-1 Bomber project
may be reoriented to accommodate the needs of these projects. As an example,
one firm in Santa Monica faces losses of $200,000 due to the cancellatIon
of the B-1, but is equipped Immediately to plan, engineer and install,
without retraining personnel, the Mount Oliviette Power Recovery Station.
The Mount Oliviette Power Recovery Station would entail installing a turbine
to capture the force of the incoming water supplied by M W.O. Currently the
water speeds into the Arcadia Treatment Facil ity where its power dissipates,
it is then pumped for distribution throughout the City. If the City installed
a turbine to this incoming water supply, power would be recovered and converted
to electricity. The generated electricity is estimated to be greater than the
amount necessary to sustain the pumping facility at Bundy and Wilshire. In
other words, the power generated by a common resource could pay for its own
distribution.
The Integrated Energy System, utilizing coastal resources, entails a more
elaborate application of existing technology. This proposal calls for a
combination of solar, wind and wave applications potentially located on or
near the Pier, which would generate substantial amounts of energy in the
forms of heat and electricity. Heat may be used for water and space heating,
and for coolings and refrigeration systems, and should be distributed within
close proximity to its generation in order to maximize efficiencies. Electrical
energy may be sold to Edison as energy credits against the City's electric
bill, the major portion of which is street lighting. This particular project
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Mayor and Council
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July 15, 1977
offers the City a unique opportunity to utilize existing, renewable energy
resources with minimal environmental impact and demonstrate an economically
viable, local solution to increasing energy use and costs.
A conclusion has not been reached on the feasibility of a Refuse Transfer
Station/Resource Recovery Facility for the City Yards; but, monies could be
included in the total package for such a study and/or the initial hardware
required.
The fourth proposed project is an Energy Management Plan which details
existing energy resources and conservation measures which may be applied
throughout the City. This would include possible modifications to building
codes and exploration of alternatives should present energy resources
become scarce or economically prohibitive.
Conclusion
EDA has supplied the State with Immediate funds of $100,000 to formulate
a development plan which will dictate the projects to be funded by the
$72 mill ion. In order for the City to receive a share of the forthcoming
EDA monies, the City must participate in the initial planning stages and
secure a preferred position with the State Business and Transportation
Agency, and local EDA western representatives. A considerable effort
should be mobilized if the City wishes to compete for these funds.
Recommendation
Staff recommends that the City Council authorize the payment of $4,000,
derived from Community Development Block Grant administration monies, to
contract with Fluid Energy Systems, Inc., to provide the State and EDA
with the necessary technical documentation and to negotiate for funding
of Santa Monica projects.
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Mayor and Council
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July 15. 1977
Fluid Energy Systems. Inc.. is a local engineering firm which has extensive
experience in a variety of energy fields. In addition. F.E.S. has the
necessary expertise in grant applications and is involved in several similar
projects throughout the State. Staff recommends this firm because they
are uniquely qual ified to handle the work proposed.
Prepared by: Devon Bates
John Ja 1 i 1 i
Stan Scholl
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