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Department of General Services

Central Plant Renovation
Action requested

The requested action will authorize site selection for this project.
Scope Description

This project is within scope. The Department of General Services (DGS) Central Plant Renovation Project (Project) will implement the mitigation plan (Plan) developed as a result of the Central Valley Regional Water Quality Control Board Cease and Desist Order (issued

March 2002) related to the discharge of heated water into the Sacramento River from the operation of the currently run state-owned Central Plant facility (CP facility). The Plan proposes to convert the existing state’s groundwater pumping/river discharge “once through” condenser water cooling system, to a closed loop system that is consistent with current industry-wide best practices and regulatory standards.

The Project will include the construction of an approximately eight million gallon thermal energy storage (TES) tank and numerous cooling towers that need to be located in the vicinity of the existing CP facility located on the City of Sacramento block bound by Q & R & 6th & 7th Streets. The Project also involves the expansion of the CP facility to accommodate new equipment such as chiller(s), boiler(s), pumps, piping and other required ancillary equipment in addition to the TES and cooling towers. Renovation work at the CP facility includes modification of some of the existing equipment as well as upgrading the energy management and control center. This work includes constructing a new underground piping distribution system (tunneling system) from the CP facility to the TES and cooling tower site(s).

DGS's analysis indicates the optimum site to construct the TES and cooling towers is on a portion of the County of Sacramento Assessor’s Parcel Numbers 006-0264-001 through

010 and 020 (city block bound by Q & R & 7th & 8th Streets) of approximately 69,000 sq. ft., hereinafter referred to as Block 264. Specifically, the property consists of the westerly two-thirds of the north half of Block 264. This determination was based on the close proximity of the TES and cooling towers to the CP facility. Construction on this site will require less tunneling between the CP facility and the TES, (resulting in less disruption to city streets during the construction period), and will make for easier and more efficient maintenance and operation of the TES. Additionally, the location of the TES and the cooling towers on Block 264 is the simplest and most mechanically efficient. This will provide for flexibility to effectively service the downtown office campus (currently 23 buildings, including the Capitol) by making it possible to expand the CP facility in the future if needed, will allow for shop and warehouse space on the site, allows for the most effective operation of the cogeneration plant as it would be able to power both the chillers and the cooling towers, and is the most cost efficient in both terms of initial cost and long term operational cost of the project.
DGS staff is seeking site selection at this time.
Funding and Cost Verification

This project is within cost. The Budget Act of 2003, Item 1760-301-0660(1), provides for $159,722,000 for acquisition, preliminary plans, working drawings, and construction. Specifically, $12,400,000 is available for acquisition as identified in the Capital Outlay Cost, Funding and Schedule Summary dated June 6, 2005. The property interests can be acquired with the funds available and in accordance with Legislative intent.


An Environmental Impact Report (EIR) is being prepared for the Project including the acquisition component. The EIR is scheduled for completion in early to mid-2006.

Condition of Property

The DGS, Environmental Services Section (ESS) conducted a site visit to the proposed Block 264 acquisition site on May 23, 2005.

The proposed acquisition site consists of surface parking and landscaping. The site contains a small, one-story, former industrial building that has been altered to serve as covered surface parking; access to all parking areas is from the City of Sacramento’s alley on the south side of the subject property.  Land uses adjacent to the proposed acquisition site include a one-story automotive repair shop, the alley running through the center of the block in an east-west direction, other surface parking, and a small office building. Other adjacent land uses include State office buildings, a fire station, and DGS’ CP facility. The proposed acquisition site contains a number of mature trees within the parking areas and along the landscape strips on Q and 7th Streets.
A Phase I Environmental Site Assessment will be prepared for this property because of the urban setting and the likelihood of past industrial usages. In addition to the Phase I, soils testing will be conducted.
Project Schedule

The project schedule is as follows:
The anticipated close of escrow is June 2006.


 The purchase price shall not exceed estimated fair market value as determined by a DGS approved appraisal.

  • DGS is not aware of any lawsuits pending concerning the property.

  • There is no relocation assistance involved with the proposed acquisition.

  • The property acquisition agreement will require delivery of title to the property free and clear of any mortgages or liens.

  • Due to Federal tax issues associated with the lease revenue bond funding, DGS will attempt to negotiate an arrangement whereby the purchase of the property is committed to but the actual purchase and close of escrow does not occur until later in 2006.

Staff Recommendation: Authorize site selection



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