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RESOLUTION of the City of San Leandro City Council to Approve an Installation Agreement with Climatec, LLC for Design and Construction of Energy-Efficiency and Resiliency Projects at Various City Locations for a Total Cost of $4,994,884; Appropriation of $395,828 from Account 210-18-149-5242 (Building Maintenance Fund); and Appropriation of $3,314,916 from American Rescue Plan Act (ARPA) Account 190-17-815-5240
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WHEREAS, the City of San Leandro, through implementation of its Climate Action Plan (CAP) and other agency practices and programs, is committed to environmental and financial stewardship of limited resources; and
WHEREAS, through a competitive process, Climatec, LLC was chosen to perform an audit of the City’s municipal energy/water usage and to develop a comprehensive list of energy/water saving projects that could be constructed/implemented with zero upfront financial commitments on the part of the City; and
WHEREAS, California Government Code Sections 4217.10 to 4217.18 authorize the City Council to enter into an Installation Agreement with Climatec, LLC if the City Council finds that it is in the best interest of the City to enter into such Agreements; and
WHEREAS, the cost to the City for the Installation Agreement by and between the City and Climatec, LLC for the implementation of certain energy conservation measures will be less than the anticipated marginal cost to the City of thermal, electrical, or other energy that would have been consumed by the City in the absence of the improvements under both of these Agreements; and
WHEREAS, those City street lights that previously did not have Smart nodes attached will be upgraded to include the Smart nodes and the entire software system encompassing all City street lights will be upgraded, improving opportunities for the use of future Smart technologies; and
WHEREAS, the City received the first tranche of American Rescue Plan Act (ARPA) funds in May 2021, with the second tranche anticipated in May 2022 for a total of approximately $19 million dollars, and for which the City Council has previously provided staff direction in how to allocate ARPA funds; and
WHEREAS, the proposed Heating Ventilation Air Conditioning (HVAC) replacements, including the upgrade to MERV-13 filters, that are recommended to help fight the spread of COVID-19, meet the ARPA funding requirements and represent the largest portion of project funding at $3,314,916 (over two years); and
WHEREAS, the proposed funding source from the California Energy Commission (CEC), in the form of a 1% loan for $1,640,380 will be brought to Council for consideration at a future meeting; and
WHEREAS, implementation of the Climatec documents is contingent upon the City Council’s approval of said funding option.
NOW, THEREFORE, the City of San Leandro City Council hereby RESOLVES as follows:
1. It is in the best interest of the City to enter into the Installation Agreement with Climatec, LLC for the implementation of certain energy, Smart node, and COVID-19 prevention improvements to City facilities; and
2. Under the Contract, the anticipated cost to the City for electrical energy services provided by the energy conservation facilities will be less than the anticipated marginal costs to the City for thermal, electrical, or other energy consumed by the City in the absence of those purchases. Therefore, the City Council hereby authorizes the City Manager to execute the Installation Agreement by and between the City and Climatec, LLC, subject to edits approved as to form by the City Attorney, for the implementation of certain energy, Smart node, and COVID-19 prevention improvements to City facilities in accordance with these findings and California Government Code Sections 4217.10 to 4217.18; and
3. The City Council approves appropriation of $3,314,916 in ARPA funds in account 190-17-815-5240; and
4. The balance of $395,828 will come from existing Fiscal Year 2021-22 appropriations for major building maintenance capital improvement funds allocated to account 210-18-149-5240.