Title
Adopt a Resolution to Approve an Appropriation of $1,284,140 from 2023 Unspent Funds Balance to Fund the Climatec Phase III Project
Staffreport
COUNCIL PRIORITY
• Infrastructure
• Sustainability & Resiliency
SUMMARY AND RECOMMENDATIONS
Staff recommends that Council approve funding for this energy efficiency project.
BACKGROUND
In December 2009, the City adopted a Climate Action Plan (CAP), with a vision to guide San Leandro towards a sustainable future that reduces greenhouse gas emissions from current levels, while promoting economic prosperity for present and future generations. An updated CAP was adopted by the City Council in July of 2021.
The City has a contract with Climatec, LLC for Phase III energy efficiency upgrades that will reduce energy consumption and greenhouse gas emissions. The work includes HVAC, building automation system, and lighting upgrades at City Hall, Fire Stations 9-13, the History Museum, the Main Library, the Manor Branch Library, the South Branch Library, the Public Safety Building, the Public Works Admin Building, and the San Leandro Family Aquatic Center. The project also includes updated and expanded streetlight controls Citywide and a new high efficiency variable frequency drive and smart pump control system at the San Leandro Family Aquatic Center.
The project is currently funded in the amount of $3,710,744, and an additional $1,284,140 is required to complete the work. When work started, staff envisioned obtaining $1,284,140 as a loan from the California Energy Commission; however, this loan was not secured.
Analysis
Staff recommends appropriating $1,284,140 from 2023 Unspent Funds to fully fund the project.
Current Agency Policies
• General Plan Policy OSC-7.6: Reducing Municipal Greenhouse Gas Emissions. Reduce greenhouse gas emissions associated with municipal operations, including those associated with energy use, City vehicles, City recycling and composting operations, and utilities.
• 2021 Climate Action Plan Policy ME-1: Municipal Energy Retrofits. Continue implementing municipal energy efficiency retrofits, including all-electric buildings and public lighting retrofits.
Environmental Review
This project was determined to be exempt under the California Environmental Quality Act (CEQA) §15301, Existing Facilities.
Fiscal Impacts
The total project cost for infrastructure improvements, including taxes and bonds, is $4,994,884.
This multi-fund project will require Council appropriation of $1,284,140 for Fiscal Year 2024-2025 from the FY 2023 Unspent Funds Balance into Account 210-18-149-5240.
The project will be funded as follows:
• American Rescue Plan Act fund $3,314,916
• Building Maintenance Fund $395,828
• FY23 Unspent Funds $1,284,140
• Total $4,994,884
This Council action was not budgeted and will require an appropriation of $1,284,140 for this project that will draw down the FY 2023 Unspent Fund’s balance.
Budget Authority
Approval of this Resolution will appropriate $1,284,140 from 2023 Unspent Funds to account 210-18-149-5240 (Building Maintenance Fund) that will then be encumbered under the existing purchase order associated with this agreement. Other funding sources listed in the fiscal impacts section above have already been appropriated for the project.
ATTACHMENTS
A: Resolution, Approving Recommended Appropriation
B: Climatic Installation Agreement
PREPARED BY: Dana Turner, Administrative Specialist III, Public Works