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RESOLUTION of the City of San Leandro City Council to Approve an Installation Agreement with Climatec, LLC for Implementation/Construction of Energy-Efficiency and Resiliency Projects at the Water Pollution Control Plant for a Total Cost of $8,045,781; to Accept Grant Funds of $420,857 from Pacific Gas & Electric’s Self-Generation Incentive Program Grant; and to Approve the Appropriation of Grant Funds to Account 593-52-113
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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 and resiliency measures including high strength waste receiving, biogas to renewable natural gas, a battery energy storage system with microgrid controller and related infrastructure and equipment upgrades will be $8,045,781, which is 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, the City applied for and was awarded a Self-Generation Incentive Program grant from Pacific Gas & Electric in the amount of $420,857, which will be utilized to fund a portion of this project; and
WHEREAS, the proposed project funding source (that portion beyond the SGIP grant) 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 does RESOLVE 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 and resiliency improvements to City facilities; and
2. Under the contract, the anticipated cost to City for thermal or electrical energy or water conservation services provided by the energy conservation facilities will be less than the anticipated marginal cost to the City for thermal, electrical, or other energy consumed by the City in the absence of those purchases. The estimated savings/revenue in the first year is $842,517 and fifteen-year lifecycle savings/revenue are projected at $14,322,177. Projected cost savings resulting from the improvements are estimated to yield a net positive fiscal impact of $6,276,396 over 15 years.
Therefore, the City Council hereby authorizes the City Manager to execute the Installation Agreement by and between the City and Climatec, LLC, including all agreements and attachments thereto, subject to edits approved as to form by the City Attorney, for the implementation of certain energy and resiliency-related improvements to City facilities in accordance with these findings and California Government Code Sections 4217.10 to 4217.18; and
3. The City Council accepts the award of $420,857 in grant funding (revenue account 150-3643) from Pacific Gas & Electric’s Self-Generation Incentive Program.
4. The City Council approves appropriation of grant funds in account 593-52-113.
5. The City Agrees to be bound by all terms and conditions of the grant agreement and any other agreement or instrument as may be required by PG&E and as may be necessary to fulfill the terms of the grant agreement.