HomeMy WebLinkAboutPW Energy Efficiency Upgrades____________________________________________________________________________________
FOR CITY CLERK ONLY
File No.: 4-4-6 x 9-3-40
Council Meeting: 09/05/2017
Disposition: Resolution 14387 and Resolution 14388
Agenda Item No: 6.a
Meeting Date: September 5, 2017
SAN RAFAEL CITY COUNCIL AGENDA REPORT
Department: City Manager
Prepared by: Bill Guerin
Director, Public Works
Cory Bytof,
Sustainability & Volunteer Program
Coordinator
City Manager Approval: __________
File No. 06.01.229
TOPIC: ENERGY EFFICIENCY LOAN AND MASTER SERVICE AGREEMENT
SUBJECT: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL APPROVING AND
AUTHORIZING THE CITY MANAGER TO EXECUTE
1. AN AGREEMENT FOR AN ENERGY EFFICIENCY LOAN WITH THE CALIFORNIA ENERGY
COMMISSION (CEC) FOR VARIOUS SYSTEM UPGRADES TO CITY FACILITIES AND STREET LIGHTS.
2. A MASTER SERVICES AGREEMENT WITH PG&E TO PERFORM VARIOUS ENERGY EFFICIENCY
SYSTEM UPGRADES TO CITY FACILITIES AND STREET LIGHTS FOR A TOTAL PROJECT NOT TO
EXCEED AMOUNT OF $1,178,813.
RECOMMENDATION: Adopt resolution.
BACKGROUND:
In recent years the City of San Rafael has explored the use of renewable and energy efficiency projects
in order to reduce our energy consumption. To date solar panels have been installed at the Public
Works Corporation Yard, C Street Parking Facility and Albert J. Boro Community Center, and a host of
energy efficiency measures have taken place at City Hall and other facilities.
In order to fund additional energy upgrades, Public Works explored other alternative funding strategies
including programs sponsored or supported by Pacific Gas and Electric Company (PG&E). Staff worked
with PG&E to find opportunities for energy savings through their Sustainable Turnkey Program. PG&E
evaluated City buildings and infrastructure and proposed a plan to upgrade or replace existing fixtures
and systems in order to increase efficiency and reduce energy costs. This proposal was brought to
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 3
agreed-upon cost of the upgrades. Attachment B is the notice of award, which includes the Loan
Agreement, Budget Detail, Promissory Note, and Estimated Amortization Schedule.
Public Works has developed a Master Services Agreement with PG&E, attached as Exhibit A to
Attachment 3, to manage and execute the project, as Public Works does not have staff capacity to take
on such a large project. PG&E will manage all construction tasks, i.e., identify low bid contractors,
secure new and dispose of old fixtures, oversee the construction, and warrant the work. PG&E has
guaranteed that the project installation as described in the Master Services Agreement (Exhibit A to
Attachment 3) will not exceed the project cost estimate of $1,178,813.
PG&E will provide the upfront funding necessary to cover project expenses until the City receives its
loan from the CEC. Once the loan is in place, the City can reimburse PG&E for the installation work
completed. Per California Government Code Section 4217.12, the City can forego the standard
procurement processes for energy services and enter into an energy service contract on terms that the
Council determines are in the best interests of the City, if the determination is made at a regularly
scheduled public hearing, public notice of which is given at least two weeks in advance, and if the City
Council finds that the project will provide energy cost-savings. Staff has determined that the proposed
energy efficiency upgrades will provide energy cost-savings, therefore Staff recommends that the
Council approve the Master Services Agreement with PG&E pursuant to Section 4217.12.
FISCAL IMPACT:
There is no initial net impact to the City’s budget. The cost of the loan can be paid with the energy
savings realized from the conversion, a net zero for the City during the repayment period. The City will
be billed twice a year, in June and December after the projects are completed. The entire loan will be
paid off in seven years; after which time the City will realize the entire savings, estimated at $175,798
annually. There will likely be additional annual savings associated with maintenance because the
equipment will be relatively new compared with the older equipment being replaced.
OPTIONS:
The City Council may choose to:
1. Adopt the following resolutions authorizing the City Manager to execute:
- An agreement for an energy efficiency loan with the California Energy Commission (CEC) for
various system upgrades to city facilities and street lights.
- A Master Services Agreement with PG&E to perform the various energy efficiency system
upgrades to city facilities and street lights for a total project not to exceed $1,178,813.
2. Instruct staff to modify the resolution(s).
3. Not approve the resolutions, and forego acceptance of the CEC loan and associated Master
Services Agreement with PG&E.
RECOMMENDED ACTION:
Staff recommends that the City Council hold a public hearing to consider the Master Services
Agreement with PG&E, and adopt the two attached Resolutions as presented.
ATTACHMENTS:
1. Resolution Accepting California Energy Commission (CEC) Loan
2. Exhibit A to Attachment 1: CEC Loan Award
3. Resolution Approving Master Services Agreement with PG&E
4. Exhibit A to Attachment 3: PG&E Services Agreement