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File Number: 13-465 <br />The Audit’s proposed modifications to the Plant would improve control of plant processes , and <br />yield energy and operational cost savings for the Plant. Specifically, the proposals are: <br />·Replace one existing Lamson 150 HP blower with a high efficiency turbo blower . <br />·Install a 10 HP fixed speed Sutorbilt positive displacement blower to maintain constant <br />airflow to the offline aeration tank for maintenance of diffuser heads . <br />These two measures are expected to save the City 276,000 KWh per year with an <br />approximate annual savings of $29,600 in energy costs. CalPOP will also pay the City an <br />estimated one-time rebate of $24,800, which would be returned to the WPCP Enterprise <br />Revenue Fund. The end result will be newer and more efficient plant equipment , secured at <br />no cost to the City. <br />A Program Participation Agreement (PPA) (attached) was signed in November 2011, which <br />reserves CalPOP incentive funds for the project . It stated that the City intended to move <br />forward with the project, and set terms and conditions for payment of incentives about the <br />project if installed. These incentives will be available only until November 1, 2014. <br />The Facility Audit was submitted by CalPOP to PG &E to start the process of the OBF Loan. <br />OBF Loan funding from PG&E is a separate but related effort ; coordination with PG&E is <br />handled by the CalPOP Program Manager . Loan funding of up to $250,000 at 0% interest is <br />available from PG&E for financing qualified Energy Efficiency projects . The OBF Loan <br />process will utilize the Plant’s PG &E bill savings to pay off the loan principal , and the term of <br />the loan is tied to the simple payback period of the project, conservatively estimated to be 6 <br />years; loan payback could be sooner depending on realized energy savings. The City will only <br />temporarily have out-of-pocket capital expenses during project construction, as both the <br />CalPOP rebate incentive and the OBF loan funds will be disbursed upon project completion . <br />Based on the Facility Audit and the signed Program Participation Agreement , PG&E prepared <br />the OBF Loan Agreement. Once the OBF Loan Agreement is signed by the City Manager , the <br />CalPOP Program Manager will obtain PG &E signatures, at which time the project can begin. <br />The Audit recommended three different makes of blowers for replacement . After analysis of <br />the capabilities of all three companies, and discussions with the vendors, the Audit Report <br />recommended a single blower as better suited for our application. <br />Much of the installation will be done by Plant personnel. CalPOP has no limitation or <br />recommendation on the City regarding the use of contractors or equipment purchased. <br />However, significant deviation from the project identified in the Facility Audit may lead to <br />reduced energy savings, and a smaller program incentive. The Plant will secure design and <br />instrumentation contractors and purchase the blowers. Some level of technical assistance and <br />coordination will be available from CalPOP during project installation . Completion of the <br />Page 2 City of San Leandro Printed on 10/2/2013