5A Public Hearings 2020 0928 - Laserfiche WebLink

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File Number: 20-406 similar program through the traditional specified bid approach, it would not only take much longer to implement the efficiencies, but also expose the City to change orders, scope gaps between separate contractors, and require significant upfront capital for the necessary design and engineering work. As with the previous Climatec-led projects, competitive bidding will be done for the major components of the project. This project will also be subject to the City’s Community Workforce Agreement (CWA), with full transparency on the competitive bids and resulting subcontractor selection. The City Attorney reviewed the draft agreement and finds that the agreement with Climatec meets the City’s requirements, such that this agreement is approved as to form. Fiscal Impacts The total estimated cost for infrastructure improvements, including taxes and bonds, equals $8,045,781. The estimated savings/revenue in the first year is $842,517. Fifteen-year lifecycle savings/revenue are projected at $14,322,177 with an estimated net positive fiscal impact of $6,276,396 over the same period. The City has several options to fund these improvements, including issuing debt. Because of other WPCP Enterprise Fund debt obligations, including the Infrastructure State Revolving Fund loan utilized to pay for the $50+ million upgrade project, other planned infrastructure work, and operating expenses that include contingency funds in case of a major Plant failure, it was determined that existing WPCP fund balance would not be used to pay for this project. With the SGIP grant in the amount of $420,857, this leaves $7,624,924 to be financed. The Finance Department is looking at the following options: adding onto our existing municipal lease that was obtained via issuance of an RFP and issued from Bank of America; issue a new RFP for a new municipal lease; or obtain a Bay Area Air Quality Management District (BAAQMD)/IBank loan. At present, municipal leases are presenting rates at approximately 2.25% (15-year term) to 2.45% (20-year term). IBank loans are ranging from approximately 2.6% (15-year term) to 2.65% (20-year term). The SGIP grant requires City approval of the proposed project within 90 days of PG&E’s ‘conditional reservation’ (completed July 14, 2020). In order to enter their Proof of Milestone phase, a fully executed Installation Agreement must be submitted to PG&E. Staff notes that the proposed project funding source (that portion beyond the SGIP grant) will be brought to Council for consideration at a future meeting, and that implementation of Climatec documents is contingent upon the City Council’s approval of said funding option. ATTACHMENTS ·Attachment A - Installation Agreement ·Attachment B - Third-Party Review of Battery Storage Proposal ·Attachment C - Environmental Benefits Page 6 City of San Leandro Printed on 9/23/2020 13