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